Oil & Gas Tax Deductions

In many situations, you can deduct gas, oil and other transportation expenses from your income taxes. Always keep supporting documentation such as receipts, travel logs, statements and other documentation to substantiate your claims. Travel logs should contain the date, who is involved (charity, doctor, or business), purpose of the trip, mileage, expenses and pertinent information. You must keep accurate records for each trip, prorating the expenses according to the purpose (medical, charity, or business). You cannot deduct personal expenses.

Medical And Dental

If you itemize your deductions, you can claim transportation costs for medical trips for yourself, your spouse and your dependents. This includes trips to and from medical conferences that relate to a chronic illness or are vital to reduce complications for the illness. You can also deduct trips to and from the pharmacy or doctors' offices and, if recommended as part of treatment, visits to a dependent who is in a mental hospital or other institutional setting. You can claim oil and gas expenses or a standard mileage rate of $0.165 per mile for 2010 ($0.19 for 2011). You can also deduct parking fees and tolls regardless of which method you choose. Only medical expenses exceeding 7.5 percent of your Adjusted Gross Income are deductible.

Charity

If you itemize, you may deduct the cost of transportation for providing services directly related to a charitable organization. You can choose between gas and oil expenses or a standard mileage rate of $0.14 per mile for 2010 and 2011. In addition, you can deduct parking fees and tolls related to charity-related trips. Your total charity contributions cannot exceed 50 percent of your AGI; however, any excess contributions can be carried over into future years.

Business

If you itemize, you can deduct unreimbursed expenses exceeding 2 percent of your AGI if you used your personal vehicle as part of employment. You must own or lease the vehicle to take this deduction. If you are self-employed, you are not subject to the 2 percent restriction. In addition to gas and oil, you can include tires, repairs, vehicle taxes, licenses, depreciation, insurance and lease payments. Alternately, you may claim a standard mileage rate of $0.50 per mile for 2010 ($0.51 for 2011), plus tolls and parking fees. Only the business portion of your vehicle expenses are deductible.

Moving

If you relocate as for an existing job or starting a new job, you may deduct unreimbursed moving expenses. If you use your car to move your family and personal items to a new home, or to transport items to and from a temporary storage location, you may deduct these expenses. You can claim gas and oil or use a standard mileage rate ($0.165 per mile) plus parking fees and tolls. You do not have to itemize to take this deduction.

References

• IRS.gov: Publication--502 Medical and Dental Expenses
• IRS.gov: Publication--526 Charitable Contributions
• IRS.gov: Pub 463--Travel, Entertainment, Gift and Car Expenses
• IRS.gov: Publication 521--Moving Expenses
• IRS.gov: Instructions for Form 2106--Employee Business Expenses
• IRS.gov: Standard Mileage Rates for 2010

Resources

• IRS.gov: Standard Mileage Rates for 2011