Federal tax code may favor driving over other transportation modes

There are common complaints that transit is subsidized and roads pay for themselves; however, this is found over and over again to be untrue. Taxes are due in less than a month, and the Tri-state took a peak at the available and recently-expired tax credits and deductions that are related to automobile and transit use in the federal tax code. They did so in order to see if the tax breaks being proposed had a bias towards automobile use over other transportation.

It is possible that the federal tax code provides benefits for automobile owners; however, it seems as they offer limited incentives to taxpayers that take transit or travel by bike. This article isn’t meant to be an expert analysis on taxes, as we aren’t tax advisers, but it may be an optional guide or simply seen as an educated opinion.

If you own or operate a vehicle, these are some of the benefits you may earn:

Tax payers who choose to donate their vehicles to charity can receive a tax deduction

Individuals who have experienced an automobile crash that aren’t fully reimbursed by the insurance of the other driver, as long as the crash wasn’t the individual’s fault, may be able to deduct the unreimbursed amount.

Automobile owners may also receive tax credits to purchase or lease fuel efficient vehicles or even fuel cell vehicles and hybrid vehicles. Additionally, individuals may take a tax credit for qualified fuel cell vehicles that were serviced in 2012.

Also, individuals that drive to work may be eligible to take up to $245/month in a pre-tax deduction in order to cover parking expenses.