Gas & Taxes: How To Get A "Brake"

It's not even summer yet and gas prices are already starting to climb at an alarming rate. Civil unrest and possible revolution in many Middle Eastern countries may further increase gas prices. Since much of our consumer goods and produce are delivered by 18 wheelers, which chug enormous amounts of fuel, general inflation is bound to happen. Luckily, you may be able to claim fuel expenses on your tax returns and get some cash back on your tax refund for the money you spent on gas.

Those who drive commercially, like truck or taxi drivers, are the most likely to get substantial deductions from the IRS since driving is inherently part of their job description. However, if you have to commute long distances, especially an hour or more, you may also qualify for tax deductions. Also, you may be eligible for deductions based on the model of car that you drive. If you purchased a new car, truck, motor cycle, or mobile home between February to December 2009 you may be able to get a deduction for that as well under the American Recovery and Reinvestment Act of 2009.

Though you may be able to get tax deductions for gas the best way to save money on gas is to not use it all. If you find that you spend too much filling up then you might want to try car pooling to work, taking advantage of the public transportation available in your area, or walking or bicycling wherever you need to go. Not only could that save you hundreds of dollars but it will also decrease your impact on the environment.

Another way to save on fuel prices would be to invest in a hybrid car. Conventional hybrid cars recharge their batteries by reclaiming energy when braking or by converting energy from gasoline by the internal combustion engine. One new car, the Chevy Volt, can be plugged in to a common household socket while still maintaining a gasoline engine as well. Many models of Hybrids currently exist for all types of cars, whether it is a sedan, coupe, pickup truck, SUV, luxury car, or a van.

Though fuel prices are increasing it seems every day, there are ways to get your money back when you file your taxes, and these are a few of the ways you can help yourself pad the expense.