Welcome to Chicago the “Windy City”! Chicago is one of the top most visited tourist locations that many people visit year in year out. Chicago is home to their famous “Chicago Style” pizzas, the NFL Champion Bears, and World Champion White Sox. Chicago is a great place to live and you will have no lack of places to visit in your rental car. Now the question is can you deduct the rental car costs as a moving expense on your yearly income tax?

Deductions on car rentals can be on a very fine line when it comes to the IRS. The rules are if you are moving due to relocation of a job or you are starting a new job then you can indeed deduct the costs on your taxes. This is however pending that you are paying for the costs from your own money. If your employer is paying the costs and you try to claim them you may land yourself in a little bit of trouble.

How do you deduct the rental car costs on your taxes? Well first of all look over the standard form 3903 and be ready to answer all of the questions fully. Make sure that you keep track of all of the mileage that you put on the car. Last, make sure that you hold on to your receipts for gas and car maintenance. The receipts are the only thing that will stand in as an advocate for your deduction. Before you go to file your taxes call one of the tax agents for detailed information on exactly what you should bring to your appointment. The more prepared you are the easier it will be to deduct those car costs on your income tax.