Step 6: Actual expenses

Line 23: Enter your total annual expenses for gasoline, oil, repairs, insurance, tires, license plates, and similar items. Do not include state and local personal property taxes or interest expense you paid. (Deduct state and local personal property taxes, if any, on Form IT-196, line 7.) Employees cannot deduct car loan interest.

Line 24a: If during 2023 you rented or leased instead of using your own vehicle, enter the cost of renting. Also, include on this line any temporary rentals, such as when your car was being repaired, except for amounts included on line 3.

Line 24b: If you leased a vehicle for a term of 30 days or more, you may have to reduce your deduction for vehicle lease payments by an amount called the inclusion amount.

To determine your inclusion amount, see Itemized deductions and review the 2023 IRS Publication 463 or federal Form 2106.

Line 25: If during 2023 your employer provided a vehicle for your business use and included 100% of its annual lease value in box 1 of your federal Form W-2, enter this amount on line 25. If less than 100% of the annual lease value was included in box 1 of your federal Form W-2, skip line 25.

Line 28: If you completed Step 7, enter the amount from line 38. If you used federal Form 4562 to calculate your depreciation deduction, enter the total of the following amount from:

depreciation allocable to your vehicles (from federal Form 4562, line 28).

any IRC § 179 deduction allocable to your vehicles (from federal Form 4562, line 29).