Did you know that many of your travel costs can be tax-deductible if they’re for business purposes? Here’s what you need to know:
✅ What Counts as a Business Trip?
- Travel must be "ordinary and necessary" for your business.
- It should primarily be for business purposes (work, meetings, conferences, etc.).
- Those who are self-employed can deduct travel expenses on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship).
Deductions You Can Claim:
1️ Transportation: Flights, trains, buses, or rental cars to your business destination.
2️ Lodging: Hotels or other accommodations while away from home.
3️ Meals: 50% of your business-related meals while traveling.
4️ Local Transportation: Taxis, rideshares, or parking fees at your destination.
5️ Internet & Phone: Work-related Wi-Fi or phone charges during your trip.
6️ Conference Fees: Registration costs for workshops or events.
Deductible travel expenses include (posted on the IRS website):
- Travel by airplane, train, bus or car between your home and your business destination.
- Fares for taxis or other types of transportation between an airport or train station and a hotel, or from a hotel to a work location.
- Shipping of baggage and sample or display material between regular and temporary work locations.
- Using a personally owned car for business.
- Lodging and meals.
- Dry cleaning and laundry.
- Business calls and communication.
- Tips paid for services related to any of these expenses.
- Other similar ordinary and necessary expenses related to the business travel.
❌ What’s Not Deductible?
- Personal activities or extra days spent for leisure.
- Family members’ travel expenses (unless they’re employees traveling for business).
Pro Tips for Travel Deductions:
📌 Document Everything: Keep receipts for all expenses and note the business purpose of your trip.
📌 Blend Business & Leisure: If part of your trip is personal, only the business-related portion is deductible.
💼 Bonus: Travel often? Use apps or work with a tax professional to make tracking deductions effortless.
🛫 Let us help you navigate the ins and outs of tax deductions! Contact Maribeth and the team for expert advice.