How To Deduct Travel Expenses When Filing Taxes

Over the past couple years, the COVID-19 pandemic largely put a stop to many people’s travel plans. With so many people within the U.S. now gearing up for a return to “travel normalcy,” the question of travel expenses and tax write-offs is once again at the forefront of many travelers’ minds. Luckily, there are some tried-and-true ways to save on high travel costs.

If you are one of the millions of people who often take business trips and are looking for ways to recoup some of that hard-earned cash, the good news is that you can get a lot of that money back. In fact, you may be entitled to more of your travel expenses than you might have realized. Here, we will look at just a few of the best ways to deduct travel expenses when you prepare to file your yearly taxes.

What Counts as Business Travel?

The first thing to consider is how the IRS will determine your entitlements. As an example, let’s consider the most popular expenses that people may look to recoup during the tax season: transportation and hotel booking. Keep in mind that your destination must be at least 100 miles from your place of employment in order to qualify for a tax deduction. In addition, you should be able to prove that you kept regular working hours throughout the trip, even if you weren’t located in your office or home. Over the past year, working remotely has become more popular than ever. Largely due to the social-distancing guidelines associated with the COVID-19 pandemic, many employees now opt to stay functional from a home office. This, too, can be factored into acceptable business travel. You can use gatlinburg atv rentals. However, you’ll have to prove that any trips were warranted for your job, such as meeting with clients or attending faraway meetings and work conferences.

When it comes to food and transportation, the rules are the same for freelancers and full-time employees alike. As long as you save your receipts and provide proof of necessity, you can deduct airfare, train tickets, car rentals, gas, and even Uber and Lyft rides. Best of all, you are entitled to write off half of all your food expenses, including airport coffee and groceries purchased during your trip!

Tips for Tax Season

While it may be true that a little finesse is all that it takes to make almost all of your trip tax-deductible, there are a few minor write-offs that can actually work in your favor. For example, you’ll eventually need office supplies and postage while you’re traveling, and much like any additional charges that come from staying in hotel rooms or visiting restaurants, your phone calls and Wi-Fi use count as work-related expenses. This is especially true if your job requires you to handle sensitive information.

When you eventually prepare to file your taxes, make sure you’ve gathered all of your receipts and any additional criteria that the IRA will require. You’ll need to prepare the proper tax forms and tax envelopes once you’re ready to submit your deductions, but having your credit card information handy can be a huge help. If you’re unsure of what materials could substitute for a proper receipt, be sure to ask hotel customer service for proof of your stay. Likewise, airfare or other transportation methods should include departure and arrival time authentication. If you have a program such as QuickBooks, consolidating your travel expenses should be relatively simple. However, starting a folder for all receipts accumulated on your upcoming trip can be just as effective as well as helpful for making better decisions on the road.


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