Tax preparation online

Tax Preparation online help - Tax Deductibility of Travel Expenses

This section of Tax Preparation Online help deals with tax deductibility of travel expenses.

Taxes on Travel expenses to and from work places

If you qualify to deduct home office expenses, you can deduct your daily transportation costs fro your home to another work location. For example, if you work from 9 to 5 on Job A. You  moonlight in the evening from 6 - 10 on Job B. You cannot deduct the cost of getting to Job A but you can deduct the cost of getting from Job A to Job B. You cannot deduct the cost of getting from Job B to home.

Travel expenses for business trips

If you travel away from home on business, incurring travel expenses, you can deduct your travel expenses. You are considered to be travelling away from home if you are out of your tax home longer than a workday and need to rest while you are away such as stay overnight.

Tax deductibility of travel expenses

The following travel expenses are considered tax deductible:

  • transportation fares travel expenses such as air fares, bus fares, train fares
  • taxi, commuter bus, limousine fares between airport or station and the hotel and between the hotel and your work place out of town
  • baggage and shipping costs for spending your luggage and work related materials
  • car expenses
  • lodging
  • meals and entertainment (there is a limit to the tax deductions)
  • cleaning and laundry expenses
  • telephone and fax expenses
  • tips you pay for any of the above expenses
  • other expenses such as computer rental fees

Note that the tax deductibility of travel expenses rules only apply to business trips. If the trip is for pleasure, then you cannot deduct the travel expenses.