Tax Tip 2022-104: Here’s what taxpayers need to know about business related travel deductions

IRS Tax Tips July 11, 2022
Useful Links: IRS.gov Help For Hurricane Victims News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams/Consumer Alerts The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News IRS Resources Compliance & Enforcement News Contact Your Local IRS Office Filing Your Taxes Forms & Instructions Frequently Asked Questions Taxpayer Advocate Service Where to File IRS Social Media	Issue Number: Tax Tip 2022-104 Here's what taxpayers need to know about business related travel deductions Business travel can be costly. Hotel bills, airfare or train tickets, cab fare, public transportation – it can all add up fast. The good news is business travelers may be able off-set some of those cost by claiming business travel deductions when they file their taxes. Here are some details about these valuable deductions that all business travels should know. Business travel deductions are available when employees must travel away from their tax home or main place of work for business reasons. The travel period must be substantially longer than an ordinary day's work and a need for sleep or rest to meet the demands the work while away. Travel expenses must be ordinary and necessary. They can't be lavish, extravagant or for personal purposes. Employers can deduct travel expenses paid or incurred during a temporary work assignment if the assignment length does not exceed one year. Travel expenses for conventions are deductible if attendance benefits the business and there are special rules for conventions held outside North America. Deductible travel expenses while away from home include the costs of: • 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 to a hotel, 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 which can include an increase in mileage rates. • Lodging and non-entertainment-related 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. Self-employed or farmers with travel deductions • Those who are self-employed can deduct travel expenses on Schedule C ,Form 1040, Profit or Loss From Business, Sole Proprietorship. • Farmers can use Schedule F, Form 1040, Profit or Loss From Farming. Travel deductions for the National Guard or military reserves National Guard or military reserve servicemembers can claim a deduction for unreimbursed travel expenses paid during the performance of their duty. Recordkeeping Well-organized records make it easier to prepare a tax return. Keep records, such as receipts, canceled checks, and other documents that support a deduction. More information: Publication 463, Travel, Gift, and Car Expenses IRS updates per diem guidance for business travelers and their employers Share this tip on social media -- #IRSTaxTip: Here's what taxpayers need to know about business related travel deductions http://ow.ly/YfCF50JQWTe Back to top           Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov. This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message.

 

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