Tax Tip 2023-15: Understanding business travel deductions

IRS Tax Tips

February 7, 2023

Issue Number:?Tax Tip 2023-15

Understanding business travel deductions

Whether someone travels for work once a year or once a month, figuring out travel expense tax write-offs might seem confusing. The IRS has information to help all business travelers properly claim these valuable deductions.??

Here are some tax details all business travelers should know
Business travel deductions are available when employees must travel away from their?tax home?or?main place of work?for business reasons. A taxpayer is traveling away from home if they are away for longer than an ordinary day?s work and they need to sleep to meet the demands of their 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. There are special rules for conventions held?outside North America.

Deductible travel expenses include:

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.

Self-employed individuals 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.

Share this tip on social media -- #IRSTaxTip: Understanding business travel deductions.?http://ow.ly/GCuA50MKYke?

?? ?? ?

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.

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page. You will need to use your email address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com.

This service is provided to you at no charge by the Internal Revenue Service (IRS).

This email was sent to [email protected] by: Internal Revenue Service (IRS) ? Internal Revenue Service ? 1111 Constitution Ave. N.W. ? Washington DC 20535

Useful Links:

News Essentials

The Newsroom Topics

IRS Resources

Issue Number:?Tax Tip 2023-15