Jan 16, 2025

Know the Rules on Business Travel

Most people know that generally, business travel is tax deductible. But there are a lot of rules and exceptions. Read through for an intro to travel deductions, so you can be sure you don't make any mistakes.

 

Are you working on this year's tax return or planning for the future? Either way, you should know the rules on business travel tax deductions.

According to the IRS, whether someone travels for work once a year or once a month, figuring out travel expense tax write-offs might seem confusing. Fortunately, the IRS has information to help all business travelers properly claim these valuable deductions while avoiding erroneous deductions that could lead to penalties.

The main travel tax details

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.

You can't go over the top and just send the government the bill, however. The IRS reminds travelers that such 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. However, the IRS has special rules for conventions held outside North America.

What is deductible?

According to the IRS, the following are all deductible:

  • 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.

Keep good records

The IRS may question your deductions, so be sure to keep good records. These records will also help you prepare your tax returns. Evidence of your travel may include receipts, canceled checks and other documents that support a deduction, according to the IRS.

Finally, note that this is just an introduction to what can be a complicated topic. Especially if you travel extensively, be sure to work with a qualified tax professional. Meanwhile, you can check further details on the IRS site.

  ©2025


 

MORE RECENT NEWS…


Aug 29, 2025

Silver Workers: No Substitute for Experience

Once, employees approaching retirement age could look forward to a long, relaxing post-work life. For much of the 55+ crowd, this is no longer the case, with many forestalling retirement for as long as possible. Read through for advice on employing silver workers in your organization.


Aug 28, 2025

Show Me the Money: Creating a Salary Policy

For any company to treat their employees with respect and fairness, it needs to have a transparent pay equity policy in place that is shared with all employees. Read through to understand why creating pay equity is beneficial to your organization.


Aug 27, 2025

Understanding the New Tax Break for Overtime Pay

Thanks to a new federal income tax deduction provided by the One Big Beautiful Bill Act, many workers who put in extra hours will be able to keep more of their earnings. Read through to see who qualifies, how much could be saved and what the limits are.


Aug 26, 2025

New Federal Tax Break for Tipped Workers

A new federal law may allow millions of tipped workers to keep more of their earnings starting in 2025. Read through to find out who qualifies, how much could be saved and what to watch for.


Aug 25, 2025

Who Can Work in the US?

Did you know that federal and state laws prohibit the use of immigration or citizenship status when making employment decisions? Read through for insights into how to approach immigration-related matters in a lawful way.


Jul 31, 2025

Lose an Employee but Gain Information

Employers conduct exit interviews with departing employees during the final days of offboarding. If done right, these interviews can be a source of valuable information to help the company improve.




More News & Press can be found in our Archive.