On the Road: Traveling and Taxes

Traveling can be exciting, but it can also be costly. The cost of traveling can be somewhat insulting if the travel is required for work and you don’t have an employer who reimburses your out-of-pocket expenses. But good news: many costs you incur can be deducted from your taxes. Here are a few well-known – and some less well-known – expenses that you can claim while on the road.

It’s worth noting that expenses you intend to claim must be business-related (e.g., if you call your mother long distance from a hotel while on a business trip, you cannot claim the phone call as a “business expense”). Further, your expenses must be necessary, reasonable, and ordinary expenses–in other words lavish expenditures or indulgences are not deductible.

Also, always remember to track your expenses!

• 50% of the cost of meals: why eat fast food, when you can eat reasonable food? This deduction not only makes traveling less expensive, but also makes healthier food choices less cost-prohibitive. Bon apétit!
• Airfare, bus fare, railway fares, and baggage fees: often the most expensive part of traveling, these expenditures are, in fact, deductible.
• Local transportation costs: taxi, Uber, and bus fares are all deductible.
• Expenses of operating and maintaining a car used for business commuting or travel: this includes the cost of gas, oil and fluids, parking fees, tools, even parts and repairs.
• Cleaning and laundry fees: look sharp for business!
• Computer and hardware rental fees: internet cafes are generally a thing of the past in the US, but if you need pay for wifi, or to rent a computer, projector, etc. for your business purposes it is deductible.

Image credit: Yuri Long