Can I Write This Off?

Can I deduct travel costs for work?

TL;DR

Yes, you can deduct travel costs for work if they are ordinary and necessary expenses incurred while traveling away from home for business purposes.

Detailed Answer

Travel costs for work are deductible if they are directly related to your business or trade. This includes transportation, lodging, meals, and other expenses incurred while traveling away from your tax home overnight. However, personal travel expenses or costs incurred for personal reasons are not deductible. For example, if you attend a conference related to your business, the travel costs to and from the conference location, as well as lodging and meals during the conference, are deductible. If you extend your stay for a vacation, the additional costs are not deductible.

Where to Put It on the Tax Form

Schedule C (Form 1040) for sole proprietors, or Form 2106 for employees if reimbursed under an accountable plan.

Real World Example

A freelance graphic designer travels from New York to Los Angeles to meet with a client. The cost of the flight, hotel, and meals during the trip are deductible as business travel expenses.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible amount, sum up all qualifying travel expenses incurred during the business trip, ensuring to separate any personal expenses.

Audit Risk & Documentation Tips

Keep detailed records of all travel expenses, including receipts, itineraries, and a log of business activities conducted during the trip. Maintain clear documentation to distinguish between business and personal expenses to minimize audit risk.

IRS Reference

IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses

Relevant Industries

FreelancersSmall BusinessConsultantsSales Professionals