Business Travel Expense Deductions – Did You Know?

If you have business income, including earnings from self-employment activities like freelance, independent contract or gig economy work, you may be able to deduct business travel expenses on your tax return. In general, the expenses must relate to travel by you or one of your employees for business (not personal) purposes. The expenses also cannot be extravagant; they should be ordinary and necessary for your trade or business.

Potentially deductible expenses may include:

– Air, train or bus fare, or costs associated with traveling by personal or company car

– Fares (including tips) for taxi or rideshare services between an airport or train station and a hotel, or between a hotel and a work location

– Shipping costs for baggage, display materials or product samples

– Expenses (including tips) for lodging, meals, dry cleaning or laundry services

– Communication costs, such as business mobile phone service roaming charges

The IRS requires business travelers to maintain detailed records of all deductible expenses. A business tax professional can help you identify and document your eligible business travel expenses, so that you can claim your full deduction while staying within the rules.