Tax Facts

Are Traveling Expenses Tax Deductible?

In general, a taxpayer may deduct ordinary and necessary traveling expenses incurred while away from home in the conduct of a trade or business. Internal Revenue Code Section 162(a)(2) and Treasury Regulation Section 1.162-2 allow for a deduction when individuals are away from home if it is reasonable for them to need to sleep or rest while their duties require them to be away from the general area of their tax home for a period substantially longer than an ordinary workday.

It doesn't always have to be that you are away for more than 24 hours. In some cases, travel expenses may be deductible even though you are away for part of the day. So, for example, a pilot that flies a charter trip and needs to rest because of duty time limits.

A member of the U.S. Armed Forces is not away from home while at the individual's permanent duty station. However, members of the National Guard and Reserves can deduct qualifying travel expenses as an above the line adjustment to income if they are attending meetings, drill or AT. There are other qualifiers to those expenses, and only if they are not paid for and/or reimbursed by the military. Call your tax advisor if you are unsure if your expenses are deductible.

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