How and When to Deduct Travel Costs

Entrepreneur Centre

Business in Thunder BayNEW YORK – BUSINESS – When you are self-employed or own your own business, traveling for the job from one location to another is a prerequisite. There are also people that commute to work each day, or commute between two locations within the same work day. Whatever the case might be, the situations in which one is required to travel for work purposes are many. And luckily, work-motivate travel expenses are deductible either fully or partially.

However, there are certain situations in which these deductions apply and some in which they do not. While you may not consider all these laws fair all the time, you need to understand them and apply them. Knowing these situations well can work miracles for your bookkeeping, so make sure to stay informed and keep reading to find out what these specific cases entail.

Situations Where Tax Deductions for Work-Related Travel Expenses Apply

Here are all the situations that allow you to get tax deductions for travel expenses that are related to your job or business.

  • Travelling between two separate workplaces if you have a second job
  • Travelling from your home or secondary work facility to your primary work facility and then back again
  • Shifting places of employment that require you to travel to various work sites during one day
  • Travelling to a secondary location as per a client or boss’ request
  • Having to move tools or other heavy materials around due to a work related issue
  • Using your home as your primary place of employment and then having to move to a separate location in order to perform a client’s request

Situations Where Tax Deductions for Work-Related Travel Expenses Apply

However, there are also particular situations in which you might think that these tax deductions apply, but in fact they do not. Here they are.

  • Driving between your home and place of work more than once per day
  • Going from your business that you run at home to a separate work location where someone else is your boss
  • Working outside of normal business hours (overtime work or extra shifts)
  • Being an on-call employee
  • Performing minor tasks such as picking up mail for work-related issues
  • Lack of public transportation in your area of work

Unfortunately, there are a few situations here that should be tax deductible but in fact aren’t according to US law. Either way, you need to know all these scenarios pretty well when you file for a tax deduction. Knowing how, when and how to apply for deductible off your tax for anything (including work-related travel) is one of the keys to running a successful business or being a successful employee.

Make sure to be aware of these clauses and stipulations at all time in order to keep your work ethic flawless and your books on point.

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