miscellaneous travel expenses examples

How to Deduct Travel Expenses (with Examples)

Reviewed by

November 3, 2022

This article is Tax Professional approved

Good news: most of the regular costs of business travel are tax deductible.

Even better news: as long as the trip is primarily for business, you can tack on a few vacation days and still deduct the trip from your taxes (in good conscience).

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Even though we advise against exploiting this deduction, we do want you to understand how to leverage the process to save on your taxes, and get some R&R while you’re at it.

Follow the steps in this guide to exactly what qualifies as a travel expense, and how to not cross the line.

The travel needs to qualify as a “business trip”

Unfortunately, you can’t just jump on the next plane to the Bahamas and write the trip off as one giant business expense. To write off travel expenses, the IRS requires that the primary purpose of the trip needs to be for business purposes.

Here’s how to make sure your travel qualifies as a business trip.

1. You need to leave your tax home

Your tax home is the locale where your business is based. Traveling for work isn’t technically a “business trip” until you leave your tax home for longer than a normal work day, with the intention of doing business in another location.

2. Your trip must consist “mostly” of business

The IRS measures your time away in days. For a getaway to qualify as a business trip, you need to spend the majority of your trip doing business.

For example, say you go away for a week (seven days). You spend five days meeting with clients, and a couple of days lounging on the beach. That qualifies as business trip.

But if you spend three days meeting with clients, and four days on the beach? That’s a vacation. Luckily, the days that you travel to and from your location are counted as work days.

3. The trip needs to be an “ordinary and necessary” expense

“Ordinary and necessary ” is a term used by the IRS to designate expenses that are “ordinary” for a business, given the industry it’s in, and “necessary” for the sake of carrying out business activities.

If there are two virtually identical conferences taking place—one in Honolulu, the other in your hometown—you can’t write off an all-expense-paid trip to Hawaii.

Likewise, if you need to rent a car to get around, you’ll have trouble writing off the cost of a Range Rover if a Toyota Camry will get you there just as fast.

What qualifies as “ordinary and necessary” can seem like a gray area at times, and you may be tempted to fudge it. Our advice: err on the side of caution. if the IRS chooses to investigate and discovers you’ve claimed an expense that wasn’t necessary for conducting business, you could face serious penalties .

4. You need to plan the trip in advance

You can’t show up at Universal Studios , hand out business cards to everyone you meet in line for the roller coaster, call it “networking,” and deduct the cost of the trip from your taxes. A business trip needs to be planned in advance.

Before your trip, plan where you’ll be each day, when, and outline who you’ll spend it with. Document your plans in writing before you leave. If possible, email a copy to someone so it gets a timestamp. This helps prove that there was professional intent behind your trip.

The rules are different when you travel outside the United States

Business travel rules are slightly relaxed when you travel abroad.

If you travel outside the USA for more than a week (seven consecutive days, not counting the day you depart the United States):

You must spend at least 75% of your time outside of the country conducting business for the entire getaway to qualify as a business trip.

If you travel outside the USA for more than a week, but spend less than 75% of your time doing business, you can still deduct travel costs proportional to how much time you do spend working during the trip.

For example, say you go on an eight-day international trip. If you spend at least six days conducting business, you can deduct the entire cost of the trip as a business expense—because 6 is equivalent to 75% of your time away, which, remember, is the minimum you must spend on business in order for the entire trip to qualify as a deductible business expense.

But if you only spend four days out of the eight-day trip conducting business—or just 50% of your time away—you would only be able to deduct 50% of the cost of your travel expenses, because the trip no longer qualifies as entirely for business.

List of travel expenses

Here are some examples of business travel deductions you can claim:

  • Plane, train, and bus tickets between your home and your business destination
  • Baggage fees
  • Laundry and dry cleaning during your trip
  • Rental car costs
  • Hotel and Airbnb costs
  • 50% of eligible business meals
  • 50% of meals while traveling to and from your destination

On a business trip, you can deduct 100% of the cost of travel to your destination, whether that’s a plane, train, or bus ticket. If you rent a car to get there, and to get around, that cost is deductible, too.

The cost of your lodging is tax deductible. You can also potentially deduct the cost of lodging on the days when you’re not conducting business, but it depends on how you schedule your trip. The trick is to wedge “vacation days” in between work days.

Here’s a sample itinerary to explain how this works:

Thursday: Fly to Durham, NC. Friday: Meet with clients. Saturday: Intermediate line dancing lessons. Sunday: Advanced line dancing lessons. Monday: Meet with clients. Tuesday: Fly home.

Thursday and Tuesday are travel days (remember: travel days on business trips count as work days). And Friday and Monday, you’ll be conducting business.

It wouldn’t make sense to fly home for the weekend (your non-work days), only to fly back into Durham for your business meetings on Monday morning.

So, since you’re technically staying in Durham on Saturday and Sunday, between the days when you’ll be conducting business, the total cost of your lodging on the trip is tax deductible, even if you aren’t actually doing any work on the weekend.

It’s not your fault that your client meetings are happening in Durham—the unofficial line dancing capital of America .

Meals and entertainment during your stay

Even on a business trip, you can only deduct a portion of the meal and entertainment expenses that specifically facilitate business. So, if you’re in Louisiana closing a deal over some alligator nuggets, you can write off 50% of the bill.

Just make sure you make a note on the receipt, or in your expense-tracking app , about the nature of the meeting you conducted—who you met with, when, and what you discussed.

On the other hand, if you’re sampling the local cuisine and there’s no clear business justification for doing so, you’ll have to pay for the meal out of your own pocket.

Meals and entertainment while you travel

While you are traveling to the destination where you’re doing business, the meals you eat along the way can be deducted by 50% as business expenses.

This could be your chance to sample local delicacies and write them off on your tax return. Just make sure your tastes aren’t too extravagant. Just like any deductible business expense, the meals must remain “ordinary and necessary” for conducting business.

How Bench can help

Surprised at the kinds of expenses that are tax-deductible? Travel expenses are just one of many unexpected deductible costs that can reduce your tax bill. But with messy or incomplete financials, you can miss these tax saving expenses and end up with a bigger bill than necessary.

Enter Bench, America’s largest bookkeeping service. With a Bench subscription, your team of bookkeepers imports every transaction from your bank, credit cards, and merchant processors, accurately categorizing each and reviewing for hidden tax deductions. We provide you with complete and up-to-date bookkeeping, guaranteeing that you won’t miss a single opportunity to save.

Want to talk taxes with a professional? With a premium subscription, you get access to unlimited, on-demand consultations with our tax professionals. They can help you identify deductions, find unexpected opportunities for savings, and ensure you’re paying the smallest possible tax bill. Learn more .

Bringing friends & family on a business trip

Don’t feel like spending the vacation portion of your business trip all alone? While you can’t directly deduct the expense of bringing friends and family on business trips, some costs can be offset indirectly.

Driving to your destination

Have three or four empty seats in your car? Feel free to fill them. As long as you’re traveling for business, and renting a vehicle is a “necessary and ordinary” expense, you can still deduct your business mileage or car rental costs even when others join you for the ride.

One exception: If you incur extra mileage or “unnecessary” rental costs because you bring your family along for the ride, the expense is no longer deductible because it isn’t “necessary or ordinary.”

For example, let’s say you had to rent an extra large van to bring your children on a business trip. If you wouldn’t have needed to rent the same vehicle to travel alone, the expense of the extra large van no longer qualifies as a business deduction.

Renting a place to stay

Similar to the driving expense, you can only deduct lodging equivalent to what you would use if you were travelling alone.

However, there is some flexibility. If you pay for lodging to accommodate you and your family, you can deduct the portion of lodging costs that is equivalent to what you would pay only for yourself .

For example, let’s say a hotel room for one person costs $100, but a hotel room that can accommodate your family costs $150. You can rent the $150 option and deduct $100 of the cost as a business expense—because $100 is how much you’d be paying if you were staying there alone.

This deduction has the potential to save you a lot of money on accommodation for your family. Just make sure you hold on to receipts and records that state the prices of different rooms, in case you need to justify the expense to the IRS

Heads up. When it comes to AirBnB, the lines get blurry. It’s easy to compare the cost of a hotel room with one bed to a hotel room with two beds. But when you’re comparing significantly different lodgings, with different owners—a pool house versus a condo, for example—it becomes hard to justify deductions. Sticking to “traditional” lodging like hotels and motels may help you avoid scrutiny during an audit. And when in doubt: ask your tax advisor.

So your trip is technically a vacation? You can still claim any business-related expenses

The moment your getaway crosses the line from “business trip” to “vacation” (e.g. you spend more days toasting your buns than closing deals) you can no longer deduct business travel expenses.

Generally, a “vacation” is:

  • A trip where you don’t spend the majority of your days doing business
  • A business trip you can’t back up with correct documentation

However, you can still deduct regular business-related expenses if you happen to conduct business while you’re on vacay.

For example, say you visit Portland for fun, and one of your clients also lives in that city. You have a lunch meeting with your client while you’re in town. Because the lunch is business related, you can write off 50% of the cost of the meal, the same way you would any other business meal and entertainment expense . Just make sure you keep the receipt.

Meanwhile, the other “vacation” related expenses that made it possible to meet with this client in person—plane tickets to Portland, vehicle rental so you could drive around the city—cannot be deducted; the trip is still a vacation.

If your business travel is with your own vehicle

There are two ways to deduct business travel expenses when you’re using your own vehicle.

  • Actual expenses method
  • Standard mileage rate method

Actual expenses is where you total up the actual cost associated with using your vehicle (gas, insurance, new tires, parking fees, parking tickets while visiting a client etc.) and multiply it by the percentage of time you used it for business. If it was 50% for business during the tax year, you’d multiply your total car costs by 50%, and that’d be the amount you deduct.

Standard mileage is where you keep track of the business miles you drove during the tax year, and then you claim the standard mileage rate .

The cost of breaking the rules

Don’t bother trying to claim a business trip unless you have the paperwork to back it up. Use an app like Expensify to track business expenditure (especially when you travel for work) and master the art of small business recordkeeping .

If you claim eligible write offs and maintain proper documentation, you should have all of the records you need to justify your deductions during a tax audit.

Speaking of which, if your business is flagged to be audited, the IRS will make it a goal to notify you by mail as soon as possible after your filing. Usually, this is within two years of the date for which you’ve filed. However, the IRS reserves the right to go as far back as six years.

Tax penalties for disallowed business expense deductions

If you’re caught claiming a deduction you don’t qualify for, which helped you pay substantially less income tax than you should have, you’ll be penalized. In this case, “substantially less” means the equivalent of a difference of 10% of what you should have paid, or $5,000—whichever amount is higher.

The penalty is typically 20% of the difference between what you should have paid and what you actually paid in income tax. This is on top of making up the difference.

Ultimately, you’re paying back 120% of what you cheated off the IRS.

If you’re slightly confused at this point, don’t stress. Here’s an example to show you how this works:

Suppose you would normally pay $30,000 income tax. But because of a deduction you claimed, you only pay $29,000 income tax.

If the IRS determines that the deduction you claimed is illegitimate, you’ll have to pay the IRS $1200. That’s $1000 to make up the difference, and $200 for the penalty.

Form 8275 can help you avoid tax penalties

If you think a tax deduction may be challenged by the IRS, there’s a way you can file it while avoiding any chance of being penalized.

File Form 8275 along with your tax return. This form gives you the chance to highlight and explain the deduction in detail.

In the event you’re audited and the deduction you’ve listed on Form 8275 turns out to be illegitimate, you’ll still have to pay the difference to make up for what you should have paid in income tax—but you’ll be saved the 20% penalty.

Unfortunately, filing Form 8275 doesn’t reduce your chances of being audited.

Where to claim travel expenses

If you’re self-employed, you’ll claim travel expenses on Schedule C , which is part of Form 1040.

When it comes to taking advantage of the tax write-offs we’ve discussed in this article—or any tax write-offs, for that matter—the support of a professional bookkeeping team and a trusted CPA is essential.

Accurate financial statements will help you understand cash flow and track deductible expenses. And beyond filing your taxes, a CPA can spot deductions you may have overlooked, and represent you during a tax audit.

Learn more about how to find, hire, and work with an accountant . And when you’re ready to outsource your bookkeeping, try Bench .

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miscellaneous travel expenses examples

UNCLASSIFIED (U)

allowable travel and miscellaneous expenses

(CT:LOG-392;   03-20-2024) (Office of Origin:  A/LM)

14 FAM 561  POLICY AND AUTHORITIES

14 FAM 561.1  Policy

(CT:LOG-381;   09-26-2023)

It is the general policy of the U.S. Government that less-than-premium-class accommodations must be used for all modes of passenger transportation.  The policies in 14 FAM 567 govern the use of common carrier accommodations and apply to travel while on official U.S. Government business.

14 FAM 561.2  Exercising Care in Incurring Expenses

An employee traveling on official business is expected to exercise the same care in incurring expenses that a prudent person would exercise if traveling on personal business and expending personal funds.  Excess costs, circuitous routes, delays, or luxury accommodations and services unnecessary or unjustified in the performance of official business are not acceptable under this standard.  Employees will be responsible for excess costs and any additional expenses incurred for personal preference or convenience.

14 FAM 561.3  Authorities

In addition to the authorities listed in 14 FAM 511.4 , the following authorities apply:

(1)  State Department Delegation of Authority No. 462, dated January 9, 2019, delegates the Secretary of State's travel authority to the Under Secretary and Deputy Under Secretary of State for Management;

(2)  22 U.S.C. 4081 is the travel payment authorization provision of the Foreign Service Act that provides for a domestic relocation allowance;

(3)  The Federal Travel Regulation (FTR) 41 CFR 301.10-124 addresses coach-class seating upgrade programs;

(4) FTR 41 CFR Part 301-13 addresses travel of employees with special needs, and

(5)  The General Services Agency's (GSA) FTR Bulletin FTR 09-02, dated 31 Dec. 2008, clarifies the seat choice options and other miscellaneous fees Federal agencies may reimburse their employees while on official travel.

14 FAM 562  EXPENSES ALLOWABLE

14 FAM 562.1  Miscellaneous Expenses not Covered by Per Diem

(CT:LOG-392;   03-20-2024)

a. The following travel expenses, when actually incurred and necessary, can be itemized and reimbursed over and above the per diem allowance for lodging and meals and incidental expenses (M&IE):

(1)  Official telephone calls and faxes in connection with official business; internet access fees while performing official business.  Reimbursement for expenses must be authorized in advance of travel on the travel authorization;

(2)  Commissions for conversion of currency; fees to obtain travelers checks, money orders and certified checks; transaction fees for use of ATMs and other vendors such as hotels when using a U.S. Government contractor-issued charge card.  For locally employed (LE) staff who use their personal charge cards and for other travelers who the Department has determined may not be issued a U.S. Government charge card or who have been authorized to use their personal charge cards for official travel, transaction fees for the use of ATMs and other vendors such as hotels may be allowed, if stated on the travel authorization in advance of travel;

(3)  Lodging taxes in domestic and nonforeign areas (see FTR, 41 CFR 301-11.27); energy surcharge and lodging resort fees when such fees are not optional;

      NOTE :  Lodging taxes and mandatory fees in foreign areas are incorporated into the per diem rate for lodging for those areas.  In order to be fully reimbursed, the sum total cost of lodging plus mandatory taxes and fees in foreign areas must be within the prescribed lodging component of per diem for that area;

(4)  Fees in connection with the issuance of passports and visas and other legally required costs; photographs for passports and visas; certificates of birth, health and identity, and affidavits attesting thereto; foreign country entrance and exit fees;

(5)  Inoculations that cannot be obtained for free through a Federal dispensary (reimbursement must be authorized on the travel authorization before travel begins).  For yellow fever inoculations, there is no requirement for prior authorization for reimbursement; and

(6)  Expenses associated with the transport of human milk expressed by an employee or Eligible Family Member (EFM) while on TDY, approved medical travel, or on PCS travel (including for the authorized PCS travel to post for new infants following a parent's authorized obstetrical medevac) in accordance with the FTR, 41 CFR 301-13.2, up to a maximum of $1000.  Reimbursement for expenses must be authorized in advance on the travel authorization and the traveler must submit all receipts, regardless of amount, with the travel voucher.  Expenses may include commercial shipping fees, excess baggage, disposable storage bags, cold shipping packages, refrigeration, transport, and non-durable containers.  Durable containers that are not reimbursable include  canvas, polypropylene, and  soft- or hard-sided containers . For special cases of TDY travel where expenses exceed $1000, the traveler may receive reimbursement above $1000 only when authorized in writing by the EX Director (or agency equivalent) of the funding bureau in advance of travel.  Such authorization must also accompany the travel authorization and the travel voucher.  Travelers are ultimately responsible for arranging all transport of human milk and for handling all related logistics.  See 3 FAM 3860 for more information on the Department’s lactation policy.

b. For Agriculture only :  Foreign Agricultural Service allows for reimbursement of authorized telephone calls of a personal nature during official travel.  For foreign travel, the maximum reimbursement is $15.00 per day.  For domestic travel, the maximum reimbursement is $5.00 per day.  The maximum aggregate amount that may be approved for each travel period (i.e., consecutive days of official travel) cannot exceed the amount equal to the daily reimbursement rate multiplied by the number of lodging nights.  This reimbursement is not an automatic claim and should only be reflected on a voucher if actual expenses were incurred while in a TDY travel status.

c.  For USAID only :  ADS 633.3.6.1 Financial Management Aspects of TDY, and ADS 549, Telecommunications Management, defines some telephone calls to family as “Official” and allows for reimbursement of those telephone calls when an employee is traveling on government business.  See those ADS chapters for further details.

14 FAM 562.2  Transportation Expenses

a. The following transportation expenses, when actually incurred and necessary, can be itemized and reimbursed if not paid directly by the U.S. Government:

(1)  Travel on railroads, aircraft, sailing vessels, buses, streetcars, and other usual means of common carrier conveyance;

(2)  Transfer, storage, and checking of baggage necessary for the purpose of the official travel;

(3)  Charges for transfer, storage, checking, and porters' fees and tips for handling U.S. Government property carried by the traveler;

(4)  Transportation charges for authorized excess official baggage;

(5)  Shipments by express or freight of U.S. Government property not classed as baggage and not admissible to the mail (normally made on U.S. Government bills-of-lading (GBLs) where feasible);

(6)  Packing and necessary preparation for shipment, cost of unboxing at destination, and necessary cartage of unaccompanied baggage or personal effects, or baggage accompanying traveler;

(7)  Hire of a boat, automobile, taxicab, aircraft, or other conveyance when authorized or approved as advantageous to the U.S. Government and when employee is engaged in official business within or outside employee's post of duty;

(8)  Daily travel to procure meals or lodging at the nearest available place when such cannot be procured at a temporary duty station; and

(9)  Transportation by bus, subway, streetcar, taxicab, transportation network company (TNC), or innovative mobility technology company (IMTC) (see 14 FAM 511.3 for definitions):

(a)  Between places of business;

(b)  Between place of lodging and place of business at a temporary duty station;

(c)  Between place of lodging or employee’s home and common carrier transportation terminal in connection with official travel;

(d)  From employee's office to a common carrier transportation terminal on the day of departure from the office on an official trip requiring at least one night's lodging.

b. Use of taxicabs, TNCs, or IMTCs (see 14 FAM 511.3 for definitions):

(1)  When suitable common carrier transportation is available for travel between points other than those listed above, but the traveler elects to use a taxicab or TNC, or IMTC, detailed remarks noting the circumstances must be furnished on the travel voucher;

(2)  Taxicab, TNC, or IMTC reimbursement in excess of $75.00 plus tip must be supported by a receipt along with a statement justifying the use of such conveyance;

(3)  The maximum tip allowable under this section is 20 percent of the reimbursable fare;

(4)  In lieu of the use of a taxicab, TNC, or IMTC as provided in this section, payment on a mileage basis at the approved rate, as described in 14 FAM 566.2-2 , is allowed for the mileage of a privately owned automobile used for a purpose detailed above, provided that the amount of reimbursement for mileage does not exceed the estimated taxicab, TNC, or IMTC cost, including allowable tip, for transportation between the applicable points;

(5)  Membership or application fees, tickets, fines, cancellation fees or fees charged for waiting for the traveler, or other such expenses associated with TNCs or IMTCs are not reimbursable.  Only actual usage charges, booking charges, and reservation charges made directly with the TNC or ITMC (not a third-party company) are eligible for reimbursement; and

(6)  Travelers may not know prior to beginning a trip what ground transportation options will be available at a particular location.  Thus, travel authorizations that contain advance authorization for a taxi, a TNC, or an IMTC are considered to confer authority to use any or all of those ground transportation options.  When completing a travel voucher, however, it is necessary to specify whether a taxi, TNC, or IMTC was actually utilized for each instance of ground transportation in order to facilitate preparation of certain congressionally mandated reports.

14 FAM 562.3  Unaccompanied Minor Charges

Most airlines provide a service for children traveling unaccompanied on their airline without the presence of a legal guardian, but fees for this service differ by airplane.  This charge is reimbursable when:

(1)  The EFM child (16 years of age or younger) is the only individual entitled to travel at U.S. Government expense for the type of official travel authorized (e.g., travel of children of separated families, educational travel, educational allowance, or on authorized or ordered departure); and

(2)  The child is engaged in direct travel with no deviation from the authorized itinerary; and

(3)  The fee is authorized on the travel authorization in advance of travel.

14 FAM 563  EXPENSES NOT ALLOWABLE

14 FAM 563.1  Items Included in Per Diem

The following items are included within the lodging and/or meals and incidentals (M&IE) portions of the per diem allowance (see definition in 14 FAM 511.3 ) and may not be paid, itemized, or reimbursed separately:

(1)  Charges for lodging, including:

(a)  Overnight sleeping facilities;

(b)  Personal use of room and bath during daytime;

(c)  Telephone access fee; and

(d)  Service charges for fans, televisions, air conditioning, heaters, microwaves, and refrigerators in rooms;

(2)  Charges for meals, including:

(a)  Expenses for breakfast, lunch, and dinner; and

(b)  Related tips and taxes;

(3)  Incidental expenses, including:

(a)  Fees and tips given to waiters, porters, baggage handlers, bellhops, hotel personnel, restaurant staff, and similar employees;

(b)  Transportation between place of lodging or business and places where meals are taken, except as specified in 14 FAM 562.2 , subparagraph a(8); and

(c)  Bottled water;

(4)  Complimentary meals provided by common carriers or hotels (e.g., complimentary breakfast meals on airplanes, etc.) have no impact on per diem rates paid per FTR, 41 CFR 301-11.17.

14 FAM 563.2  Personal and Other Expenses

Costs of a personal nature are not reimbursable, such as:

(1)  Personal telephone calls or faxes, including messages, requesting leave, inquiring as to status of salary, expense vouchers, advance of funds, and reply thereto, or any other matter of personal nature.  This section does not apply to Agriculture or USAID employees (see exceptions for Agriculture employees in 14 FAM 562.1 , paragraph b, and for USAID employees in 14 FAM 562.1 , paragraph c);

(2)  Internet access fees for conducting personal business; internet service provider (ISP) fees (e.g., monthly charges for satellite, fiber, cable, or DSL internet access);

(3)  Transaction fees for use of ATMs and other vendors, such as hotels, with a personal charge card except when authorized in accordance with 14 FAM 562.1 , subparagraph a(2);

(4)  Laundry, dry cleaning, and pressing when traveling OCONUS or when traveling in CONUS for less than four consecutive nights;

(5)  Alcoholic beverages;

(6)  Entertainment expenses;

(7)  Any expenses incurred for other persons; and

(8)  Miscellaneous service fees (i.e., administrative, booking, and third-party fees) resulting from booking transportation or lodging outside a government-contracted travel management center or government lodging program (e.g., FedRooms).

14 FAM 564  Fare types

14 FAM 564.1  Unrestricted Fare Policy

(CT:LOG-381;   09-26-2023) (State and USAID)

a. In general and when possible, the Department utilizes the lowest-cost unrestricted fares available for travel between authorized origin and destination, respecting the terms of the General Services Administration (GSA) city-pair program, for all official travel.

b. An individual may request the purchase of a restricted or penalty fare for official travel based on personal convenience (e.g., taking an indirect route for personal reasons or wishing to travel in a class of service other than the one authorized), but the individual is responsible for any and all additional costs and/or penalties incurred in connection with such fares regardless of whether those costs are due to official or personal reasons.  See 14 FAM 561 for an employee's responsibility to exercise due care.

c.  When an individual is authorized an unrestricted fare but engages in indirect (cost-constructed) travel and elects to use a restricted fare, the cost of that restricted fare, in the class of service and the route used by the traveler, must be compared to the cost of an unrestricted fare along the authorized route in the authorized class of service in order to determine whether the individual’s deviation results in an additional cost to the U.S. Government:

(1)  If an additional cost would be incurred because of the individual’s decision to engage in indirect travel and/or travel in a class of service other than the one authorized, the individual must pay, to the TMC or air carrier issuing the ticket, the difference in fare between the restricted fare elected by the traveler and the unrestricted fare that would have been purchased by the U.S. Government; and

(2)  If no additional cost would be incurred, the U.S. Government may purchase the restricted fare along the indirect route and/or in the class of service other than the one authorized.  Any cost saving associated with the purchase of a restricted fare in this case is not transferrable to the traveler, and a fare saving may not be used to offset change or cancellation fees incurred as a result of the individual’s decision to use a restricted fare.

d. Whenever a cost comparison is made, documentation of the specific flight itineraries and their respective costs must be retained and included in the travel authorization for future reference and to meet auditing requirements.

14 FAM 564.2  Restricted Fare Policy

a. Restricted penalty fares should be authorized for official travel only when their use is practical and economical to the U.S. Government.  Round-trip tickets with such fares should be authorized only when, based on the journey as planned, the traveler knows or reasonably anticipates that such tickets will be utilized in accordance with their restrictions (see 14 FAM 542 for details of contract city-pair fares).  The use of prohibited ticketing practices, such as “throw-away,” “hidden city,” or “back-to-back” ticketing, is not permitted for any part of either authorized or cost constructed travel itineraries because those tactics violate air carrier contracts of carriage.

b. A mission or bureau has the option of developing a policy requiring the use of restricted, penalty fares subject to the conditions set out in paragraph a of this section.  The authorizing mission or bureau will assume financial responsibility for any penalties associated with these fares, should changes or cancellations be required by the U.S. Government.  The employee will be responsible for any penalties incurred for personal convenience.

c.  If a mission or bureau chooses to use restricted, penalty fares, the mission or bureau must provide the travel management center with a written policy for the use of these fares and the appropriate fare type (restricted or unrestricted) must be indicated in the remarks of each travel authorization.  At posts where a travel management center does not exist, the written policy must be provided to the travel section in the general services office.

d. When an employee is authorized a restricted fare under 14 FAM 564.2 , paragraph b, and engages in indirect (cost-constructed) travel also using a restricted fare, penalties incurred due to changes or cancellations required by the U.S. Government are reimbursable up to the cost that would have been incurred for similar modifications to the authorized routing.  The employee will be responsible for any penalties incurred for personal reasons.

14 FAM 564.3  Disposition of Airline Promotional Items

a. All Department employees, their dependents, and others whose travel is funded by the Department may retain for personal use promotional items (i.e., frequent flyer miles, upgrades, access to carrier lounges) earned from official travel under terms available to the general public and at no extra cost to the U.S. Government.

b. Travelers may accept free upgrades of services to business-class or first-class accommodations if they are obtained under terms available to the general public and at no extra cost to the U.S. Government.

c.  Travelers may redeem frequent flier miles (or use personal funds) to upgrade to business or first-class accommodations when performing official travel.

d. It is the responsibility of each traveler to communicate directly with a service provider to establish his or her frequent travel promotional benefits account.  Costs associated with establishing this account are to be paid by the traveler and are not a reimbursable expense.

e. Travelers need not report as taxable income promotional items obtained from official travel.

14 FAM 564.4  Compensation Received from Airlines for Denied Boarding

a. Voluntary :  A traveler may keep payments from a carrier for voluntarily vacating a transportation seat.  However, no additional expenses (per diem or miscellaneous reimbursable) may be paid because of the traveler’s delay.  Additional travel expenses incurred because of voluntarily giving up a seat are the traveler’s financial responsibility.

b. Involuntary :  If a traveler is involuntarily denied a transportation seat, the traveler enters an onward travel status for per diem and miscellaneous travel expense reimbursement.  Any monetary compensation (including meal and/or lodging vouchers) for the denied seat belongs to the U.S. Government.

14 FAM 565  CANCELED RESERVATIONS

14 FAM 565.1  Service/Cancellation Expenses

When a train, sailing vessel, or hotel reservation is canceled because of unavoidable, nonpersonal delay or because of official necessity, the cost of a service fee or cancellation expense charged by the service provider is allowed.  Fees paid for cancellations of reservations for personal reasons or avoidable delays in notifying the service provider are not reimbursable.

14 FAM 565.2  Liquidated Damage Payments to Traveler

a. When carrier tariffs require liquidated damage payments to travelers for the carrier's failure to provide confirmed reserved space, such payments by the liable carrier are to be by check, made payable to the "Treasurer of the United States."  In no case is the traveler permitted to accept from the carrier a check showing the traveler as payee.

b. The traveler is to acknowledge receipt of the check and submit a copy of the acknowledgment and the check with travel voucher.  Payment of denied boarding compensation to the Treasurer of the United States is a U.S. Government requirement and is no reflection on the carrier (see 4 FAM 470 ).

14 FAM 566  TRAVEL BY PRIVATELY OWNED VEHICLE OR PRIVATELY OWNED CONVEYANCE

14 FAM 566.1  Policy

a. Travel by common carrier is generally considered the most advantageous method to perform official travel.  Other methods of transportation may be authorized if they are determined to be more advantageous to the U.S. Government.  A determination that another method of transportation is more advantageous to the U.S. Government than common carrier transportation will not be made based on personal preference or inconvenience to the traveler.

b. In determining whether the use of a privately owned vehicle is advantageous to the U.S. Government, consider:

(1)  The feasibility of using common carrier transportation or U.S. Government-owned conveyances based on availability, suitability of schedules, and other applicable requirements;

(2)  The total cost to the government, including per diem, overtime, lost work time, actual transportation costs, total distance of travel, number of points visited on official travel, the number of travelers, and energy conservation;

(3)  The advantages resulting from the more expeditious transactions of the public business, economy, and employee performance effectiveness; and

(4)  Any other advantages and/or disadvantages to the U.S. Government in the particular case.

c.  The authority to travel by privately owned vehicle (POV) contained in this section is applicable to the employee and/or other family member(s) authorized to travel.  The vehicle to be used must be the property of the employee or family member prior to the initiation of travel and must be driven or shipped to the ultimate destination stipulated in the travel orders.  Only such vehicles as are eligible for shipment at U.S. Government expense are authorized to be driven on a mileage per diem basis under this provision.

d. Any reimbursement for travel by POV, under the mileage (see 14 FAM 566.2-1 ) per diem basis authorized by this section is limited to the actual mileage between authorized points on a direct route plus related per diem, not to exceed 10 days to each authorized destination.

14 FAM 566.2  Use Advantageous to the U.S. Government

14 FAM 566.2-1  General

(CT:LOG-388;   01-19-2024)

a. When the authorized travel from origin to destination (combined with TDY, consultation and/or home leave, as applicable) can be performed entirely using a privately owned vehicle (POV), such use may be authorized.

b. Travel by POV to separation address in the United States, when not otherwise covered under 14 FAM 566.1 , is hereby authorized from the port of discharge of the vehicle to the separation address via consultation point (as applicable).  In accordance with 14 FAM 618.4 , however, this authorization does not apply to vehicles acquired en route to a separation point.

c.  When an employee's vehicle is authorized emergency storage in accordance with 14 FAM 626 , an authorizing officer may determine that it is advantageous for the vehicle to be driven all or part of the distance to the designated storage point.

d. An employee who acquires a vehicle at a point on a direct route to the post of assignment abroad, and who has not previously shipped a vehicle under the provisions of the authorizing travel orders, may drive the POV to the destination.  The point of acquisition is considered the point of origin.  In no case may the cost of driving the vehicle from where it is acquired exceed the cost to the U.S. Government had the vehicle been shipped from the point of origin specified in the travel authorization to the authorized destination.

e. Travel by a POV is considered advantageous to the U.S. Government when the authorized or actual point of origin and the final destination are:

(1)  Connected by a hard-surface, all-weather highway or by vehicular ferry, or both (see 14 FAM 615.1 ); and

(2)  Within the continental United States or Canada or one of the following Mexican border posts:

(a)  Ciudad Juárez;

(b)  Matamoros;

(c)  Nuevo Laredo;

(d)  Tijuana; or

(e)  Nogales.

f.  When use of a rental vehicle in the United States is authorized, reimbursement for rental fees and actual expenses for fuel (gas, diesel, electricity, etc.) and tolls is authorized. U.S. Government-contracted rental vehicle services should be used whenever possible.  Collision damage waiver (CDW) is included in the contract amount and should not be accepted at extra cost.  When renting from companies not on the U.S. Government contracting list, travelers will not be reimbursed for CDW.  However, payments for damages to a rental car company or reimbursement to the employee, up to the deductible amount contained in the rental contract, are authorized, providing the employee was acting within the scope of his or her employment at the time of the incident.

g. When use of a rental vehicle abroad is authorized, reimbursement may include rental fees, including value added tax (VAT), and actual expenses for fuel and tolls.  U.S. Government-contracted rental vehicle services should be used whenever possible.  The contract rate includes CDW, VAT, and unlimited mileage. When renting from companies not on the U.S. Government contracting list, CDW, VAT, and unlimited mileage will not usually be included.  CDW is a reimbursable expense abroad.  In addition, payments for damages to a rental car company or reimbursement to the employee are authorized up to the deductible amount contained in the rental contract, providing the employee was acting within the scope of his or her employment at the time of the incident.

h. When use of a rental vehicle is authorized for official travel, the least expensive “compact” car available must be used unless one of the following exceptions for another class of vehicle applies and is indicated on the travel authorization:

(1)  When use of other than a compact car is necessary to accommodate a medical disability or other special need, and all applicable requirements set forth in 41 CFR 301-10.450(c)(1) have been met;

(2)  When additional room is required to accommodate multiple employees authorized to travel together in the same rental vehicle;

(3)  When security circumstances (as defined in writing by DS or the RSO) require a larger vehicle;

(4)  When necessary for other safety reasons, such as during severe weather or having to travel on rough or difficult terrain;

(5)  When travelers must carry a large amount of U.S. Government material incident to their official business, and a compact rental vehicle does not contain sufficient space; or

(6)  When the cost of other than a compact car is less than or equal to the cost of the least expensive compact car.

i.  For non-electric rental vehicles, t ravelers may not be reimbursed for purchasing prepaid refueling options.  Therefore, travelers must refuel prior to returning the rental vehicle to the drop-off location.  NOTE :  If it is not possible to refuel completely prior to returning the vehicle because of safety issues or due to the location of closest fueling station, travelers will be reimbursed for vendor refueling charges.   For electric rental vehicles, travelers may be reimbursed for pre-paid charging costs and/or necessary costs paid via credit card or billed back to the rental vehicle company to recharge the vehicle before return.

j.  Travelers will not be reimbursed for fees associated with rental car loyalty points or the transfer of points charged by car companies.

14 FAM 566.2-2  Mileage Reimbursement

Mileage reimbursement rates for automobiles (including trucks, vans, etc.), airplanes, motorcycles, and motor scooters are set by GSA.  The current rates may be found on the GSA website.

14 FAM 566.3  Privately Owned Vehicle (POV) Use for Personal Convenience

14 FAM 566.3-1  General

When no determination of advantage to the U.S. Government is made (see 14 FAM 566.2 ), the employee may elect to use a privately owned vehicle for personal convenience.  Any reimbursement for expenses for travel will be the lesser of:

(1)  Mileage for the authorized mode of travel at the rates provided in 14 FAM 566.2-2 , plus related per diem; or

(2)  For the portion of the route connected by air service, reimbursement may not exceed the constructive cost of the authorized U.S. Government fare for the authorized mode of travel on a direct route, plus related per diem and other expenses.  For any portion of the route not connected by air service, reimbursement may not exceed the constructive cost of commercial fares on a surface common carrier.

14 FAM 566.3-2  Use of Rental Vehicle

When the employee elects to use a rented vehicle for personal convenience, and use of the rental vehicle has not been specifically authorized, per 14 FAM 566.2-1 , paragraphs f and g, reimbursement for travel expenses will be the lesser of:

(1)  Mileage, plus per diem and other expenses allowable on the authorized mode of transportation stated in the travel authorization; or

(2)  The constructive cost of the U.S. Government airfare on a direct route, plus per diem and other expenses.  For any portion of the journey not connected by air service, reimbursement may not exceed the constructive cost of less than premium-class accommodations on a surface common carrier.

14 FAM 566.4  Computing Expenses

14 FAM 566.4-1  Distances

When travel is performed by a privately owned motor vehicle, distances are to be determined by use of standard highway mileage guides.  Travelers must explain any substantial deviation from distances shown in the standard highway mileage.  When travel is performed by privately owned airplanes, distances are to be determined from airways charts issued by the National Oceanic and Atmospheric Administration, Department of Commerce.  If a detour is necessary on account of adverse weather, mechanical difficulty, or other unusual conditions, the additional highway or charted air mileage may be included but must be explained.

14 FAM 566.4-2  Allowable Travel Time

Allowable time for travel by privately owned conveyance is limited to that which is reasonably required.  Variations in driving conditions do not permit the establishment of daily mileage requirements.  In the United States, however, 360 miles per day is considered the average normal driving distance.  Where road, climate, and other factors beyond the control of the traveler cause interruptions and deviations resulting in longer than normal travel time, the traveler will include a full explanation on the travel voucher.  The traveler must also explain any unusual circumstances that influence the elapsed time for travel by privately owned aircraft.

14 FAM 566.4-3  Shared Expenses

When two or more authorized travelers share the same privately owned conveyance, payment of mileage expenses is made to only one of them.

14 FAM 567  ACCOMMODATIONS

14 FAM 567.1  Accommodations on Trains and Vessels

a. U.S. Government employees who travel by train or sailing vessel (ship/ferry) are authorized the lowest class of accommodation on the train or sailing vessel.  For overnight train travel, employees must use slumber coach sleeping accommodations or the lowest level of economy sleeping accommodations available.  For overnight travel on a sailing vessel, employees must use the lowest-cost stateroom.  First-class train or steamer accommodations may be used only as permitted in 14 FAM 567.1-2 .

b. In some countries, the lowest class of train or sailing vessel service available locally may be considered by posts to be unacceptable by U.S. standards and not comparable to what would be considered as a reasonable basic class of accommodation as defined in 14 FAM 511.3 .  For example, train service described as first class at some posts may only equate to the coach-class definition in the United States.  Accordingly, posts may establish a policy re-defining the acceptable level of local train accommodations that would meet each definition and document this in a written policy for travelers, inspectors, and U.S. Government Accountability Office (GAO) auditors.

c.  If a train has only two classes of accommodation available (i.e., first and business), then the business class accommodation is deemed to be classified as coach class for the purposes of official travel since it is the lowest class offered.  In such cases, the travel authorization should reflect that use of the lowest class of service available is authorized.  While such travel may take place in the train’s business class compartment, is not reportable to GSA as premium class travel and no Form DS-4087 is required.

14 FAM 567.1-1  Authorization and Approval for the Use of Business- or First-Class Train or Sailing Vessel Accommodations

a. First class :  Heads of agencies, or their designees as listed in 14 FAM 567.2-3 , may authorize or approve the use of first-class train or sailing vessel accommodations under criteria specified in 14 FAM 567.1-2 .

b. Business class :  Officials listed in 14 FAM 567.2-4 may authorize or approve the use of business-class train or sailing vessel accommodations under criteria specified in 14 FAM 567.1-2 .

14 FAM 567.1-2  Use of Business- or First-Class Train or Sailing Vessel Accommodations

The use of business- or first-class accommodation may not be authorized strictly based on position or rank.  When business- or first-class accommodations are authorized under the following circumstances, only the next higher available accommodations satisfying the needs may be used; for example, business-class accommodations should be utilized before going to first-class accommodations.  Circumstances justifying the use of business- or first-class train or sailing vessel accommodations are limited to those listed below ( NOTE :  14 FAM 567.1-2 , subparagraph (4), applies only to trains):

(1)  No reasonably available coach-class train accommodations or lowest class sailing vessel accommodations :

(a)  Trains :  The use of business-class train accommodations may be authorized when no coach-class train accommodations are reasonably available.  For this paragraph, "reasonably available" means coach-class train accommodations that are scheduled to leave within 24 hours of the employee's proposed departure time or scheduled to arrive within 24 hours of the employee's proposed arrival time.  In the case of a direct route that requires overnight travel, "reasonably available” must be based on the availability of slumber coach, or lowest economy, sleeping accommodations.  "Reasonably available" does not include any accommodation with a scheduled arrival time that is later than the employee's required reporting time at the duty site, or with a scheduled departure time that is earlier than the time the employee is scheduled to complete duty;

(b)  When the traveler determines that coach seats are unavailable for reservation for the day he or she must travel to arrive at a destination in time to conduct official business, the traveler may proceed to obtain a reserved seat in the next higher class where a reserved seat is available.  This is only permissible when the traveler has made a good-faith effort to obtain a reservation in coach class at the earliest practicable time, i.e., the employee cannot unreasonably delay or postpone making reservations and travel plans to justify premium class travel; and

(c)  Sailing vessels :  The use of the next higher-class accommodations may be authorized or approved only when lowest-class accommodations are not available on the vessel;

(2)  Travel on trains or sailing vessels by an employee with a disability :  The use of business- or first-class train or sailing vessel accommodations may be authorized or approved when necessary to accommodate an employee's disability or other physical impairment, and the employee's condition and need for business- or first-class train or sailing vessel accommodations are substantiated in writing by MED or the regional medical officer or other competent medical authority.  The use of business- or first-class accommodations may also be authorized for an attendant, when the employee is authorized use of business- or first-class train or sailing vessel accommodations and MED, or the regional medical officer or other competent medical authority certifies that the employee's disability or other physical impairment requires the services of an attendant en route;

(3)  Security reasons aboard trains or sailing vessels :  The use of business- or first-class train or sailing vessel accommodations may be authorized or approved when exceptional security circumstances require such travel.  Exceptional security circumstances include but are not limited to:

(a)  Travel by an employee whose use of coach train or lowest-class sailing vessel accommodations would endanger the employee's life or U.S. Government property;

(b)  Travel by agents in charge of protective details and accompanying individuals authorized business- or first-class accommodations; or

(c)  Travel by couriers or control officers accompanying controlled pouches or packages and the lowest-class accommodations cannot fulfill the mission; and

(4)  Inadequate foreign coach-class train accommodations (foreign trains only) :  The use of business- or first-class train accommodations may be authorized or approved when coach-class accommodations on a foreign rail carrier lack adequate sanitation or health standards.

14 FAM 567.1-3  Reporting Requirements for Business- or First-Class Travel on a Train or Sailing Vessel

a. Refer to 14 FAM 567.2-5 for instructions on reporting the use of business- or first-class train or sailing vessel travel to GSA.

b. Extra-fare train service does not need to be reported to GSA if the traveler was ticketed in the lowest class of service offered, even if that class of service was business class.

c.  Travel that has been authorized under 14 FAM 567.1-2 , subparagraph (4) for inadequate sanitation or health standards does not need to be reported to GSA.

14 FAM 567.1-4  Extra-Fare Train Service (Express Trains)

a. Extra-fare train service is enhanced performance (i.e., faster speed or fewer stops) relative to other trains available between the same origin and destination.

b. Use of extra-fare trains is not authorized unless determined more advantageous to the U.S. Government or required for security reasons.

c.  To justify time savings as an advantage to the U.S. Government, the extra-fare train must reduce overall journey time by one hour or more.  Authorizing officials are reminded that air travel may be less expensive than extra-fare trains and, if so, should be the authorized mode of transportation.

d. To justify cost savings as an advantage to the U.S. Government, a ticket for the lowest class of service available on an extra-fare train must, relative to a ticket for the lowest class of service available on a standard train:

(1)  Have the same restrictions;

(2)  Be less expensive; and/or

(3)  Depart within 3 hours of the standard train that would otherwise be booked.

e. Authorizing officials listed in 14 FAM 567.1-1 must approve this and the requirements of 14 FAM 567.1-2 must be met to authorize business class (when it is other than the lowest class of service offered on the train) or first class on an extra-fare train.

14 FAM 567.2  Airplanes

a. See 14 FAM 583 .

b. U.S. Government employees who use commercial air carriers for domestic and international travel on official business must be authorized coach-class airline accommodations.  When available, the use of contract-air carriers offering discount (city-pair) fare is mandatory (see 14 FAM 542 , paragraph b).  First-class air accommodations may be authorized only as permitted in 14 FAM 567.2-3 .  Business-class air accommodations may be authorized only as permitted in 14 FAM 567.2-4 .

14 FAM 567.2-1  Seat Selection and Assignment

a. Each traveler, regardless of age, is entitled to occupy a seat on an airplane.

b. The policies and business practices of the airline(s) operating and/or marketing a particular flight determine whether a seat selection is available and, if they are available, whether a fee must be paid to obtain a seat.

c.  Inability to obtain a seat selection or assignment, either for "free" or upon payment of a fee, does not confer an exception to the mandatory use of contract carriers ( 14 FAM 543 ), the provisions of the Fly America Act ( 14 FAM 583 ), or the requirement to authorize travel on the carrier offering the lowest fare that is consistent with all travel regulations.

d. Except as specified in subparagraphs d(1) through d(3) of this section, travelers are eligible for reimbursement of charges to obtain an economy class seat selection in an amount not to exceed $300 (each way) between any two authorized duty locations (i.e., origin and destination pairs), as indicated on a travel authorization.  When a traveler qualifies for and is authorized a rest stop, the rest stop location is not considered a separate duty location for the purposes of this provision:

(1)  If a bureau/post has a written policy stating that it wishes to limit this benefit, a traveler’s authorizing official may cap reimbursement at a lower amount for a particular instance of travel.  In such cases, the authorizing official must specify, in advance of travel, the amount authorized for reimbursement between each duty location and should offer the traveler an explanation for the reduction;

(2)  Seat selection fees are not reimbursable for any segment(s) of travel:

(a)  Conducted in an indirect manner; or

(b)  For which a traveler has cost-constructed to use accommodation in business or first class; or

(c)  For which a traveler has been authorized business class or first-class accommodations; and

(3)  The "value" of a seat selection fee cannot be applied towards the cost of obtaining a ticket in an other-than-coach class of service or be considered as part of any cost-construct calculation.

e. Payment of a seat selection fee must be made directly to the airline by the traveler.  TMCs are not authorized to pay for seat selection fees, either by charging them directly to the U.S. Government or by facilitating payment on behalf of the traveler.

f.  Reimbursement for a seat selection fee must be approved on the travel authorization prior to commencing travel and can only be approved for authorized direct travel (see 14 FAM 511.3 ).

g. Receipts are required for reimbursement of seat selection fees, regardless of amount.

h. For the purposes of determining eligibility for reimbursement, a seat selection in any cabin except business class or first class will be considered an economy class seat selection.  Travelers may purchase any seating product, including those that offer increased seat width, additional legroom (formerly referred to as “extended economy seating”), or which are bundled/packaged with enhanced onboard or on-ground service, if the seating product is not business class or first class.  For example, whether an airline calls a seating product Economy Plus, Premium Economy, or Preferred Seats has no bearing on eligibility for reimbursement as long as the seats are not business or first-class seats.

i.  Travelers, not the TMC or airline, are responsible for making accurate determinations regarding whether a particular airline product is eligible for reimbursement as an economy-class seat assignment.  Because some airlines have developed branded names that do not give direct indication of their product’s status as business or first class (e.g., United Polaris, Delta One, Copa Dreams Class), travelers who are uncertain whether a product qualifies for reimbursement as an economy class seat selection fee may request a determination of eligibility, before travel commences, by contacting [email protected].

14 FAM 567.2-2  Requirements

14 FAM 567.2-2(A)  Authorization

a. Authorization for first-class or business-class air accommodations must be made in advance of the actual travel and must be documented in accordance with 14 FAM 567.2-2(B) .  The designated approving official must not be subordinate to the traveler except that the Executive Secretary may approve first-class or business-class air accommodations for the Secretary and the Deputy Secretaries.

b. If the documents required under 14 FAM 567.2-2(B) cannot be completed in advance of travel due to an emergency, the employee must obtain advance approval from an agency official not subordinate to the traveler or from the chief of the agency’s transportation and travel management division or other designated office and must submit the required documents with the appropriate signatures at the earliest possible time.

c.  If the employee does not obtain written authorization in accordance with this section, the employee is responsible for the difference between the first-class or business-class air accommodations used and the authorized coach-class or equivalent accommodations.

14 FAM 567.2-2(B)  Documentation

a. Authorization :  All requests for authorization must contain the name, grade, and position of the travelers; points between which first-class or business-class air accommodations are authorized; additional cost to the U.S. Government resulting from the difference between first-class or business-class and coach-class air accommodations; beginning date of travel; and an explanation of circumstances justifying the use of first-class or business-class air accommodations:

(1)  Authorization for first-class air accommodations must be reflected in the travel authorization and accompanied by a memo from the appropriate agency head or designee (see 14 FAM 567.2-3 );

(2)  Authorization for business-class air accommodations must be reflected in the travel authorization and accompanied by the appropriate form signed by the designated approving official (see 14 FAM 567.2-4 ):

(a)  State :  Form DS-4087, Authorization Request for Business-Class Air Travel; or Form DS-4086, Special Seating Request Form for Air Travel, if the justification for use of premium-class accommodations is authorized for disability or special need under 14 FAM 567.2-4 , subparagraph (b)(3);

(b)  USAID :  Form AID-522-2, Business Class Memorandum to M/MS/TTD;

(c)  Commerce :  Form CD-334, Request for Approval of Other Than Coach-Class Accommodations;

(d)  USDA/FAS :  Memo requesting premium-class travel;

(e)  APHIS :  Memo to approving official; and

(f)   USAGM :  Memo to approving official.

b. Ticketing :  The travel management center (where applicable) will not ticket first-class or business-class accommodations without the appropriate documentation.  Posts that do not have a travel management center must retain the required documentation for the record.

c.  Blanket orders :  The use of blanket travel authorizations for first-class or business-class accommodations is prohibited (State Department personnel).  Each trip involving first- or business-class travel accommodations must be separately authorized.

d. Couriers :  A courier who flies first class when business-class air accommodations are not available, must complete and sign Form DS-3031, Certification for Use of First-Class Air Accommodations.  A copy of the certification must be retained by the courier and the original is to be maintained in the courier's regional office.

14 FAM 567.2-3  First-Class Travel

a. Authorization or approval :  Authority to approve the use of first-class air accommodations is limited to the respective agency heads (the Secretary of State, the Administrator of USAID, the Secretary of Commerce, the Director of the U.S. International Broadcasting Bureau of the Broadcasting Board of Governors (USAGM/IBB), and the Secretary of Agriculture) or their designees.  Designees are as follows:

(1)  State :  The Under Secretary for Management (M) per State Department Delegation of Authority No. 198, dated September 16, 1992, except that the Executive Secretary may approve the use of first-class air accommodations for the Secretary and the Deputy Secretary;

(2)  USAID :  The Deputy Administrator;

(3)  Commerce :  The Chief Financial Officer and the Assistant Secretary for Administration except in cases of medical necessity or emergency evacuation when the Deputy Assistant Secretary for International Operations is delegated authority to approve.  First-class travel will only be authorized if no other commercial service is reasonably available or such travel is necessary for reasons of disability or medical condition (for details on Commerce’s policy on use of business-class accommodations, contact the Office of Foreign Service Human Capital);

(4)  USDA/FAS :  The Administrator, Foreign Agricultural Service;

(5)  APHIS :  The Under Secretary for Marketing and Regulatory Programs; and

(6)  USAGM :  The Director of the International Broadcasting Bureau or as specified in the Manual of Administration.

b. Use of first-class accommodations :  Circumstances justifying the use of first-class air accommodations are limited to those listed below:

(1)  No other reasonably available accommodations :  The use of first-class air accommodations may be authorized or approved when coach-class air accommodations or business-class air accommodations are not reasonably available.  "Not reasonably available" means no other class of accommodations other than first-class accommodations is available on any scheduled flight in time to accomplish the purpose of the official travel;

(2)  Travel by an employee with a disability :  The use of first-class air accommodations may be authorized or approved when necessary to accommodate an employee's disability or other physical impairment, and the employee's condition and need for first-class air accommodations are substantiated in writing by MED or the regional medical officer or other competent medical authority. The use of first-class air accommodations also may be authorized for an attendant(s) who is authorized to accompany the employee, when the employee is authorized first-class air accommodations and MED or the regional medical officer or other competent medical authority or the Disability/Reasonable Accommodation Division (GTM/ER/DRAD) certifies in writing that the employee's disability or other physical impairment requires the services of the attendant(s) en route;

(3)  Security reasons :  The use of first-class air accommodations may be authorized or approved when exceptional security circumstances require such travel.  Exceptional security circumstances include but are not limited to:

(a)  Travel by couriers or control officers accompanying controlled pouches or packages when business-class air accommodations are not available (see 14 FAM 567.1-2 , subparagraph (3)(c)); or

(b)  Travel by agents in charge of protective details accompanying first-class travelers; and

(c)  When required because of agency mission.

14 FAM 567.2-4  Business-Class Travel

a. Authorization or approval :

(1)  State :  For PCS travel, the designated approving official is the Executive Director, Bureau of Global Talent Management (GTM/EX).  Except where otherwise indicated, business-class air accommodations may be authorized only with approval from the officials below (or their designated representative(s)) as provided to TMP.  For travelers not mentioned below, the designated approving official must not be subordinate to the traveler:

(2)  USAID :  The Chief of the Travel and Transportation Division (M/MS/TTD), the director of the funding bureau, office, or mission or designee;

(3)  Commerce :  The Chief Financial Officer and the Assistant Secretary for Administration except in cases of medical necessity or emergency evacuation when the Deputy Assistant Secretary for International Operations is delegated authority to approve.  Business-class travel will only be authorized if no other commercial service is reasonably available or such travel is necessary for reasons of disability or medical condition (for details on Commerce's policy on the use of business-class accommodations, contact the Office of Foreign Service Human Capital);

(4)  USDA/FAS :  The Under Secretary for Farm and Foreign Agricultural Services and the USDA Chief Financial Officer;

(5)  APHIS :  The Under Secretary for Marketing and Regulatory Programs and the USDA Chief Financial Officer; and

b. Justification :  Travelers may use business-class air accommodations when an approving/authorizing official specifically approves or authorizes the travel in accordance with one or more of the following reasons:

(1)  Coach-class air accommodations not available :  Business-class air accommodations may be authorized when regularly scheduled flights between the authorized origin and destination points (including connection points) provide only business-class air accommodations;

(2)  No space available in coach-class air accommodations :  Business-class air accommodations may be authorized when space is not available in coach-class accommodations on any scheduled flight in time to accomplish the purpose of the official travel;

(3)  Travel by an individual with a disability or special need :  Upon the recommendation of the Bureau of Medical Services (MED), other competent medical authority in exigent circumstances, or the Disability/Reasonable Accommodation Division (GTM/ER/DRAD), business-class air accommodations may be authorized when necessary to accommodate an employee's disability or special need.  Other competent medical authority must certify in writing (to include the supporting clinical findings) the traveler’s condition and need for business-class air accommodations.  Upon the recommendation of MED or, in exigent circumstances, other competent medical authority, business-class air accommodations may also be authorized for an attendant authorized to accompany the traveler when the traveler is authorized use of business-class air accommodations.  Authorization for an attendant to accompany the traveler, by other competent medical authority, must include written certification that the traveler’s disability or other special need requires the services of the attendant en route;

(4)  Security or exceptional circumstances :  Business-class air accommodations may be authorized when such accommodations are required for security purposes or because exceptional circumstances, as determined by the agency head, or his or her designee, make their use essential to the successful performance of the agency's mission.  NOTE :  Exceptional circumstances may include, but are not limited to, a chief of mission (COM) and their eligible family member spouse (whether traveling together or at different times) going to post for the first time or leaving post the last time, in accordance with protocol and diplomatic practice for a COM.  The tandem spouse of a COM assigned to the same post may also be authorized business class on this basis.  Other eligible family members who accompany either the COM or spouse may be authorized business class.  If consultations are authorized en route to and from post, business-class accommodations may be authorized to and from the consultation location(s);

(5)  Overall cost savings :  Business-class air accommodations may be authorized when such accommodations would result in an overall savings to the U.S. Government, including by avoiding additional subsistence costs, overtime, or lost productive time while awaiting coach class accommodations.  Whenever a cost comparison is made, documentation of the specific flight itineraries and their respective costs must be retained and included in the travel authorization for future reference and to meet auditing requirements:

(a)  If a traveler is otherwise authorized an unrestricted economy fare and seeks to be authorized a business-class fare under this provision, the unrestricted economy fare must be compared to the cost of an unrestricted business-class fare;

(b)  If a traveler is otherwise authorized a restricted economy fare and seeks to be authorized a business-class fare under this provision, the restricted economy fare must be compared to the cost of a restricted business-class fare;

(6)  Agency mission :  Business-class air accommodations may be authorized when required due to agency mission.  State only :  Business-class travel of 14 hours or less based on this criteria must be approved by the traveler's under secretary or equivalent in their supervisory chain.  Deputy secretary and under secretary business-class travel is approved by the Executive Secretary;

(7)  Acceptance of payment from non-Federal source :  Business-class air accommodations may be authorized when the employee's transportation is paid in full through agency acceptance of payment from a non-Federal source in accordance with 2 FAM 962.12 (g) and 41 CFR 304-5.5; and

(8)  Travel in excess of 14 hours for temporary duty (TDY) travel, or medical evacuation travel (exception :  USAGM; for further USAGM guidance on when business-class accommodations can be authorized, refer to USAGM’s Manual of Operations and Administration (MOA) directive PART IV Section 636.3, Business-Class Travel Exceptions):

(a)  TDY travel to receive training:  Business-class air accommodations are not authorized for TDY travel over 14 hours where the primary purpose of the travel, as determined by the funding bureau or post approving/authorizing officer, is for the traveler to receive training or instruction;

(b)  TDY travel not related to training:  For TDY travel over 14 hours, travelers are authorized economy-class accommodations with a rest stop or a paid day pass to a business-class lounge at an intermediate point on the traveler’s authorized itinerary.  However, the funding bureau's executive director or authorizing official at post may determine that circumstances warrant issuance of a business-class ticket provided the following criteria are met:

(i)     The origin and/or destination is outside the continental United States;

(ii)    The scheduled flight time (including stopovers, but not including rest stops) on the usually traveled route is in excess of 14 hours;

(iii)    The purpose of the trip is urgent and cannot be postponed. The traveler must physically report to the duty location immediately upon arrival or the following day, and work until the urgent requirements are fulfilled; and

(iv)   Travelers taking leave during or near the dates of their travel indicate that there are no urgent duties requiring the traveler’s immediate departure or return.  Travelers who do not report for duty immediately upon arrival or no later than the next day, or take leave within days of their TDY travel should not be authorized business class travel.  The traveler may be held liable for excess business class accommodations;

(c)  Travelers in U.S. Government-funded business class are not entitled to a U.S. Government-funded rest stop en route to or upon arrival at the duty site.  They are not eligible for a U.S. Government-funded business-class lounge day pass, (see 14 FAM 584 ).  For definition of travel in excess of 14 hours and rest stop en route, see 14 FAM 567.2-4 , subparagraph b(10)(d);

(d)  Medical evacuation travel:  Premium-class travel is not authorized for medical evacuation unless MED, in consultation with the Foreign Service medical provider, or in an exigent situation, authorizes business-class accommodations for medical reasons.  Travelers authorized by MED to use premium accommodations may not be authorized a rest stop en route or a rest period upon arrival at destination, unless specifically authorized by MED.  Travel over 14 hours in duration that is not deemed medically necessary for premium class by MED, will be authorized economy class with a rest stop or a U.S. Government-funded day pass to a business-class lounge at the intermediate point;

(e)  Other official travel:  Business-class air accommodations may not be authorized or approved for other types of official travel more than 14 hours (such as R&R, PCS, home leave/return to post, educational travel, EVT, etc.) unless justified under one of the other provisions (see 14 FAM 567.2-4 ); and

(f)   Calculation of 14-hour travel period:

(i)     The “14-hour travel time" is defined as the scheduled flight time on the most expeditious available routing from your point of origin to scheduled arrival at point of destination (wheels up at origin to wheels down at destination).  It does not include rest stops or travel from residence/hotel to the airport.  Travel in excess of 14 hours includes a leg of travel (a travel segment) in excess of 14 hour or continuous legs of travel (continuous travel segments) without a U.S. Government-funded rest stop in excess of 14 hours on the most direct route;

(ii)    The time zone dislocation provision for a rest period upon arrival ( 14 FAM 584.5 ) does not apply to business-class travel.  However, business-class travelers may arrive the night before a meeting and be provided per diem for the night if such arrival is necessary to ensure attendance at the meeting.  This is not considered a rest period upon arrival; and

(iii)    The traveler will not be penalized and deprived of business-class accommodations if travel is delayed or accelerated due to airline schedules rather than to accommodate a traveler’s personal convenience.  This is not a rest period or rest stop.

c.  Use of the lowest upgradeable fare :  In cases where business-class travel is authorized in accordance with the justifications above, but not funded by the bureau or post, the bureau or post may approve the lowest-cost upgradable fare if the traveler commits to upgrading to a business-class fare at their own expense:

(1)  Travelers are responsible for obtaining approval for the lowest-cost upgradable fare from the authorizing official by completing a Form DS-4087 prior to travel;

(2)  The cost of the upgradable fare may not exceed the cost of the business-class fare for which the traveler is eligible;

(3)  When available and approved by the authorizing official, the discounted GSA city-pair YCA fare may qualify as the lowest upgradable fare in lieu of the CA fare;

(4)  When a GSA city-pair fare is not available, the authorizing official may approve a fare up to and including the full "Y" fare as the lowest upgradable fare;

(5)  A traveler may be authorized the upgradable fare only when the cost of the upgrade is borne by the traveler; and

(6)  Rest stops or day passes to a business-class lounge are not authorized when a traveler elects this option.

d. Business-class travel within the United States :  U.S. domestic flights do not usually offer separate and distinct business-class seats.  The U.S. Government, however, cannot directly book employees eligible for business-class into first-class accommodations.  When business-class accommodations are authorized and the airline places the individual in first-class seating at no additional cost for the part of the routing within the United States via a connection, such seating would be considered business-class accommodations for the purpose of this rule.

e. Traveler-paid or airline-provided business class :  When a traveler is authorized economy class but actually travels in business class, such as by redeeming airline miles or points, completion of a Form DS-4087 is not necessary.  Such instances are also not included in the annual premium-class travel report since they do not change the authorized class of accommodation or expend more U.S. Government funds than would have been spent on the authorized class of service.

f.  Exceptions :  The Under Secretary for Management or designee may make exceptions to this section to the extent consistent with the law.

14 FAM 567.3  Premium-Class Travel Reporting

a. Each post and domestic office that issues travel tickets must submit a premium-class (first-class and business-class) travel report identifying all premium-class commercial travel (i.e., airplanes, trains, vessels) ticketed and utilized during the fiscal year.  The only exception for reporting premium-class travel is outlined in 14 FAM 567.1-3 .  A negative report is required if no premium-class travel was utilized.  The Department is required to report to the General Services Administration (GSA) no later than October 31 each year.  Travel on U.S. Government aircraft is reported separately and is covered in 14 FAM 558 .

b. When the traveler was ticketed in the lowest class of service offered, or use is authorized under 14 FAM 567.1-2 , subparagraph (4), travel on an extra-fare train does not need to be reported to GSA.

c.  State only :  The Department ‘s Travel Management and Policy Division (A/LM/OPS/TMP) will compile the premium-class travel report from each post with a report from the domestic TMC including domestically issued tickets and submit a consolidated report to GSA in accordance with the guidelines in 41 CFR 300-70.100-103 of the Federal Travel Regulations.

14 FAM 568  AIRLINE LUGGAGE ALLOWANCE

14 FAM 568.1   Authorized Luggage

a. Each traveler is authorized to check, at U.S. Government expense, two pieces of luggage which do not exceed the airline's size limitations or are not considered "oversized" by the operating air carrier, and which weigh up to 50 pounds (23 kilograms) per piece.  This allowance constitutes "authorized luggage."  It applies to all types of travel and to/from all locations.

b. If a traveler checks items that exceed this authorized weight, size, and/or quantity limitation, reimbursement from the U.S. Government is limited to the cost that would have been incurred to transport “authorized luggage.”

c.  Up to two additional pieces of luggage (a maximum of four), which do not exceed the airline's size limitations and which weigh up to 50 pounds per piece, per authorized traveler, may be approved in lieu of an allowable unaccompanied baggage (UAB) entitlement for direct travel if approved in the travel authorization prior to commencing travel.

d. If, for a particular segment of a journey, an air carrier makes a more generous (weight, quantity, or size) checked luggage allowance available to a traveler at no, or no additional, cost to the U.S. Government, the traveler is welcome to utilize the more generous allowance for that segment.  This privilege does not , however, increase the “authorized luggage” allowance for subsequent segments.

e. Authorized luggage for indirect (cost-constructed) travel :  When a traveler elects to engage in indirect (cost-constructed) travel, the total amount that may be reimbursed by the U.S. Government for checked luggage fees is limited to the sum of expenses that would have been incurred to transport authorized luggage along all segments of the direct route.

14 FAM 568.2  Excess Luggage

a. Luggage exceeding the weight, size, or quantity limit for “authorized luggage” is considered “excess luggage.”  To be transported at U.S. Government expense, excess luggage must be required for an official purpose and be specifically authorized in advance of travel.  Travel orders that include authorization for the transport of excess luggage must include a justification detailing the specific official purpose necessitating the transport and an estimated cost of such transport.

b. Travel orders for an individual required to transport a checked luggage piece or pieces entirely comprised of U.S. Government materials should include authorization for the transport of those pieces as excess luggage to ensure that the traveler’s personal authorized luggage allowance is not diminished.

c. Excess luggage is not authorized at U.S. Government expense for permanent change-of-station, rest-and-recuperation, family-visitation, and/or emergency-visitation travel.  For medical travel, please refer to 16 FAM 310 .

14 FAM 568.3  Receipts

Receipts are required for reimbursement of checked luggage fees in any amount, including fees assessed by an air carrier to transport “authorized luggage.”

14 FAM 569  UNASSIGNED

Accounting | How To

Determining Tax Deductions for Travel Expenses + List of Deductions

Published August 15, 2023

Published Aug 15, 2023

Tim Yoder, Ph.D., CPA

WRITTEN BY: Tim Yoder, Ph.D., CPA

This article is part of a larger series on Accounting Software .

  • 1. Determine Your Trip Meets the Requirements of a Business Trip
  • 2. Check the List of Business Expenses That Qualify for Deductions
  • 3. (For Those Mixing Business & Personal Travel): Allocate Expenses

Bottom Line

The IRS considers deductible travel expenses to be any ordinary and necessary expenses you incur while traveling away from home on business. To get tax deductions for travel expenses, the trip must have a business purpose and be temporary (less than one year) and you must be away from your tax home for a length of time that exceeds your usual work day or be away overnight to get sleep to fulfill the demands of your job while away.

Key Takeaways

  • A qualifying business trip must take you away from home overnight long enough to require rest.
  • Most expenses incurred during a qualifying business trip are deductible, including meals on days off.
  • Partnerships, limited liability companies (LLCs), and corporations can directly pay or reimburse employees for business travel expenses and deduct them from their business returns.
  • Self-employed business owners will deduct their travel expenses on Schedule C, while farmers will use Schedule F.
  • Purely personal expenses on business trips, such as sightseeing, are nondeductible.

Step 1: Determine Your Trip Meets the Requirements of a Business Trip

A business trip for tax purposes is one that meets the following criteria:

  • There must be a business purposes for the travel
  • You are required to be away from your tax home
  • The trip lasts overnight or a period long enough to require rest
  • The trip is temporary

Business Purpose

Your trip must be an ordinary and necessary part of conducting your business for your expenses to be deductible. Below are some reasons you may decide to travel for business:

  • Meeting with clients or customers: If you travel overnight to meet with clients or customers for business purposes, such as negotiating contracts, discussing projects, or providing consultations.
  • Attending business conferences or seminars: If you travel to attend conferences, seminars, or trade shows that are relevant to your business activities, including acquiring new industry knowledge or networking with other professionals.
  • Training or professional developmen t : If you travel to attend training programs, workshops, or courses directly related to your business or profession.
  • Conducting in-person meetings or negotiations: If you need to travel to have face-to-face meetings or negotiations with business partners, suppliers, or other stakeholders.

Your tax home is not your residence but rather your principal place of business activity including the entire city or general location of your business. So, your business trip cannot be in the general vicinity of your principal place of business for you to be away from home.

  • Amount of time you spend at each location
  • Degree of business activity in each area
  • Relative significance of the financial return from each area
  • No regular place of business: If, by the nature of the work, there is no regular or principal place of business, then your tax home will be the place where you regularly live and where you travel to different job sites to perform your service.

For example, a self-employed repair person may not have a regular place of business because they spend each workday at a different customer’s location.

Overnight Stay

Overnight stays for travel purposes do not specifically mean staying from evening to the next morning. Instead, overnight means that the trip is longer than a typical day’s work and long enough for you to require rest. Resting in your car is generally not enough, but if you have to get a hotel room, then the trip will qualify as overnight regardless of when you sleep.

Transportation vs travel expenses: Local transportation at your tax home can be deductible without an overnight stay—if there is a business reason for the transportation, such as driving from your office to visit a client. On a tangent, when you travel overnight, your transportation is deductible, and so are things like lodging, meals, and incidental expenses.

Temporary Travel

For purposes of business travel, a temporary stay is one that is expected to last for less than one year. Open-ended trips are not temporary.

However, say you initially anticipate that your trip will last less than one year, but it later becomes apparent that it will last more than one year. The trip is a deductible business trip up until the point in time it becomes apparent it will last more than one year.

The IRS will also consider a series of assignments to the same location, all for short periods, that together cover a long period to be an indefinite assignment. Any expenses you incur from this type of trip will not be deductible.

Step 2: Check the List of Business Expenses That Qualify for Deductions

Your travel expenses must be business-related—unless an exception applies—to qualify for a deduction. However, if you incur expenses that are purely for personal pleasure, they are nondeductible.

Here is a list of business travel expenses that can be deducted.

Round-trip Transportation To-and-From the Destination

Transportation for a round trip to and from your temporary work location is deductible—and it could be anything that gets you to the location, including via your personal car. If you use your personal car, your costs are calculated using either the actual expenses or the standard mileage rate .

In addition, you can deduct additional round trips to return to home when you are not working.

However, the deduction for the additional round trips is limited to the cost you would have incurred if you stayed at the temporary location. Those costs could include meals and lodging.

  • The business purpose of the meals is your business trip and are thus deductible—even if you eat alone.
  • Meals on days off qualify.
  • Travel to and from meals is deductible—even on your days off.
  • The meals do not have to have a specific business purpose, such as meeting with a client.
  • For longer trips, lodging can include monthly rentals.
  • If you return home on your days off but keep the lodging at your travel location, then the lodging is still deductible if it is ordinary and necessary. For instance, the monthly rent of an apartment at your travel location would be deductible even if you return home on the weekends.

Transportation at the Destination

Once you arrive at your destination, you may need additional transportation to get around town—and these costs are deductible. The only exception would be if you travel to the destination for a purely personal reason like sightseeing on your day off.

Incidentals

Incidental expenses are minor expenditures associated with business travel. You can deduct the actual cost of any one of the following expenses:

  • Shipping of baggage and sample or display material between your regular and temporary work locations
  • Business seminar and registration fees
  • Dry cleaning and laundry
  • Business calls include business communications by fax machine and other communication devices
  • Tips you pay for services related to any of these expenses
  • Parking, tolls, and fees
  • Any other similar ordinary and necessary expenses related to your business travel

Step 3 (For Those Mixing Business & Personal Travel): Allocate Expenses

When trips are both business and personal, the allocation of expenses varies based on the primary purpose of the trip. Determining the primary purpose of your journey requires you to evaluate the time spent on business vs personal activities.

Primarily Business Domestic Trips

If your trip is primarily for business purposes, then the round-trip transportation is 100% deductible and does not need to be allocated to the personal portion of your trip. However, all other expenses, like lodging and meals, must be allocated to personal expenses for days where there was no business reason for staying.

For example, if your seminar ends on Friday and you stay until Sunday, then the lodging and meals for Saturday and Sunday are nondeductible.

Primarily Personal Domestic Trips

If the primary purpose of your trip is personal, then none of the round-trip expenses are deductible. However, you can deduct the business portion of meals, lodging, and local transportation that was incurred for a business purpose.

Let’s say you stay a couple of days after your family vacation to meet with a client. The lodging and meals for those extra days are deductible.

Business Foreign Trips

The allocation of travel expenses on foreign trips is slightly different from the rules above. Round-trip transportation for foreign trips must be allocated to business and personal based on the number of business vs personal days on the trip. This is different from the “all or nothing” rule for the cost of domestic round-trip travel.

If your spouse joins you on a business trip, you usually cannot deduct any of their expenses. However, if your spouse’s trip satisfies a business purpose, then expenses must be otherwise deductible by the spouse.

Generally, for the travel costs of a spouse, dependent, or any other person to be tax-deductible, they must work for the business or be a co-owner.

Frequently Asked Questions (FAQs)

Are travel expenses tax deductible for business.

Yes, roundtrip travel is 100% tax deductible as long as the primary purpose of the trip is business. Once at your destination, expenses must be allocated between business and personal. However, all meals are deductible as long as the reason for your continued stay is business.

Can I deduct travel expenses for my employees?

Yes, you can generally deduct travel expenses for your employees as long as the expenses are ordinary and necessary, directly related to your business, and properly substantiated.

Is there a limit to the amount of travel expenses I can deduct?

Yes, there are some such as business travel on a cruise ship, where the expense is limited to $2,000 per year. Also, your expenses are limited to the non-lavish or extravagant cost of the trip, so you may want to be careful before booking a 5-star hotel.

Travel expenses are ordinary and necessary expenses you incur while you are temporarily away from home, so these expenses cannot be lavish in nature. To determine if a travel expense is deductible, it must be directly related to your trade or business.

When it comes to travel expenses, having well-organized records makes it much simpler to complete your tax return. Keep track of any records that may be used to substantiate a deduction, such as receipts, canceled checks, and other documentation.

About the Author

Tim Yoder, Ph.D., CPA

Find Timothy On LinkedIn

Tim Yoder, Ph.D., CPA

Tim worked as a tax professional for BKD, LLP before returning to school and receiving his Ph.D. from Penn State. He then taught tax and accounting to undergraduate and graduate students as an assistant professor at both the University of Nebraska-Omaha and Mississippi State University. Tim is a Certified QuickBooks ProAdvisor as well as a CPA with 28 years of experience. He spent two years as the accountant at a commercial roofing company utilizing QuickBooks Desktop to compile financials, job cost, and run payroll. Tim has spent the past 4 years writing and reviewing content for Fit Small Business on accounting software, taxation, and bookkeeping.

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What Are Travel Expenses?

Understanding travel expenses, the bottom line.

  • Deductions & Credits
  • Tax Deductions

Travel Expenses Definition and Tax Deductible Categories

Michelle P. Scott is a New York attorney with extensive experience in tax, corporate, financial, and nonprofit law, and public policy. As General Counsel, private practitioner, and Congressional counsel, she has advised financial institutions, businesses, charities, individuals, and public officials, and written and lectured extensively.

miscellaneous travel expenses examples

For tax purposes, travel expenses are costs associated with traveling to conduct business-related activities. Reasonable travel expenses can generally be deducted from taxable income by a company when its employees incur costs while traveling away from home specifically for business. That business can include conferences or meetings.

Key Takeaways

  • Travel expenses are tax-deductible only if they were incurred to conduct business-related activities.
  • Only ordinary and necessary travel expenses are deductible; expenses that are deemed unreasonable, lavish, or extravagant are not deductible.
  • The IRS considers employees to be traveling if their business obligations require them to be away from their "tax home” substantially longer than an ordinary day's work.
  • Examples of deductible travel expenses include airfare, lodging, transportation services, meals and tips, and the use of communications devices.

Travel expenses incurred while on an indefinite work assignment that lasts more than one year are not deductible for tax purposes.

The Internal Revenue Service (IRS) considers employees to be traveling if their business obligations require them to be away from their "tax home" (the area where their main place of business is located) for substantially longer than an ordinary workday, and they need to get sleep or rest to meet the demands of their work while away.

Well-organized records—such as receipts, canceled checks, and other documents that support a deduction—can help you get reimbursed by your employer and can help your employer prepare tax returns. Examples of travel expenses can include:

  • Airfare and lodging for the express purpose of conducting business away from home
  • Transportation services such as taxis, buses, or trains to the airport or to and around the travel destination
  • The cost of meals and tips, dry cleaning service for clothes, and the cost of business calls during business travel
  • The cost of computer rental and other communications devices while on the business trip

Travel expenses do not include regular commuting costs.

Individual wage earners can no longer deduct unreimbursed business expenses. That deduction was one of many eliminated by the Tax Cuts and Jobs Act of 2017.

While many travel expenses can be deducted by businesses, those that are deemed unreasonable, lavish, or extravagant, or expenditures for personal purposes, may be excluded.

Types of Travel Expenses

Types of travel expenses can include:

  • Personal vehicle expenses
  • Taxi or rideshare expenses
  • Airfare, train fare, or ferry fees
  • Laundry and dry cleaning
  • Business meals
  • Business calls
  • Shipment costs for work-related materials
  • Some equipment rentals, such as computers or trailers

The use of a personal vehicle in conjunction with a business trip, including actual mileage, tolls, and parking fees, can be included as a travel expense. The cost of using rental vehicles can also be counted as a travel expense, though only for the business-use portion of the trip. For instance, if in the course of a business trip, you visited a family member or acquaintance, the cost of driving from the hotel to visit them would not qualify for travel expense deductions .

The IRS allows other types of ordinary and necessary expenses to be treated as related to business travel for deduction purposes. Such expenses can include transport to and from a business meal, the hiring of a public stenographer, payment for computer rental fees related to the trip, and the shipment of luggage and display materials used for business presentations.

Travel expenses can also include operating and maintaining a house trailer as part of the business trip.

Can I Deduct My Business Travel Expenses?

Business travel expenses can no longer be deducted by individuals.

If you are self-employed or operate your own business, you can deduct those "ordinary and necessary" business expenses from your return.

If you work for a company and are reimbursed for the costs of your business travel , your employer will deduct those costs at tax time.

Do I Need Receipts for Travel Expenses?

Yes. Whether you're an employee claiming reimbursement from an employer or a business owner claiming a tax deduction, you need to prepare to prove your expenditures. Keep a running log of your expenses and file away the receipts as backup.

What Are Reasonable Travel Expenses?

Reasonable travel expenses, from the viewpoint of an employer or the IRS, would include transportation to and from the business destination, accommodation costs, and meal costs. Certainly, business supplies and equipment necessary to do the job away from home are reasonable. Taxis or Ubers taken during the business trip are reasonable.

Unreasonable is a judgment call. The boss or the IRS might well frown upon a bill for a hotel suite instead of a room, or a sports car rental instead of a sedan.

Individual taxpayers need no longer fret over recordkeeping for unreimbursed travel expenses. They're no longer tax deductible by individuals, at least until 2025 when the provisions in the latest tax reform package are due to expire or be extended.

If you are self-employed or own your own business, you should keep records of your business travel expenses so that you can deduct them properly.

Internal Revenue Service. " Topic No. 511, Business Travel Expenses ."

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Page 13.

Internal Revenue Service. " Publication 5307, Tax Reform Basics for Individuals and Families ," Page 7.

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Pages 6-7, 13-14.

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Page 4.

Internal Revenue Service. " Publication 5307, Tax Reform Basics for Individuals and Families ," Pages 5, 7.

miscellaneous travel expenses examples

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Miscellaneous travel expenses.

Reimbursable expenses while on official travel status include, but are not limited to, the following:

  • Airfare change fees, if change required by business needs
  • Baggage handling services
  • Business office expenses (copy services, postage, supplies < $500)
  • Business related phone calls, faxes, and internet usage charges and fees
  • Transportation costs from lodging or businesses to restaurants
  • Conference/Registration fees
  • Costs related to passports and travel visas when necessary to accomplish the official business purpose of the trip
  • Costs related to vaccinations required and/or recommended for international business travel
  • Currency conversion fees, including lost currency value associated with exchange trade-in value
  • Hotel maid service tips for international lodging, when required by custom
  • Insurance: Personal Accident for rental cars-international (PAI,SLI,PEP,PEI)
  • Insurance: Emergency evacuation/repatriation (international destinations only)
  • Insurance: Trip cancellation (only for situations where a non-refundable airfare was booked for a trip where interruption/cancellation is likely and insurance coverage is less expensive than a fully refundable airfare)
  • Laundry and cleaning expenses on trips lasting seven calendar days or more

Non-reimbursable expenses include, but are not limited to, the following:

  • Airline, car, and card membership dues and club fees, including daily club fees
  • Air travel/TSA Pre-Check expedited security clearance memberships
  • Travel upgrade fees, when fees are for personal choice rather than business need
  • Alcoholic beverages
  • Bank charges for ATM withdrawals, except during international travel
  • Check cashing fees
  • Childcare and dependent care costs
  • Clothing and toiletry items
  • Commuting between Residence and Primary Work Station/Headquarters
  • Country Club dues
  • Expenses related to vacation or personal days taken before, during, or after a business trip
  • Gas/fuel charges for personal vehicles (the approved mileage rate includes estimated allowance for gas, wear and tear on the vehicle, and maintenance)
  • Expenses that are not paid out of pocket or paid with gift cards
  • Haircuts and personal grooming
  • Insurance: Personal Accident for rental cars-domestic (PAI,SLI,PEP,PEI) and other personal expenses such as rental of child car seats, additional driver (unless on official GT business), and roadside assistance (otherwise covered using state contract vendors)
  • Laundry, cleaning, pressing costs for trips of less than seven days
  • Lost Baggage
  • Loyalty or reward points including skymiles
  • Luggage or briefcases
  • Medical expenses while traveling (Exceptions may be made to accommodate ADA compliance)
  • Mini-bar charges
  • Movies and pay-for-view entertainment
  • No-show/Cancellation fees or fees related to hotel late check-out (unless business or weather related)
  • Non-insured loss of cash/personal belongings
  • Personal reading materials (magazines, newspapers, etc)
  • Personal vehicle maintenance (the approved mileage rate includes estimated allowance for gas, wear and tear on the vehicle, and maintenance)
  • Personal entertainment
  • Personal pet care
  • Personal business gifts (except when required by international business custom, if allowable funds are used)
  • Recreational expenses including fitness center access and spa treatments
  • Traffic citations, parking tickets, court fees, or other fines
  • Travel accident insurance premiums
  • Travel expenses for dependents that accompany employees on official business trips
  • Valet services for parking, when self-parking options are available, unless there are valid security reasons
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Travel & Expense – Purchase & Payment Miscellaneous Travel Expenses

Uw system administrative policy 430 (formerly 1205 (ans)).

Effective: October 05, 2015

Revised: August 20, 2015

This policy applies to any miscellaneous travel expenses paid on behalf of or reimbursed to employees, students, contractors, invited guests, other non-employees with University funds.

Introduction

This policy has been issued under the authority of the Board of Regents as it relates to the governance of university travel and expense policies created under Wis. Stat. s. 36.11(56) .

References and Constraints

Regent Policy Document 21-5, University Travel Policies

UW System Administrative Policy 405 (SYS 405), Travel & Expense – General Policies (formerly 1200 (ANS))

UW System Administrative Policy 435 (SYS 435), Headquarters City & UW System-Sponsored Events Policy

University System Purchasing Card Policies

UW System Administrative Policy 336 (SYS 336), Sales and Use Tax (formerly F2)

IRS Publication 463

Definitions

Please review keyword definitions in relation to the above policy.

Business Objectives of Policy

  • Define miscellaneous travel expenses
  • Define purchase and payment requirements
  • Prescribe receipt and expense reporting requirements in accordance with applicable tax laws

Policy Statement

This policy and any related procedures apply to all individuals, including employees, students, consultants/contractors and other non-employees, traveling on behalf of the University and requesting payment or reimbursement of miscellaneous travel expenses.

Miscellaneous travel expenses are defined as those costs not considered primary means of transportation, lodging related or included under the University’s meal and incidental per diem allowance.

Where miscellaneous transportation is expected to be the primary transportation, comparison of cost must be made to the most reasonable form of other public transportation, typically airfare.  See UW System Administrative Policy 410 (SYS 410),  Purchase & Payment of Business Air Travel for comparison and receipting requirements.

Miscellaneous Travel Expenses

Train travel.

  • Travel by train is limited to coach unless overnight, where accommodations are limited to a roomette. The payment or reimbursement for intercity train travel will not exceed the lowest cost of the most reasonable form of other public transportation.
  • The origin starting point, destination and business purpose must be indicated on the reimbursement request.
  • Receipts are required for all train travel regardless of cost.
  • Reimbursement shall not exceed lowest cost of the most reasonable form of other public or commercial transportation options.
  • Receipts must be provided if the one-way or round-trip fare, or bus pass for extended use, exceeds $25.

Taxi/Shuttle/Airport Limo/Car Service

  • Reasonable and necessary charges for taxi, shuttle, airline limousine, or car service (i.e. Uber, Lyft etc.) including tips, up to a maximum of 20% of the fare, is reimbursable when other modes of travel are not available or practical.
  • To avoid unnecessary taxi or car service expenses, travelers should utilize regularly scheduled airport bus or shuttle service between terminal facilities and hotels. Many of these options are complimentary or obtainable at minimal cost.
  • Receipts must be provided if the one-way or round-trip fare exceeds $25.

Registration Fees

  • Registration fees for conferences, conventions, training, seminars, meetings, events or other programs may be centrally paid or reimbursed.
  • Documentation must include the business purpose, event dates, location, title of the event, the amount of the registration fee and the breakdown of specific costs (meals, materials, etc.) included in the fee.
  • Adequate documentation often requires obtaining both a payment receipt and a copy of the applicable page from the brochure, application or registration form.
  • Expenses for spouse, other family members, and non-business related activities, such as sightseeing tours, golf, etc. are not payable or reimbursable by the University.
  • Receipts are required for all registration fees regardless of cost.
  • Toll costs incurred while traveling for business are reimbursable.
  • Advance deposits placed on individual toll pass accounts are not reimbursable, only the pass dollars used to cover the business tolls for the trip will be reimbursed.
  • Parking when traveling outside the headquarter city.
  • Short term parking costs incurred by driver when traveler is being picked up/dropped off at a transportation station or terminal etc.
  • Parking charges incurred within headquarter city, but not at the employee’s worksite, such as those incurred for dropping off or picking up documents, supplies, etc. Parking charges at the headquarter worksite (office, etc.) are not reimbursable.
  • Receipts must be provided for any parking over $25.

Vehicle Rental Gas

  • Receipts are required for all gas purchases related to vehicle rentals regardless of cost.

Hotel, Air Internet Use or Other Business Communication Needs

  • Reasonable costs for required business use of the internet or wireless network incurred at the lodging site, during air travel, etc. will be reimbursed.
  • Travelers must provide a business purpose as explanation for the cost.
  • Receipts are required for any costs over $25.

Foreign/International

  • travel visas
  • required inoculations/vaccinations
  • foreign transaction fees incurred on corporate cards
  • business communications, including international calling plans when accompanied by business justification (individual phone calls are part of the M&IE per diem allowance)
  • Receipts are required for all of the above regardless of cost.

Payment or Reimbursement of Miscellaneous Travel Costs

Approved payment methods for University travel and related costs are University Purchasing Cards approved for travel, institutional or individual liability Corporate Travel Cards. With the exception of registration fees and intercity transportation that maybe pre-paid by the University, all miscellaneous travel expenses will be handled as post-travel reimbursements.

Non-Compliance

The University will not reimburse any miscellaneous travel expenses that are non-compliant with travel policy.

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Everything you need to know about travel expenses

Travel Expenses

Everything You Need to Know About Travel Expenses

Travel Expenses

Did you know that the average three-day domestic trip costs between $990-$1,293 ? That's a lot of money and can add up quickly if you're not careful. In this article, we're going to look at some of the most common travel expenses and how to save money on them. We'll also discuss some tax deductions that may be available to you. So let's get started!

What counts as a travel expense?

Travel expenses can add up quickly, so it's important to be aware of what does and does not count as business-related travel expenses.

So, what exactly is a business-related travel expense? The IRS defines it as "an expense incurred while away from home on business." This includes things like travel to and from meetings, conferences, and business-related events. It can also include expenses related to lodging, meals, and transportation.

Costs that occur while you're traveling away from home for business purposes, such as airfare or mileage, hotel expenses, and food, can all be considered business-related travel expenses. However, personal expenses, such as new shoes or clothing, do not count as business-related travel expenses, even if you purchase them while traveling. Keep this in mind when budgeting for your next business trip to make sure you include all relevant expenses.

Types of Travel Expenses

There are several different types of travel expenses, and it's important to understand what each one is before you start planning your trip. This way, you can include all relevant costs in your budget.

Accommodations and Lodging

One of the most common travel expenses is accommodations and lodging. This can include anything from a hotel room to an Airbnb rental. If you need to pay for overnight accommodations on a work trip, whether that's a hotel or other type of lodging, it counts as a travel expense. Of course, your lodging costs have to be within reason, so don't expect to be able to deduct a luxurious resort.

Transportation

Another common travel expense is transportation. This includes things like airfare, train tickets, taxis, and rental cars. However, it's important that depending on your mode of transportation, the things you can deduct as travel expenses may vary. For example, if you're renting a car, you can deduct the cost of gas as a travel expense, or if you're using your vehicle, you can deduct your mileage at the standard mileage rate. For 2022, that rate is 62.5 cents per mile.

Airfare Is also considered a travel expense. However, if you pay for your flight with frequent flier miles or other rewards points, or if a client provides your ticket, you cannot write off airfare as a travel expense. 

Food and Meals

One of the common questions people have about travel expenses is whether or not they can deduct food and meals. And the answer is, it depends. If you're on a business trip that lasts longer than a day, you can deduct 50 percent of the cost of your meals as a travel expense. However, if your trip is less than 24 hours, you can't deduct any of your meal expenses.  

Miscellaneous Travel Expenses

There are also a few other miscellaneous travel expenses that you may incur while on a business trip. These can include things like laundry, tips, business-related communication, and shipping and handling of luggage or work-related materials. As with food and meals, these expenses can only be deducted if your trip lasts longer than a day.

Travel Expenses You Can't Write Off

There are many different types of travel expenses that can be written off on your taxes, but there are also some that you cannot. It's important to be aware of both so that you can accurately calculate your tax bill. Here are examples of travel expenses you CAN NOT deduct.

Entertainment

One type of travel expense that you can not deduct is entertainment. This includes things like tickets to a show or a ball game, golf fees, and other recreational activities. Even if you're entertaining a potential client or business associate, you can not deduct the cost as a business expense.

Traveling with family and friends

If you're traveling with family or friends, the IRS doesn't allow any of their travel expenses to be deducted. However, you might be able to deduct some expenses if you can prove that the trip was for business purposes and that your family members or friends were acting as employees or contractors.

Lavish and extravagant expenses

The IRS also does not allow any extravagant expenses to be deducted as travel expenses. This includes things like first-class airfare, luxury hotels, or expensive meals. If you're not sure whether or not an expense is considered lavish or extravagant, the IRS says that it's "an expense isn't considered lavish or extravagant if it's reasonable based on facts or circumstances."

Travel that is compensated

If you're compensated for your travel, whether that's through reimbursement or a per diem, you can not deduct those expenses as business travel expenses. This includes things like airfare, lodging, and meals. The only exception to this rule is if you're an employee of a church or a qualified non-profit organization and you're traveling on behalf of the organization.

Personal vacations

Last but not least, you can not deduct any expenses for personal vacations. Even if you do some work while you're on vacation, like checking your email or attending a business meeting, you can not deduct any of those expenses.

How to manage the travel expenses for your business

Now that you know what types of travel expenses can be deducted, it's time to learn how to manage them. 

Step 1: Decide the payment method

The first step is to decide how the travel expenses will be paid. You can either ask the employee to pay upfront and then be reimbursed, or you can pay the expenses directly from a company bank account or company credit card.  

For many businesses, the simplest way to handle expenses is to ask employees to pay for them out of their own pockets and then submit expense claims for reimbursement. However, this can be a time-consuming process for both administrators and staff because expense reports need to be filled out and submitted, and then the claims need to be reviewed and processed.

However, with Ontheclock Employee App , the employees can submit their r eceipts electronically , and administrators approve the claims quickly. This saves everyone valuable time in managing this process!

Step 2: Set out a clear process for expense submission

The next step is to set out a straightforward process for employees to follow when submitting expenses. This will help to ensure that all the necessary information is included and will make it easier for you to process the claims.

To do this, you can create an expense policy that outlines what types of expenses are eligible for reimbursement and how employees should go about submitting their claims. For example, you might require employees to submit original receipts or to submit their claims within a specific timeframe.

Step 3: Communicate the expense policy

Travel expenses can be a minefield for companies, and many struggle to strike the right balance between keeping costs down and making sure employees are comfortable on business trips. It's well known that many companies have strict rules around expenses and that employees often try to find ways to get around them. This can leave the business in a difficult situation, as they may either have to pay the bill or leave the employee out of pocket. The best way to avoid this is to make sure that you have a clear and concise policy in place and that all employees are familiar with it. By doing so, you can minimize the risk of expenses spiraling out of control and ensure that everyone is happy with the arrangements.

Some ways to ensure that employees know and understand the expense policy are to:

  • Send out the policy in a company-wide email every quarter
  • Talk about it at all-hands meetings
  • Post it on the company intranet
  • Provide training on the policy when new employees join the company

How to calculate and track business travel expenses

When it comes to business travel, Admins and those in expense management are always looking for ways to make the process more efficient and cost-effective. Fortunately, there are a few simple steps that can make a big difference when it comes time to report on quarterly or yearly travel spending.

Keep track of all travel expenses

The first step is to make sure that all travel expenses are being tracked. This can be done using a variety of methods, such as expense reports, credit card statements, or receipts.

Classify expenses by type

Once all of the expenses have been collected, they can then be classified by type. This will make it easier to see where the majority of the spending is taking place and will help to identify any areas where costs could be reduced.

Calculate the total cost of travel

The next step is to calculate the total cost of travel. This can be done by adding up all of the expenses for each trip or by using a software program that will automatically calculate the total cost based on the information that is entered.

Track spending over time

Once the total cost of travel has been calculated, it is then possible to track spending over time. This can be done by creating a spreadsheet or using software that will allow you to track spending on a monthly or quarterly basis.

Compare spending to budget

The final step is to compare the total travel spending to the budget that was set at the beginning of the year. This will help to identify any areas where spending is exceeding the budget and will allow for corrective action to be taken.

By following these steps, Admins and those in expense management will be able to track and report on business travel expenses more effectively. This will ultimately lead to a better understanding of where the company's money is being spent and will help to identify areas where costs can be reduced.

How to reduce travel expenses for small businesses

  • Use public transportation

When possible, use public transportation instead of renting a car. This can be a great way to save money, as well as avoiding the hassle of dealing with parking and traffic.

  • Book in advance

Another way to save money on business travel is to book your flights and hotel rooms in advance. This will allow you to take advantage of early-bird discounts and will ensure that you get the best possible rates.

  • Stay in budget hotels

There is no need to stay in a luxury hotel when traveling for business. There are many budget-friendly options that will still provide a comfortable place to stay.

  • Save on entertainment expenses

When it comes to entertainment, there are many free or low-cost options available. Instead of going to a fancy restaurant or bar, consider going for a walk or exploring the local area.

By taking a few simple steps, it is possible to save money on business travel without compromising the quality of the trip. By using public transportation, booking in advance, and staying in budget hotels, small businesses can save money on travel expenses. Additionally, bringing your own food and saving on entertainment expenses can help to further reduce the cost of business travel. Finally, don't forget to recover the tax on your business travel expenses!

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What is Miscellaneous Expenses? Examples And List

Updated on : Sep 26th, 2023

While deciding on a budget for a company, it is extremely important to consider all the costs that the company might have to bear. One of the important aspects that must be considered in this regard is miscellaneous expenses. 

The  company incurs miscellaneous expenses  during a specific accounting period. These are small values and are not important enough for a separate ledger account. Keep reading to find out all you need to know about miscellaneous expenses, along with examples.

What are Miscellaneous Expenses?

Miscellaneous expenses  can be defined as a  cost that generally does not fit any specific account ledger  or tax category. These are typically minor transactions that are identified and tracked by the companies. They typically include small and non-recurring expenses like fees, items bought for office or business trips, etc. 

These expenses are often unforeseen or irregular and do not usually fit budgetary allocation. As they are unexpected, they can vary from month to month and year to year. Though they are insignificant individually, together, they can add up and impact an organisation's budget over time. Miscellaneous costs are a part of a company's operating costs. 

Given their unpredictable nature, allocating certain portions of the budget for handling miscellaneous costs is important. Therefore, while budgeting, companies must allocate funds to cover all the necessary costs without going overboard or overspending with allocations.

Businesses need to see these costs more clearly so that they can manage their money better. These expenses can help companies identify the areas of potential growth or cost savings. Also known as sundry, out-of-pocket, general or incidental expenses, different companies refer to miscellaneous costs differently depending on the industry and context.

There are various ways that you can use for managing miscellaneous expenses in a proper manner. This includes creating a miscellaneous category in the budget for meeting unforeseen expenses. Companies can create an emergency fund to reduce the financial impact of such unexpected requirements. 

Another way can be to keep track of the expenses in order to identify a pattern of the expenses for adjusting the budget accordingly. Companies need to prioritise expenses and control any unnecessary spending to reduce miscellaneous expenses. It is best to research and compare prices before purchasing for business purposes.

Miscellaneous Expense in Accounting

In accounting, miscellaneous expenses are small transactions that usually do not fit any ledger's specified accounts. However,  businesses must keep a record  and  account for it in their business ledger  account. In case items under  miscellaneous expenses increase  in usage and size, they should be  given their own account .

Companies maintain different types of ledgers and journals for financial record-keeping and accounting purposes. Different types of income and expenses have their ledgers, including utility ledgers and sales ledgers for incoming and outgoing expenditures. 

This miscellaneous expense category is, however, given its own line on an income statement account for the purpose of clear and concise tax return filing. Companies can end up getting tax deductions on their miscellaneous expenses for business purposes as per tax regulations.

Miscellaneous Expenses Examples

Miscellaneous expenses depend on individual situations. Following are some scenarios to get a better understanding of miscellaneous charges:

Scenario 1:  Suppose XYZ company is a shoe manufacturer. The company bears different types of expenses, such as rent, raw materials, advertising, etc., that are regular expenses for the day-to-day operation of the company. This company received an order of 1000 customised shoes from ABC International. 

At the time of delivery, it was found out that a special logo was not pasted on 500 shoes. The company spends Rs. 10,000 extra for those special logos and sticks them on the 500 shoes. This additional Rs. 10,000 is known as a miscellaneous expense as it does not fall into the category of any regular expenditure, and it is a small amount. Therefore, while preparing the balance sheet, XYZ company classifies Rs. 10,000 under miscellaneous expenses.

Scenario 2:  Let's say ABC company recently had a product launch. However, the product did not turn out to be of good quality. Therefore, to address the customers' needs and to find out their problems, the company organises a special meet-and-greet event. 

The company incurs certain expenses in relation to the event. Some of these expenses include catering, booking a venue, etc. These expenses can be included in the miscellaneous expenses account.

Miscellaneous Expenses List

Miscellaneous expenses are additional costs that a business incurs as they are not related to the core operation. Here is a list of some of the miscellaneous expenses that a company might have to incur:

  • Repair and Maintenance:  In case there is a need for any unexpected repairs or maintenance for company assets like machines or vehicles.
  • Unforeseen Emergencies:  These are expenses for unexpected events like natural disasters, medical emergencies, car accidents, etc.
  • Travel Costs:  These are incurred during travel and include baggage fees, tolls, parking, lodging, meals, etc.
  • Professional Services:  These include fees paid to lawyers, consultants, and accountants for their services.  
  • Professional Development Training:  These provide employees with the necessary knowledge and skills to keep them updated.
  • Marketing Expenses:  These include activities in relation to advertising or for creating public awareness about the products and services that the company offers.
  • Bank Charges and Fees:  Companies have to incur charges for ATM withdrawals, wire transfers, overdraft fees, etc.
  • Office Supplies:  These are miscellaneous expenses for printer ink, stationery items and other small office supplies.
  • Subscription and Membership Charges:  Costs for subscribing to periodic publications or business-related courses fall under this category.
  • Clothing or Job Uniforms:  Expenses for providing clothes required for safety reasons.
  • Job Search Cost:  Expenses associated with finding and hiring new employees.
  • Gifts and Donations:  Costs incurred to purchase gifts for birthdays or weddings and donations for charity events.

There are several advantages to tracking miscellaneous expenses. This includes ensuring that money is not spent frivolously, and it also helps to keep expenses low. By tracking miscellaneous expenses, taxpayers get an accurate picture of what deductions they might be eligible for. Further, it gives a fair idea to business owners regarding the current financial situation and helps them make smart decisions.

Frequently Asked Questions

What are miscellaneous expenses in accounting.

Miscellaneous expenses are a set of small transactions that do not fit in a ledger's specified accounts. Therefore, companies need to record them in a business's general ledger account. In case these expenses increase, then they need to be given a separate account.

What are some examples of miscellaneous expenses?

Some examples of miscellaneous expenses include repair and maintenance, bank charges and fees, office supplies, travel expenses, gifts and donations, professional services, etc.  

Is miscellaneous a direct expense?

No, miscellaneous expenses are indirect expenses. Companies show these expenses in the expenses side of the profit and loss account.

Is miscellaneous expense a fixed or variable cost?

Miscellaneous expenses are variable costs as they keep on changing month to month and year to year. This is because miscellaneous expenses are irregular and unforeseen and do not fit any budgetary allowance.

How to calculate miscellaneous expenses?

The best way to estimate miscellaneous expenses is by assessing the financial history of the company and then calculate the anticipated miscellaneous needs. Though the miscellaneous expense category is short, it is better to overestimate than to fall short of budget.

Is miscellaneous expense an operating expense?

Yes,    miscellaneous expenses are considered part of a company's operating cost. These are random and infrequent expenditures which are unusual in nature.

Is a telephone bill a miscellaneous expense?

Yes, you can categorise telephone bills as a miscellaneous expense. This includes costs associated with the phone and any monthly service fees.

About the Author

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Non-Reimbursable Examples

**Note that this is not an exhaustive list, these are just common examples of expenses that are not reimbursable. 

**If an expense is not mentioned in UW Travel Policy, this does not guarantee it is an allowable expense for travel reimbursement. 

Alcohol - It is best to approach alcohol as not being reimbursable. There are some instances where alcohol may be reimbursable on a 64 discretionary budget if the funding allows for it. 

  • Continuing education credits - tuition for professional development/job-related courses  - See UW Tax Office page ' Fringe Benefits ' 
  • Exchange of funds between travelers -  for example one traveler paying another traveler their share for a lodging accommodation, reimbursement must go to the traveler who actually paid the hotel expense 
  • Bitcoin is also not allowable purchase method
  • Unable to obtain a clear audit trail to substantiate expenses - More information
  • Missed/changed/cancelled flight expense due to negligent travel planning
  • Fines for parking tickets, citations or infractions received while operating a vehicle while on UW business (note that policy on this is very strict and is not open to reimbursement on any form of discretionary funding as it is blocked by state legislature) 
  • Delivery of fuel for car rental or personal car
  • Retrieval of keys from locked vehicles
  • Jump starting vehicle
  • Gifts - if department is looking to reimburse a gift we recommend consulting with Procurement ( [email protected] , 206.543.4500) to see if it is eligible for reimbursement on an XR (eReimbursement)  
  • Expenses related to commute - more information
  • Religious Reasons
  • Example: desire for a tastier option
  • Note that the entire car rental is not reimbursable. more information
  • Public transportation passes (orca card, metro card, etc.) unless the amount can be prorated/auditable to UW business cost only
  • Bicycle Mileage
  • Tips given to porters, baggage carriers, bellhops, hotel maids, stewards/stewardesses or other services provided
  • Foreign transaction/processing fees
  • Foreign currency exchange/conversion 
  • Medical insurance & medical/hospital fees
  • Ex: (staying at a family/friend/acquaintance house/timeshare and them writing a receipt) 
  • Optional conference/meeting events that are social in nature
  • Travel expenses related to spouse/dependents
  • Personal electronic accessories (even if they are used for business) 
  • In room movies
  • Alcohol (minibar) 
  • Other optional amenities
  • Valet (when self park or other reasonable options available) 
  • Airport lounge fees
  • High occupancy lane (HOT) tolls - i.e. i405 tolls in WA 
  •  Ex: selecting a higher class car on the Uber or Lyft app, suite at hotel
  • Savings achieved from making personal decisions do not translate to a reimbursable value. For example if a traveler chooses to stay at a friends house instead of a hotel at the business location these savings to not translate to them receiving the lodging per diem or supplementing for other expenses they weren't eligible for. 
  • Travel Insurance (Trip Protection, Travel Cancellation Package, etc.) - unless a mandatory/unavoidable cost of doing business for example the program the traveler is participating in required them to purchase it and there was no way to get around it. Travelers are protected under our change/cancellation of travel plans policy.
  • Trusted Traveler Programs (TSA pre-check, Nexus, global entry, etc.)  

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6 common miscellaneous expenses examples | tax deduction tips for small businesses.

6 Common Miscellaneous Expenses Examples | Tax Deduction Tips for Small Businesses

Miscellaneous expense examples include clothes, a computer, equipment, a work uniform and work boots, with some exceptions. Miscellaneous expenses are defined by the IRS as any write off that doesn’t fit into one of their tax categories. Small business owners can claim these expenses to reduce their taxable income .

Miscellaneous expenses must be itemized in your taxes; you can’t take the standard deduction for them. Use Schedule A to claim them. Below are six common examples of miscellaneous expenses, how they can be written off and what exceptions apply. The IRS has a complete miscellaneous expense list.

In this article, we’ll cover:

Can You Write off Clothes for Work?

Can you write off a computer for work, can you write off equipment for business.

Yes, you can write off clothes for work as long as they’re necessary for your job and you can’t wear them in your everyday life, according to the IRS .

  • For example, a musician or entertainer can write off the cost of theatrical clothing they can’t wear in their day-to-day life.

Any clothes your employer requires can be written off, as well, as long as your regular clothing isn’t a suitable replacement.

Any safety items can definitely be written off. This includes safety boots or shoes, work gloves, hard hats and safety glasses. Here are some professions that should be able to write off safety clothing:

  • Electricians
  • Cement workers
  • Chemical workers

miscellaneous travel expenses examples

No, you can’t write off the cost of a new computer for work. However, you can claim a depreciation deduction for any computer that is needed for you to carry out your work, according to the IRS .

Depreciation is the decrease in value of an item due to regular wear and use.

Many small businesses will absolutely need a computer for work. But, if you have a computer at your office and you use your home computer for work less than 50 percent of the time, then you won’t be able to claim the depreciation deduction for your home computer, only your office computer.

If you use your business computer more than 50 percent of the time in your work, you can claim accelerated depreciation. If you use your computer less than 50 percent of the time in your work, you need to claim the straight line method of depreciation.

  • Important Exception: if you use a computer in what qualifies as a home office, you can claim accelerated depreciation even if you use your computer less than 50 percent of the time in your work. You may also be able to claim a service 179 deduction for the year you started using the computer for work (usually the year you bought it). A home office is a part of your home you use often and exclusively for business, according to the IRS .

Use Form 4562 to claim the depreciation deduction for a computer you began to use for business in 2017 and after, as well as the service 179 deduction mentioned above (if applicable). The instructions for Form 4562 will help you figure out how to calculate depreciation .

If you began to use your computer before 2017, you can report depreciation in Schedule C , the usual form small businesses use to claim deductions.

Yes, you can write off equipment for business. The equipment must be used in your home for business purposes, says the IRS .

Equipment includes computers and any related computer equipment as well as photographic, phonographic and video recording equipment. The rules for writing off computers and other equipment are above .

In a nutshell, computers and equipment used in your home office have different rules for deductions. Other situations, like a home camera you use occasionally for business, can be deducted based on whether you use it more than 50 percent of the time for your small business or less.

  • For example, a graphic designer with an out-of-home office uses her personal computer at home 25 percent of the time for work. She can’t claim depreciation of this computer on her taxes. If she uses it 60 percent of the time for work, she can. Form 4562 and/or Schedule C will help her claim this deduction.

You must keep a record of how much you use personal equipment for business use. It is best to keep a log or other such diary. The IRS requires such back-up evidence in order for you to claim depreciation or a section 179 deduction.

People also ask:

Can You Write off Suits for Work?

Can you write off uniforms on taxes, can you write off work boots on taxes.

No, you can’t write off suits for work. You can only write off clothes for work as long as they’re not usable for everyday wear, according to the IRS . Suits are appropriate clothes off the job, unlike safety boots or a fireman’s gear.

  • For example, a musician needs to buy a suit for his performances. Still, he would be able to wear this suit at weddings and other formal occasions not related to his work. So, he can’t write off his suit on his taxes.

Even if your employer requires you to wear a suit, it can’t be written off. This is because the IRS only lets you deduct required clothing as long as your regular clothing isn’t a suitable replacement. A suit is regular clothing, something you might already have hanging in your closet for your non-work life, unlike items like safety goggles or a hard hat.

miscellaneous travel expenses examples

Yes, sometimes you can write off uniforms on taxes. The same rules governing clothes (see section above) applies to uniforms too, with some exceptions.

Uniforms are only deductible if they’re required by your employer (such as a franchise) and they aren’t suitable for everyday wear.

  • For example, a painter might be required by his union to wear a white shirt and overalls, standard work shoes and a white cap. But there items could easily be worn in day-to-day life. An employee like a welder might be requested to wear blue clothes, but blue clothes could also be worn day-to-day. These clothes can’t be written off on their taxes.

Uniforms for the following profession could be written off, according to the IRS :

  • Delivery workers
  • Fire fighters
  • Health care workers
  • Law enforcement
  • Letter carriers
  • Professional athletes
  • Transportation workers (like a bus driver)

Military uniforms can’t be written off if you’re on full-time duty or you’re a student at a military academy. Civilian teachers or staff can deduct the cost of their uniforms.

Yes, you may be able to write off work boots on your taxes. Safety boots can be deducted if they are necessary to your work and required by your employer (if applicable).

Boots that can be work in your everyday life can’t be deducted. Even if you wear your boots exclusively for your job, if they could be worn off the job, they can’t be written off.

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Armed Forces reservist (member of a reserve component).

Armed Forces reservists traveling more than 100 miles from home.

Qualified performing artist.

Fee-basis state or local government official.

Employee with impairment-related work expenses.

Eligible educator.

Qualified expenses.

Appraisal Fees

Casualty and theft losses, clerical help and office rent, credit or debit card convenience fees, depreciation on home computer, fees to collect interest and dividends, fines or penalties, hobby expenses.

Nonpublicly offered mutual funds.

Investment Fees and Expenses

Legal expenses, loss on deposits, loss on ira, repayments of income, repayments of social security benefits, safe deposit box rent, service charges on dividend reinvestment plans, tax preparation fees, trustee's administrative fees for ira, list of nondeductible expenses, adoption expenses, commissions.

Legal fees.

Capital Expenses

Check-writing fees on personal account, commuting expenses, health spa expenses, home security system, investment-related seminars, life insurance premiums.

Covered executive branch official.

Dues used for lobbying.

Exceptions.

Lost or Mislaid Cash or Property

Lunches with co-workers, meals while working late, personal legal expenses, political contributions, professional accreditation fees, professional reputation, relief fund contributions, residential telephone service, stockholders' meetings, tax-exempt income expenses, travel expenses for another individual, voluntary unemployment benefit fund contributions, wristwatches.

Pre-1998 election to amortize bond premium.

Bonds acquired after October 22, 1986, and before 1988.

Bonds acquired before October 23, 1986.

Deduction for excess premium.

More information.

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Proof of winnings and losses.

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Revised: December 2020

Publication 529 - Introductory Material

Future developments. For the latest information about developments related to Pub. 529, such as legislation enacted after it was published, go to IRS.gov/Pub529 .

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Introduction

This publication explains that you can no longer claim any miscellaneous itemized deductions, unless you fall into one of the qualified categories of employment claiming a deduction relating to unreimbursed employee expenses. Miscellaneous itemized deductions are those deductions that would have been subject to the 2%-of-adjusted-gross-income (AGI) limitation. You can still claim certain expenses as itemized deductions on Schedule A (Form 1040), Schedule A (1040-NR), or as an adjustment to income on Form 1040 or 1040-SR. This publication covers the following topics.

Deductions for Unreimbursed Employee Expenses.

Expenses you can't deduct.

Expenses you can deduct.

How to report your deductions.

Generally, nonresident aliens who fall into one of the qualified categories of employment are allowed deductions to the extent they are directly related to income which is effectively connected with the conduct of a trade or business within the United States.

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Publication

463 Travel, Gift, and Car Expenses

525 Taxable and Nontaxable Income

535 Business Expenses

587 Business Use of Your Home (Including Use by Daycare Providers)

946 How To Depreciate Property

Form (and Instructions)

Schedule A (Form 1040) Itemized Deductions

Schedule A (Form 1040-NR) Itemized Deductions

2106 Employee Business Expenses

See How To Get Tax Help at the end of this publication for information about getting these publications and forms.

Publication 529 - Main Contents

Deductions for unreimbursed employee expenses.

You can no longer claim any miscellaneous itemized deductions that are subject to the 2%-of-AGI limitation, including unreimbursed employee expenses. However, you may be able to deduct certain unreimbursed employee business expenses if you fall into one of the following categories of employment listed under Unreimbursed Employee Expenses next, or are an eligible educator as defined under Educator Expenses , later.

Unreimbursed Employee Expenses

You can no longer claim a deduction for unreimbursed employee expenses unless you fall into one of the following categories of employment, or have certain qualified educator expenses.

Armed Forces reservists.

Qualified performing artists.

Fee-basis state or local government officials.

Unreimbursed employee expenses for individuals in these categories of employment are deducted as adjustments to gross income. Qualified employees listed in one of the categories above must complete Form 2106 to take the deduction. Certain qualified educator expenses are also deducted as an adjustment to gross income but you are not required to complete Form 2106.

You can deduct only unreimbursed employee expenses that are paid or incurred during your tax year, for carrying on your trade or business of being an employee, and ordinary and necessary.

An expense is ordinary if it is common and accepted in your trade, business, or profession. An expense is necessary if it is appropriate and helpful to your business. An expense doesn't have to be required to be considered necessary.

Categories of Employment

You can deduct unreimbursed employee expenses only if you qualify as an Armed Forces reservist, a qualified performing artist, a fee-basis state or local government official, or an employee with impairment-related work expenses.

You are a member of a reserve component of the Armed Forces of the United States if you are in the Army, Navy, Marine Corps, Air Force, or Coast Guard Reserve; the Army National Guard of the United States; or the Reserve Corps of the Public Health Service.

If you are a member of a reserve component of the Armed Forces of the United States and you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you can deduct some of your travel expenses as an adjustment to gross income. The amount of expenses you can deduct as an adjustment to gross income is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees, and tolls. The balance, if any, is reported on Schedule A.

For more information on travel expenses, see Pub. 463.

You are a qualified performing artist if you:

Performed services in the performing arts as an employee for at least two employers during the tax year,

Received from at least two of the employers wages of $200 or more per employer,

Had allowable business expenses attributable to the performing arts of more than 10% of gross income from the performing arts, and

Had adjusted gross income of $16,000 or less before deducting expenses as a performing artist.

If you are a qualified performing artist, you can deduct your employee business expenses as an adjustment to income rather than as a miscellaneous itemized deduction. For example, musicians and entertainers can deduct the cost of theatrical clothing and accessories that aren't suitable for everyday wear. If you are an employee, complete Form 2106. See Pub. 463 for more information.

You are a qualifying fee-basis official if you are employed by a state or political subdivision of a state and are compensated, in whole or in part, on a fee basis.

If you are a fee-basis official, you can claim your expenses in performing services in that job as an adjustment to income rather than as a miscellaneous itemized deduction. See Pub. 463 for more information.

Impairment-related work expenses are the allowable expenses of an individual with physical or mental disabilities for attendant care at his or her place of employment. They also include other expenses in connection with the place of employment that enable the employee to work. See Pub. 463 for more details.

If you have a physical or mental disability that limits your being employed, or substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, and working, you can deduct your impairment-related work expenses.

Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and other expenses in connection with your place of work that are necessary for you to be able to work.

Educator Expenses

If you were an eligible educator for the tax year, you may be able to deduct qualified expenses you paid as an adjustment to gross income on your Schedule 1 (Form 1040), rather than as a miscellaneous itemized deduction. See the Instructions for Forms 1040 and 1040-SR for more information.

An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in school for at least 900 hours during a school year.

Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. An ordinary expense is one that is common and accepted in your educational field. A necessary expense is one that is helpful and appropriate for your profession as an educator. An expense doesn’t have to be required to be considered necessary.

Qualified expenses also include those expenses you incur while participating in professional development courses related to the curriculum in which you provide instruction. It also includes those expenses related to those students for whom you provide that instruction.

Qualified expenses don’t include expenses for home schooling or for nonathletic supplies for courses in health or physical education. You must reduce your qualified expenses by the following amounts.

Excludable U.S. series EE and I savings bond interest from Form 8815.

Nontaxable qualified state tuition program earnings.

Nontaxable earnings from Coverdell education savings accounts.

Any reimbursements you received for those expenses that weren’t reported to you on your Form W-2, box 1.

Expenses You Can’t Deduct

In addition to the expenses that are no longer deductible as a miscellaneous itemized deduction, there are expenses that are traditionally nondeductible under the Internal Revenue Code. Both categories of deduction are discussed next.

Miscellaneous Deductions Subject to the 2% AGI Limit

Unless you qualify for an exception, you generally can't deduct the following expenses, even if you fall into one of the qualified categories of employment listed earlier.

Appraisal fees for a casualty loss or charitable contribution.

Casualty and theft losses from property used in performing services as an employee.

Clerical help and office rent in caring for investments.

Credit or debit card convenience fees.

Depreciation on home computers used for investments.

Fees to collect interest and dividends.

Hobby expenses, but generally not more than hobby income.

Indirect miscellaneous deductions from pass-through entities.

Investment fees and expenses.

Legal fees related to producing or collecting taxable income or getting tax advice.

Loss on deposits in an insolvent or bankrupt financial institution.

Loss on traditional IRAs or Roth IRAs, when all amounts have been distributed to you.

Repayments of income.

Repayments of social security benefits.

Safe deposit box rental, except for storing jewelry and other personal effects.

Service charges on dividend reinvestment plans.

Tax advice fees.

Trustee's fees for your IRA, if separately billed and paid.

Appraisal fees you pay to figure a casualty loss or the fair market value of donated property are miscellaneous itemized deductions and can no longer be deducted.

Damaged or stolen property used in performing services as an employee is a miscellaneous deduction and can no longer be deducted. For more information on casualty and theft losses, see Pub. 547, Casualties, Disasters, and Thefts.

Office expenses, such as rent and clerical help, you pay in connection with your investments and collecting taxable income on those investments are miscellaneous itemized deductions and are no longer deductible.

The convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card is a miscellaneous itemized deduction and is no longer deductible.

If you use your home computer to produce income (for example, to manage your investments that produce taxable income), the depreciation of the computer for that part of the usage of the computer is a miscellaneous itemized deduction and is no longer deductible.

Fees you pay to a broker, bank, trustee, or similar agent to collect your taxable bond interest or dividends on shares of stock are miscellaneous itemized deductions and can no longer be deducted.

No deduction is allowed for fines and penalties paid to a government or specified nongovernmental entity for the violation of any law except in the following situations.

Certain amounts that constitute restitution.

Certain amounts paid to come into compliance with the law.

Amounts paid or incurred as the result of certain court orders in which no government or specified nongovernmental agency is a party.

Amounts paid or incurred for taxes due.

Nondeductible amounts include an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). Fines or penalties include amounts paid such as parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. No deduction is allowed for the restitution amount or amount paid to come into compliance with the law unless the amounts are specifically identified in the settlement agreement or court order. Also, any amount paid or incurred as reimbursement to the government for the costs of any investigation or litigation are nondeductible.

A hobby isn’t a business because it isn’t carried on to make a profit. If you receive income for an activity that you don’t carry out to make a profit, the expenses you pay for the activity are miscellaneous itemized deductions and can no longer be deducted. See Not-for-Profit Activities in chapter 1 of Pub. 535. You must still report the income you receive on your Schedule 1 (Form 1040).

Indirect Deductions of Pass-Through Entities

Pass-through entities include partnerships, S corporations, and mutual funds that aren't publicly offered. Deductions of pass-through entities are passed through to the partners or shareholders. The partner’s or shareholder’s share of passed-through deductions for investment expenses are miscellaneous itemized deductions and can no longer be deducted.

These funds will send you a Form 1099-DIV, or a substitute form, showing your share of gross income and investment expenses. The investment expenses reported on Form 1099-DIV are a miscellaneous itemized deduction and are no longer deductible.

Investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income are miscellaneous itemized deductions and are no longer deductible.

Legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax are miscellaneous itemized deductions and are no longer deductible.

You can deduct expenses of resolving tax issues relating to profit or loss from business reported on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship), from rentals or royalties reported on Schedule E (Form 1040), Supplemental Income and Loss, or from farm income and expenses reported on Schedule F (Form 1040), Profit or Loss From Farming, on that schedule. Expenses for resolving nonbusiness tax issues are miscellaneous itemized deductions and are no longer deductible.

A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. If you can reasonably estimate the amount of your loss on money you have on deposit in a financial institution that becomes insolvent or bankrupt, you can generally choose to deduct it in the current year even though its exact amount hasn't been finally determined.

If none of the deposit is federally insured, you could deduct the loss as a nonbusiness bad debt. Report it on your Schedule D (Form 1040). You can no longer deduct the loss as an ordinary loss or as a casualty loss on your Schedule A (Form 1040).

A loss on your traditional IRA (or Roth IRA) investment is a miscellaneous itemized deduction and can no longer be deducted.

Generally, repayments of amounts that you included in income in an earlier year is a miscellaneous itemized deduction and can no longer be deducted. If you had to repay more than $3,000 that you included in your income in an earlier year, you may be able to deduct the amount. See Repayments Under Claim of Right , later.

If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you may be able to deduct part of this negative figure if the figure is more than $3,000. If the figure is less than $3,000, it is a miscellaneous itemized deduction and can no longer be deducted. See Pub. 915, Social Security and Equivalent Railroad Retirement Benefits, for additional information.

Rent you pay for a safe deposit box you use to store taxable income-producing stocks, bonds, or investment related papers is a miscellaneous itemized deduction and can no longer be deducted. You also can't deduct the rent if you use the box for jewelry, other personal items, or tax-exempt securities.

Service charges you pay as a subscriber in a dividend reinvestment plan are a miscellaneous itemized deduction and can no longer be deducted. These service charges include payments for:

Holding shares acquired through a plan,

Collecting and reinvesting cash dividends, and

Keeping individual records and providing detailed statements of accounts.

Tax preparation fees on the return for the year in which you pay them are a miscellaneous itemized deduction and can no longer be deducted. These fees include the cost of tax preparation software programs and tax publications. They also include any fee you paid for electronic filing of your return.

Trustee's administrative fees that are billed separately and paid by you in connection with your IRA are a miscellaneous itemized deduction and can no longer be deducted.

Nondeductible Expenses

In addition to the miscellaneous itemized deductions discussed earlier, you can't deduct the following expenses.

Adoption expenses.

Broker's commissions.

Burial or funeral expenses, including the cost of a cemetery lot.

Campaign expenses.

Capital expenses.

Check-writing fees.

Commuting expenses.

Fees and licenses, such as car licenses, marriage licenses, and dog tags.

Fines or penalties.

Health spa expenses.

Hobby losses—but see Hobby Expenses , earlier.

Home repairs, insurance, and rent.

Home security system.

Illegal bribes and kickbacks—see Bribes and kickbacks in chapter 11 of Pub. 535.

Investment-related seminars.

Life insurance premiums paid by the insured.

Lobbying expenses.

Losses from the sale of your home, furniture, personal car, etc.

Lost or misplaced cash or property.

Lunches with co-workers.

Meals while working late.

Medical expenses as business expenses other than medical examinations required by your employer.

Personal disability insurance premiums.

Personal legal expenses.

Personal, living, or family expenses.

Political contributions.

Professional accreditation fees.

Professional reputation improvement expenses.

Relief fund contributions.

Residential telephone line.

Stockholders’ meeting attendance expenses.

Tax-exempt income earning/collecting expenses.

The value of wages never received or lost vacation time.

Travel expenses for another individual.

Voluntary unemployment benefit fund contributions.

Wristwatches.

You can't deduct the expenses of adopting a child but you may be able to take a credit for those expenses. For details, see Form 8839, Qualified Adoption Expenses.

Commissions paid on the purchase of securities aren't deductible, either as business or nonbusiness expenses. Instead, these fees must be added to the taxpayer's cost of the securities. Commissions paid on the sale are deductible as business expenses only by dealers.

Campaign Expenses

You can't deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. These include qualification and registration fees for primary elections.

You can't deduct legal fees paid to defend charges that arise from participation in a political campaign.

You can't currently deduct amounts paid to buy property that has a useful life substantially beyond the tax year or amounts paid to increase the value or prolong the life of property. If you use such property in your work, you may be able to take a depreciation deduction. See Pub. 946. If the property is a car used in your work, also see Pub. 463.

If you have a personal checking account, you can't deduct fees charged by the bank for the privilege of writing checks, even if the account pays interest.

Generally, you can't deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs.

You can't deduct dues paid to an organization if one of its main purposes is to:

Conduct entertainment activities for members or their guests, or

Provide members or their guests with access to entertainment facilities.

Dues paid to airline, hotel, and luncheon clubs aren't deductible.

You can't deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). If you fall into one of the qualified categories of employment discussed under Unreimbursed Employee Expenses , earlier, and you haul tools, instruments, or other items in your car to and from work, you can deduct only the additional cost of hauling the items, such as the rent on a trailer to carry the items.

Nondeductible amounts include an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). Fines or penalties include amounts paid such as parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike.

No deduction is allowed for the restitution amount or amount paid to come into compliance with the law unless the amounts are specifically identified in the settlement agreement or court order. Also, any amount paid or incurred as reimbursement to the government for the costs of any investigation or litigation are nondeductible.

You can't deduct health spa expenses, even if there is a job requirement to stay in excellent physical condition, such as might be required of a law enforcement officer.

You can't deduct the cost of a home security system as a miscellaneous deduction. However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. See Home Office under Expenses You Can Deduct , later, and Pub. 587.

You can't deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes.

You can't deduct premiums you pay on your life insurance. You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. See Pub. 504, Divorced or Separated Individuals, for information on alimony.

Lobbying Expenses

You generally can't deduct amounts paid or incurred for lobbying expenses. These include expenses to:

Influence legislation;

Participate, or intervene, in any political campaign for, or against, any candidate for public office;

Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums; or

Communicate directly with covered executive branch officials in any attempt to influence the official actions or positions of those officials.

Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities.

A covered executive branch official, for the purpose of (4) above, is any of the following officials.

The President.

The Vice President.

Any officer or employee of the White House Office of the Executive Office of the President, and the two most senior level officers of each of the other agencies in the Executive Office.

Any individual serving in a position in Level I of the Executive Schedule under section 5312 of title 5, United States Code, any other individual designated by the President as having Cabinet-level status, and any immediate deputy of one of these individuals.

If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you can't deduct that part.

You can deduct certain lobbying expenses if they are ordinary and necessary expenses of carrying on your trade or business.

You can deduct in-house expenses for influencing legislation or communicating directly with a covered executive branch official if the expenses for the tax year aren't more than $2,000 (not counting overhead expenses).

If you are a professional lobbyist, you can deduct the expenses you incur in the trade or business of lobbying on behalf of another person. Payments by the other person to you for lobbying activities can't be deducted.

You can't deduct a loss based on the mere disappearance of money or property. However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. See Pub. 547.

You can't deduct the expenses of lunches with co-workers, except while traveling away from home on business. See Pub. 463 for information on deductible expenses while traveling away from home.

You can't deduct the cost of meals while working late. However, you may be able to claim a deduction for 50% of the cost of the meals if you are traveling away from home. See Pub. 463 for information on deductible expenses while traveling away from home.

You can't deduct personal legal expenses such as those for the following.

Custody of children.

Breach of promise to marry suit.

Civil or criminal charges resulting from a personal relationship.

Damages for personal injury (except certain whistleblower claims and unlawful discrimination claims). For more information about unlawful discrimination claims, see Expenses You Can’t Deduct , earlier.

Preparation of a title (or defense or perfection of a title).

Preparation of a will.

Property claims or property settlement in a divorce.

You can't deduct these expenses even if a result of the legal proceeding is the loss of income-producing property.

You can't deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate aren't deductible.

You can't deduct professional accreditation fees such as the following.

Accounting certificate fees paid for the initial right to practice accounting.

Bar exam fees and incidental expenses in securing initial admission to the bar.

Medical and dental license fees paid to get initial licensing.

You can't deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation.

You can't deduct contributions paid to a private plan that pays benefits to any covered employee who can't work because of any injury or illness not related to the job.

You can't deduct any charge (including taxes) for basic local telephone service for the first telephone line to your residence, even if it is used in a trade or business.

You can't deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you own stock but have no other interest. You can't deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments.

You can't deduct expenses to produce tax-exempt income. You can't deduct interest on a debt incurred or continued to buy or carry tax-exempt securities.

If you have expenses to produce both taxable and tax-exempt income, but you can't identify the expenses that produce each type of income, you must divide the expenses based on the amount of each type of income to determine the amount that you can deduct.

You generally can't deduct travel expenses you pay or incur for a spouse, dependent, or other individual who accompanies you (or your employee) on personal or business travel unless the spouse, dependent, or other individual is an employee of the taxpayer, the travel is for a bona fide business purpose, and such expenses would otherwise be deductible by the spouse, dependent, or other individual. See Pub. 463 for more information on deductible travel expenses.

You can't deduct voluntary unemployment benefit fund contributions you make to a union fund or a private fund. However, you can deduct contributions as taxes if state law requires you to make them to a state unemployment fund that covers you for the loss of wages from unemployment caused by business conditions.

You can't deduct the cost of a wristwatch, even if there is a job requirement that you know the correct time to properly perform your duties.

Expenses You Can Deduct

You can deduct the items listed below as itemized deductions. Report these items on your Schedule A (Form 1040), or your Schedule A (Form 1040-NR).

List of Deductions

Amortizable premium on taxable bonds.

Casualty and theft losses from income-producing property.

Excess deductions (including administrative expenses) allowed a beneficiary on termination of an estate or trust.

Federal estate tax on income in respect of a decedent.

Gambling losses up to the amount of gambling winnings.

Impairment-related work expenses of persons with disabilities.

Losses from Ponzi-type investment schemes.

Repayments of more than $3,000 under a claim of right.

Unrecovered investment in an annuity.

An ordinary loss attributable to a contingent payment debt instrument or an inflation-indexed debt instrument (for example, a Treasury Inflation-Protected Security).

Amortizable Premium on Taxable Bonds

In general, if the amount you pay for a bond is greater than its stated principal amount, the excess is bond premium. You can elect to amortize the premium on taxable bonds. The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item.

Generally, if you first elected to amortize bond premium before 1998, the above treatment of the premium doesn't apply to bonds you acquired before 1988.

The amortization of the premium on these bonds is investment interest expense subject to the investment interest limit, unless you chose to treat it as an offset to interest income on the bond.

The amortization of the premium on these bonds is deducted as an itemized deduction on your Schedule A (Form 1040).

On certain bonds (such as bonds that pay a variable rate of interest or that provide for an interest-free period), the amount of bond premium allocable to a period may exceed the amount of stated interest allocable to the period. If this occurs, treat the excess as an itemized deduction on your Schedule A (Form 1040). However, the amount deductible is limited to the amount by which your total interest inclusions on the bond in prior periods exceed the total amount you treated as a bond premium deduction on the bond in prior periods.

If any of the excess bond premium can't be deducted because of the limit, this amount is carried forward to the next period and is treated as bond premium allocable to that period. If there is a bond premium carryforward as of the end of the accrual period in which the bond is sold, retired, or otherwise disposed of, treat the carryforward as an itemized deduction on your Schedule A (Form 1040).

For more information on bond premium, see Bond Premium Amortization in chapter 3 of Pub. 550.

You can deduct a casualty or theft loss as an itemized deduction on your Schedule A (Form 1040), if the damaged or stolen property was income-producing property (property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art). First report the loss on Form 4684. You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, or Form 4797. For more information on casualty and theft losses, see Pub. 547.

Generally, if an estate or trust has an excess deduction resulting from total deductions being greater than its gross income, in the estate’s or trust's last tax year, a beneficiary can deduct the excess deductions, depending on its character. The excess deductions retain their character as an adjustment to arrive at adjusted gross income on Schedule 1 (Form 1040), as a non-miscellaneous itemized deduction reported on Schedule A (Form 1040), or as a miscellaneous itemized deduction. For more information on excess deductions of an estate or trust, see the Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR.

You can deduct the federal estate tax attributable to income in respect of a decedent that you as a beneficiary include in your gross income. Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that wasn't properly includible in the decedent's final income tax return. See Pub. 559 for information about figuring the amount of this deduction.

Generally, a deduction is allowed for fines and penalties paid to a government or specified nongovernmental entity for the violation of any law in the following situations.

Gambling Losses Up to the Amount of Gambling Winnings

You must report the full amount of your gambling winnings for the year on your Schedule 1 (Form 1040). You deduct your gambling losses for the year on your Schedule A (Form 1040). Gambling losses include the actual cost of wagers plus expenses incurred in connection with the conduct of the gambling activity, such as travel to and from a casino. You can't deduct gambling losses that are more than your winnings. Generally, nonresident aliens can't deduct gambling losses on your Schedule A (Form 1040-NR).

Your diary should contain at least the following information.

The date and type of your specific wager or wagering activity.

The name and address or location of the gambling establishment.

The names of other persons present with you at the gambling establishment.

The amount(s) you won or lost.

In addition to your diary, you should also have other documentation. You can generally prove your winnings and losses through Form W-2G, Certain Gambling Winnings; Form 5754, Statement by Person(s) Receiving Gambling Winnings; wagering tickets; canceled checks; substitute checks; credit records; bank withdrawals; and statements of actual winnings or payment slips provided to you by the gambling establishment.

For specific wagering transactions, you can use the following items to support your winnings and losses.

Copies of the keno tickets you purchased that were validated by the gambling establishment, copies of your casino credit records, and copies of your casino check-cashing records.

A record of the machine number and all winnings by date and time the machine was played.

The number of the table at which you were playing. Casino credit card data indicating whether the credit was issued in the pit or at the cashier's cage.

A record of the number of games played, cost of tickets purchased, and amounts collected on winning tickets. Supplemental records include any receipts from the casino, parlor, etc.

A record of the races, amounts of wagers, amounts collected on winning tickets, and amounts lost on losing tickets. Supplemental records include unredeemed tickets and payment records from the racetrack.

A record of ticket purchases, dates, winnings, and losses. Supplemental records include unredeemed tickets, payment slips, and winnings statements.

Home Office

If you use a part of your home regularly and exclusively to conduct business, you may be able to deduct a part of the operating expenses and depreciation of your home.

You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively:

As your principal place of business for any trade or business;

As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business; or

In the case of a separate structure not attached to your home, in connection with your trade or business.

If you have more than one place of business, the business part of your home is your principal place of business if:

You use it regularly and exclusively for administrative or management activities of your trade or business, and

You have no other fixed location where you conduct substantial administrative or management activities of your trade or business.

Otherwise, the location of your principal place of business generally depends on the relative importance of the activities performed at each location and the time spent at each location.

See Pub. 587 for more detailed information and a worksheet for figuring the deduction.

These losses are deductible as theft losses of income-producing property on your tax return for the year the loss was discovered. You figure the deductible loss in Section B of Form 4684. See the Form 4684 instructions and Pub. 547, Casualties, Disasters, and Thefts, for more information.

If you had to repay more than $3,000 that you included in your income in an earlier year because at the time you thought you had an unrestricted right to it, you may be able to deduct the amount you repaid, or take a credit against your tax. See Repayments in Pub. 525 for more information.

You may be able to deduct, as an adjustment to income on your Schedule 1 (Form 1040), attorney fees and court costs for actions settled or decided after October 22, 2004, involving a claim of unlawful discrimination, a claim against the U.S. Government, or a claim made under section 1862(b)(3)(A) of the Social Security Act. However, the amount you can deduct on your Schedule 1 (Form 1040), is limited to the amount of the judgment or settlement you are including in income for the tax year. See Pub. 525 for more information.

A retiree who contributed to the cost of an annuity can exclude from income a part of each payment received as a tax-free return of the retiree's investment. If the retiree dies before the entire investment is recovered tax free, any unrecovered investment can be deducted on the retiree's final income tax return. See Pub. 575, Pension and Annuity Income, for more information about the tax treatment of pensions and annuities.

How To Report

Claim most deductions as an itemized deduction on your Schedule A (Form 1040), or Schedule A (Form 1040-NR). However, see Schedule 1 (Form 1040) , later.

As described earlier in Unreimbursed Employee Expenses , there are four categories of employees who can claim deductions for unreimbursed employee expenses.

Employees in the following categories can claim their unreimbursed employee expenses.

If you have deductible employee business expenses, you must usually file Form 2106.

You must file Form 2106 if any of the following applies to you.

You are a qualified performing artist claiming performing-artist-related expenses.

You are a fee-basis state or local government official claiming expenses in performing that job.

You are an individual with a disability and are claiming impairment-related work expenses. See Employees with impairment-related work expenses , later.

You have travel expenses as a member of the Armed Forces reserves that you can deduct as an adjustment to gross income.

You are claiming job-related vehicle, travel, transportation, or non-entertainment meal expenses. See the Instructions for Form 2106 for more information.

Use Form 4562, to claim the depreciation deduction for a computer you placed in service after 2018. Complete Form 4562, if you are claiming a section 179 deduction.

Don't use Form 4562 to claim the depreciation deduction for a computer you placed in service before 2019 and used only in your home office, unless you are otherwise required to file Form 4562. Instead, report the depreciation directly on the appropriate form.

Most of the categories of employees who are able to claim deductions for unreimbursed employees report these deductions as an adjustment to income on Schedule 1 (Form 1040), discussed next. However, employees with impairment-related work expenses on Form 2106 report these expenses on Schedule A (Form 1040).

Enter impairment-related work expenses on Form 2106. Enter on your Schedule A (Form 1040); or your Schedule A (Form 1040-NR), that part of the amount on Form 2106, that is related to your impairment. Those employment-related expenses not related to your impairment are a miscellaneous itemized deduction and are no longer deductible.

If you are self-employed, enter your impairment-related work expenses on the appropriate Form (Schedule C, E, or F) used to report your business income and expenses.

You are blind. You must use a reader to do your work. You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. The reader's services are only for your work. You can deduct your expenses for the reader as impairment-related work expenses.

Schedule 1 (Form 1040)

Most deductible employee business expenses on Form 2106 are reported as an adjustment to income on your Schedule 1 (Form 1040). However, certain other expenses are deducted on Schedule A (Form 1040).

Certain qualified expenses of eligible educators can be deducted on your Schedule 1 (Form 1040).

You can deduct certain attorney fees and court costs for unlawful discrimination claims, described earlier, on your Schedule 1 (Form 1040).

Debra Smith is an army reservist stationed 110 miles from her home. She makes this trip once each month. In addition to her travel expenses, she pays for her own uniforms and for the cost of cleaning those uniforms.

In addition to her employee business expenses as an army reservist, she has gambling losses from her trips to the casino and race track. She has gambling winnings of $5,400 and gambling losses of $5,700.

Debra completes Form 2106. She enters her transportation expenses of $500 as a reservist and she enters the amount of her expenses for the purchase of uniforms and their cleaning, $250. She then completes the form, entering the $750 as her total expenses. Only the transportation expenses for travel as a reservist are deductible as an adjustment on her Schedule 1 (Form 1040). The $250 is a miscellaneous itemized deduction and is not deductible.

Debra claims her gambling losses that don’t exceed her gambling winnings as an itemized deduction. Debra enters her allowable loss ($5,400) on her Schedule A (Form 1040).

How To Get Tax Help

If you have questions about a tax issue, need help preparing your tax return, or want to download free publications, forms, or instructions, go to IRS.gov and find resources that can help you right away.

After receiving all your wage and earnings statements (Form W-2, W-2G, 1099-R, 1099-MISC, 1099-NEC, etc.); unemployment compensation statements (by mail or in a digital format) or other government payment statements (Form 1099-G); and interest, dividend, and retirement statements from banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you qualify for free tax preparation, or hire a tax professional to prepare your return.

Go to IRS.gov to see your options for preparing and filing your return online or in your local community, if you qualify, which include the following.

Free File. This program lets you prepare and file your federal individual income tax return for free using brand-name tax-preparation-and-filing software or Free File fillable forms. However, state tax preparation may not be available through Free File. Go to IRS.gov/FreeFile to see if you qualify for free online federal tax preparation, e-filing, and direct deposit or payment options.

VITA. The Volunteer Income Tax Assistance (VITA) program offers free tax help to people with low-to-moderate incomes, persons with disabilities, and limited-English-speaking taxpayers who need help preparing their own tax returns. Go to IRS.gov/VITA , download the free IRS2Go app, or call 800-906-9887 for information on free tax return preparation.

TCE. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors. Go to IRS.gov/TCE , download the free IRS2Go app, or call 888-227-7669 for information on free tax return preparation.

MilTax. Members of the U.S. Armed Forces and qualified veterans may use MilTax, a free tax service offered by the Department of Defense through Military OneSource.

Also, the IRS offers Free Fillable Forms, which can be completed online and then filed electronically regardless of income.

Go to IRS.gov/Tools for the following.

The Earned Income Tax Credit Assistant ( IRS.gov/EITCAssistant ) determines if you’re eligible for the earned income credit (EIC).

The Online EIN Application ( IRS.gov/EIN ) helps you get an employer identification number (EIN).

The Tax Withholding Estimator ( IRS.gov/W4app ) makes it easier for everyone to pay the correct amount of tax during the year. The tool is a convenient, online way to check and tailor your withholding. It’s more user-friendly for taxpayers, including retirees and self-employed individuals. The features include the following.

Easy to understand language.

The ability to switch between screens, correct previous entries, and skip screens that don’t apply.

Tips and links to help you determine if you qualify for tax credits and deductions.

A progress tracker.

A self-employment tax feature.

Automatic calculation of taxable social security benefits.

The First Time Homebuyer Credit Account Look-up ( IRS.gov/HomeBuyer ) tool provides information on your repayments and account balance.

The Sales Tax Deduction Calculator ( IRS.gov/SalesTax ) figures the amount you can claim if you itemize deductions on Schedule A (Form 1040).

IRS.gov/Help : A variety of tools to help you get answers to some of the most common tax questions.

IRS.gov/ITA : The Interactive Tax Assistant, a tool that will ask you questions on a number of tax law topics and provide answers.

IRS.gov/Forms : Find forms, instructions, and publications. You will find details on 2020 tax changes and hundreds of interactive links to help you find answers to your questions.

You may also be able to access tax law information in your electronic filing software.

There are various types of tax return preparers, including tax preparers, enrolled agents, certified public accountants (CPAs), attorneys, and many others who don’t have professional credentials. If you choose to have someone prepare your tax return, choose that preparer wisely. A paid tax preparer is:

Primarily responsible for the overall substantive accuracy of your return,

Required to sign the return, and

Required to include their preparer tax identification number (PTIN).

Although the tax preparer always signs the return, you're ultimately responsible for providing all the information required for the preparer to accurately prepare your return. Anyone paid to prepare tax returns for others should have a thorough understanding of tax matters. For more information on how to choose a tax preparer, go to Tips for Choosing a Tax Preparer on IRS.gov.

Go to IRS.gov/Coronavirus for links to information on the impact of the coronavirus, as well as tax relief available for individuals and families, small and large businesses, and tax-exempt organizations.

Tax reform legislation affects individuals, businesses, and tax-exempt and government entities. Go to IRS.gov/TaxReform for information and updates on how this legislation affects your taxes.

The Social Security Administration (SSA) offers online service at SSA.gov/employer for fast, free, and secure online W-2 filing options to CPAs, accountants, enrolled agents, and individuals who process Form W-2, Wage and Tax Statement, and Form W-2c, Corrected Wage and Tax Statement.

Go to IRS.gov/SocialMedia to see the various social media tools the IRS uses to share the latest information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are paramount. We use these tools to share public information with you. Don’t post your SSN or other confidential information on social media sites. Always protect your identity when using any social networking site.

The following IRS YouTube channels provide short, informative videos on various tax-related topics in English, Spanish, and ASL.

Youtube.com/irsvideos .

Youtube.com/irsvideosmultilingua .

Youtube.com/irsvideosASL .

The IRS Video portal ( IRSVideos.gov ) contains video and audio presentations for individuals, small businesses, and tax professionals.

You can find information on IRS.gov/MyLanguage if English isn’t your native language.

Multilingual assistance, provided by the IRS, is available at Taxpayer Assistance Centers (TACs) and other IRS offices. Over-the-phone interpreter service is accessible in more than 350 languages.

Go to IRS.gov/Forms to view, download, or print all of the forms, instructions, and publications you may need. You can also download and view popular tax publications and instructions (including the Instructions for Forms 1040 and 1040-SR) on mobile devices as an eBook at IRS.gov/eBooks . Or you can go to IRS.gov/OrderForms to place an order.

Go to IRS.gov/Account to securely access information about your federal tax account.

View the amount you owe, pay online, or set up an online payment agreement.

Access your tax records online.

Review your payment history.

Go to IRS.gov/SecureAccess to review the required identity authentication process.

The fastest way to receive a tax refund is to file electronically and choose direct deposit, which securely and electronically transfers your refund directly into your financial account. Direct deposit also avoids the possibility that your check could be lost, stolen, or returned undeliverable to the IRS. Eight in 10 taxpayers use direct deposit to receive their refunds. The IRS issues more than 90% of refunds in less than 21 days.

The quickest way to get a copy of your tax transcript is to go to IRS.gov/Transcripts . Click on either “Get Transcript Online” or “Get Transcript by Mail” to order a free copy of your transcript. If you prefer, you can order your transcript by calling 800-908-9946.

Tax-related identity theft happens when someone steals your personal information to commit tax fraud. Your taxes can be affected if your SSN is used to file a fraudulent return or to claim a refund or credit.

The IRS doesn’t initiate contact with taxpayers by email, text messages, telephone calls, or social media channels to request personal or financial information. This includes requests for personal identification numbers (PINs), passwords, or similar information for credit cards, banks, or other financial accounts.

Go to IRS.gov/IdentityTheft , the IRS Identity Theft Central webpage, for information on identity theft and data security protection for taxpayers, tax professionals, and businesses. If your SSN has been lost or stolen or you suspect you’re a victim of tax-related identity theft, you can learn what steps you should take.

Get an Identity Protection PIN (IP PIN). IP PINs are six-digit numbers assigned to eligible taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return with your SSN. To learn more, go to IRS.gov/IPPIN .

Go to IRS.gov/Refunds .

The IRS can’t issue refunds before mid-February 2021 for returns that claimed the EIC or the additional child tax credit (ACTC). This applies to the entire refund, not just the portion associated with these credits.

Download the official IRS2Go app to your mobile device to check your refund status.

Call the automated refund hotline at 800-829-1954.

The IRS uses the latest encryption technology to ensure your electronic payments are safe and secure. You can make electronic payments online, by phone, and from a mobile device using the IRS2Go app. Paying electronically is quick, easy, and faster than mailing in a check or money order. Go to IRS.gov/Payments for information on how to make a payment using any of the following options.

IRS Direct Pay : Pay your individual tax bill or estimated tax payment directly from your checking or savings account at no cost to you.

Debit or Credit Card : Choose an approved payment processor to pay online, by phone, or by mobile device.

Electronic Funds Withdrawal : Offered only when filing your federal taxes using tax return preparation software or through a tax professional.

Electronic Federal Tax Payment System : Best option for businesses. Enrollment is required.

Check or Money Order : Mail your payment to the address listed on the notice or instructions.

Cash : You may be able to pay your taxes with cash at a participating retail store.

Same-Day Wire : You may be able to do same-day wire from your financial institution. Contact your financial institution for availability, cost, and cut-off times.

Go to IRS.gov/Payments for more information about your options.

Apply for an online payment agreement ( IRS.gov/OPA ) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once you complete the online process, you will receive immediate notification of whether your agreement has been approved.

Use the Offer in Compromise Pre-Qualifier to see if you can settle your tax debt for less than the full amount you owe. For more information on the Offer in Compromise program, go to IRS.gov/OIC .

You can now file Form 1040-X electronically with tax filing software to amend 2019 Forms 1040 and 1040-SR. To do so, you must have e-filed your original 2019 return. Amended returns for all prior years must be mailed. See Tips for taxpayers who need to file an amended tax return and go to IRS.gov/Form1040X for information and updates.

Go to IRS.gov/WMAR to track the status of Form 1040-X amended returns. Please note that it can take up to 3 weeks from the date you filed your amended return for it to show up in our system, and processing it can take up to 16 weeks.

Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter.

Keep in mind, many questions can be answered on IRS.gov without visiting an IRS Taxpayer Assistance Center (TAC). Go to IRS.gov/LetUsHelp for the topics people ask about most. If you still need help, IRS TACs provide tax help when a tax issue can’t be handled online or by phone. All TACs now provide service by appointment, so you’ll know in advance that you can get the service you need without long wait times. Before you visit, go to IRS.gov/TACLocator to find the nearest TAC and to check hours, available services, and appointment options. Or, on the IRS2Go app, under the Stay Connected tab, choose the Contact Us option and click on “Local Offices.”

The Taxpayer Advocate Service (TAS) Is Here To Help You

TAS is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Their job is to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights .

The Taxpayer Bill of Rights describes 10 basic rights that all taxpayers have when dealing with the IRS. Go to TaxpayerAdvocate.IRS.gov to help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them.

TAS can help you resolve problems that you can’t resolve with the IRS. And their service is free. If you qualify for their assistance, you will be assigned to one advocate who will work with you throughout the process and will do everything possible to resolve your issue. TAS can help you if:

Your problem is causing financial difficulty for you, your family, or your business;

You face (or your business is facing) an immediate threat of adverse action; or

You’ve tried repeatedly to contact the IRS but no one has responded, or the IRS hasn’t responded by the date promised.

TAS has offices in every state, the District of Columbia, and Puerto Rico . Your local advocate’s number is in your local directory and at TaxpayerAdvocate.IRS.gov/Contact-Us . You can also call them at 877-777-4778.

TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, please report it to them at IRS.gov/SAMS .

TAS can provide a variety of information for tax professionals, including tax law updates and guidance, TAS programs, and ways to let TAS know about systemic problems you’ve seen in your practice.

LITCs are independent from the IRS. LITCs represent individuals whose income is below a certain level and need to resolve tax problems with the IRS, such as audits, appeals, and tax collection disputes. In addition, clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Services are offered for free or a small fee for eligible taxpayers. To find a clinic near you, visit TaxpayerAdvocate.IRS.gov/about/LITC or see IRS Pub. 4134, Low Income Taxpayer Clinic List .

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COMMENTS

  1. PDF 10.60 Miscellaneous Travel Expenses

    As part of their system for management and control of travel related costs (refer to Subsection 10.10.10), agencies are required to define the circumstances under which charges assessed by airlines on international flights are reimbursable as miscellaneous travel expenses (examples include baggage fees or seat assignment fees). 10.60.50.

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  3. 14 Fam 560 Allowable Travel and Miscellaneous Expenses

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    Step 1: Determine Your Trip Meets the Requirements of a Business Trip. A business trip for tax purposes is one that meets the following criteria: There must be a business purposes for the travel. You are required to be away from your tax home. The trip lasts overnight or a period long enough to require rest. The trip is temporary.

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    use this guide to appropriately expense Miscellaneous Travel Expenses or Miscellaneous Administrative Fees. Accessing Concur 1. Go to Travel.ou.edu and login with your HSC credentials. 2. Click Expense from the main menu and either select + Create New Report or access an open report by clicking on the report name. Travel Card Charges 3. To ...

  6. Travel Expenses Definition and Tax Deductible Categories

    Travel expenses are costs associated with traveling for the purpose of conducting business-related activities. Travel expenses can generally be deducted by employees as non-reimbursed travel ...

  7. Publication 463 (2023), Travel, Gift, and Car Expenses

    You will find examples of deductible travel expenses in Table 1-1. ... will no longer be allowed to be claimed as an unreimbursed employee travel expense as a miscellaneous itemized deduction due to the suspension of miscellaneous itemized deductions that are subject to the 2% floor under section 67(a). The suspension applies to tax years ...

  8. Topic no. 511, Business travel expenses

    Topic no. 511, Business travel expenses. Travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job. You can't deduct expenses that are lavish or extravagant, or that are for personal purposes. You're traveling away from home if your duties require you to be away from the general ...

  9. Miscellaneous Travel Expenses

    Procedures. Reimbursable expenses while on official travel status include, but are not limited to, the following: Business office expenses (copy services, postage, supplies < $500) Business related phone calls, faxes, and internet usage charges and fees. Transportation costs from lodging or businesses to restaurants.

  10. Travel & Expense

    Miscellaneous travel expenses are defined as those costs not considered primary means of transportation, lodging related or included under the University's meal and incidental per diem allowance. Where miscellaneous transportation is expected to be the primary transportation, comparison of cost must be made to the most reasonable form of ...

  11. Everything you need to know about travel expenses

    Miscellaneous Travel Expenses. There are also a few other miscellaneous travel expenses that you may incur while on a business trip. These can include things like laundry, tips, business-related communication, and shipping and handling of luggage or work-related materials. ... Here are examples of travel expenses you CAN NOT deduct.

  12. What Is and Isn't Considered a Travel Expense?

    You also can't deduct travel expenses that are superfluous or excessive, such as luxury purchases. If your family travels with you on a work trip, their expenses don't count as your travel expenses. When you have business-related expenses in your home city, they may or may be deductible. However, they aren't considered travel expenses.

  13. Travel and Expense Policy: What Is It, Example Template, and Best

    This can include travel costs like airfare, hotel, and other miscellaneous expenses like meals and incidentals. Many companies have a travel and expense policy outlining the rules and procedures for submitting these reports. In this blog post, we will discuss what a travel and expense policy is, provide an example template, and outline some ...

  14. 18 Examples of Travel Expenses

    18 Examples of Travel Expenses John Spacey, June 18, 2020. Travel expenses are business expenses related to business travel. These must be viewed as ordinary and necessary to be deducted for the purposes of taxation and financial reporting. This includes a notion of scale. For example, a large business may deduct private jets and luxurious ...

  15. Understand Miscellaneous Expenses and Properly Record them

    Miscellaneous Expenses are Not Travel Expenses . Miscellaneous expenses are often confused with travel expenses, but this is a misconception. These two kinds of expenses are based on different ideas that need to be well understood for proper accounting to be done. ... Scenario #5 - Examples of Miscellaneous Expenses. A company needs to make a ...

  16. Chapter 04

    Miscellaneous Travel Expenses - Miscellaneous travel expenses are those expenses identified in FTR PART 301-12 ... For example, a traveler returns from a training conference with additional training materials received at the training. Fees, if any, charged by the common carrier for excess weight of accompanied baggage (FTR § 301-12.2(a)). ...

  17. Miscellaneous Expense Allowance (MEA)

    Miscellaneous Expense Allowance (MEA) Miscellaneous expenses are the various costs associated with PCS that are not covered by other PCS allowances in the JTR. A MEA is payable when a civilian employee vacates a residence at the old Permanent Duty Station (PDS) and establishes a new temporary or permanent residence at the new PDS.

  18. What is Miscellaneous Expenses? Examples And List

    Miscellaneous Expenses Examples. Miscellaneous expenses depend on individual situations. Following are some scenarios to get a better understanding of miscellaneous charges: Scenario 1: Suppose XYZ company is a shoe manufacturer. The company bears different types of expenses, such as rent, raw materials, advertising, etc., that are regular ...

  19. PDF Travel and Expense Policy: What Is It, Example Template, and Best Practices

    This can include travel costs like airfare, hotel, and other miscellaneous expenses like meals and incidentals. Many companies have a travel and expense policy outlining the rules and procedures for submitting these reports. In this blog post, we will discuss what a travel and expense policy is, provide an example template, and outline some ...

  20. What are miscellaneous expenses?

    Miscellaneous expense is a term used to define and refer to costs that typically do not fit within specific tax categories or account ledgers. Regular, extensive, and ongoing expenses, such as payroll, office rent, and inventory supplies, all have their own account to track, and each expense records its associated costs every month ...

  21. Non-Reimbursable Examples

    Common examples. Missed/changed/cancelled flight expense due to negligent travel planning. Fines for parking tickets, citations or infractions received while operating a vehicle while on UW business (note that policy on this is very strict and is not open to reimbursement on any form of discretionary funding as it is blocked by state legislature)

  22. 6 Common Miscellaneous Expenses Examples

    Miscellaneous expense examples include clothes, a computer, equipment, a work uniform and work boots, with some exceptions. Miscellaneous expenses are defined by the IRS as any write off that doesn't fit into one of their tax categories. Small business owners can claim these expenses to reduce their taxable income.. Miscellaneous expenses must be itemized in your taxes; you can't take the ...

  23. Publication 529 (12/2020), Miscellaneous Deductions

    Miscellaneous itemized deductions are those deductions that would have been subject to the 2%-of-adjusted-gross-income (AGI) limitation. You can still claim certain expenses as itemized deductions on Schedule A (Form 1040), Schedule A (1040-NR), or as an adjustment to income on Form 1040 or 1040-SR.