What Counts as a Travel Expense?

Posted by Armen G. Derderian C.P.A on September 21, 2018

There is a good chance in your life that you’ve heard people discuss travel expenses. Travel expenses can mean a lot of things depending on the context. For example, a family vacation from Massachusetts to Florida requires paying for your flight. However, most often travel expenses refers to business travel and tax write-offs. Only certain kinds of travel fall into this category. If you own your own business or do a lot of traveling for your job, chances are you can write that travel off on your taxes. Talk to your local CPA in MA to fully understand what kind of travel expenses affect you. For now, here are a few examples of travel expenses.

Transportation

Transportation is the most obvious of the travel expenses, and it covers a lot of different circumstances. One thing to remember is that transportation is only tax exempt if you’re going to a particular destination as part of your job that is not your typical place of business. For instance, travel by plane, bus, train, or car all count as travel expenses. Other forms of transportation that qualify as taxi fare and other forms of transportation between the hotel you’re staying in and the airport or restaurants.

Luggage

When it comes to travel, your luggage and baggage are included as an expense. While most trains and planes offer a certain amount of free bags, sometimes you’re business requires extra materials. These materials can consist of merchandise or presentation materials. Any luggage overage fees can be written off. For this, you’ll have to keep any receipts or invoices of your payment.

Miscellaneous

There are so many different types of travel expenses that they can’t all fit into general categories. Other forms of travel expenses include meals and room service, dry cleaning of suits and work clothes, hotel fees, tips, and usage of fax machines for business purposes. Of course, there are more, so be sure to keep your receipts. Your local CPA in MA can better help you understand what counts as a travel expense.

 

Travel expenses can make a huge difference in your tax return. Sometimes it may be the difference between a tax return and a tax payment. This is why it’s important to know what kind of travel expenses may apply to you and which receipts you need to keep. For any questions, contact your local CPA in MA. Armen Derderian is available for contact at 978-794-9200, or you can visit him online!