H&R Block Tax Tip: Business Travel Tax Breaks

It’s summer, and the beaches and mountains are calling, but a mere 3 percent of household expenditures is on travel. To make the most of this money, an estimated 2 in 3 business travelers add vacation days to at least one business trip every year. But, how does that impact taxpayers wanting to claim business travel expenses as tax deductions?

The primary reason for the trip must be business-related; doing some work while on vacation isn’t the same thing. Bringing a companion on a business trip won’t make you ineligible if the expenses you seek to deduct would have been incurred had the trip remained strictly business. But, to whom does this apply?

Small business owners and employees not reimbursed for business travel expenses may be eligible to deduct some ordinary and necessary expenses. Among these expenses are transportation, shipping, lodging, meals and entertainment. Eligible employees may claim these expenses as miscellaneous itemized deductions, which are tax-deductible when they exceed 2 percent of adjusted gross income.

Have questions about this or another tax topic? The Tax Institute at H&R Block is available year-round to provide plain-language insights on tax laws and how they impact real people. As the go-to source for objective analysis of federal and state laws, The Tax Institute’s staff includes CPAs, enrolled agents, attorneys and even former IRS agents. To talk with a tax expert from The Tax Institute, contact the H&R Block Media Desk at 816-854-4287 or mediadesk@hrblock.com.