Travel Expenses

What are 'Travel Expenses'

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 expenses that are incurred while traveling away from home specifically for business purposes, such as for a conference or meeting. While many travel expenses can be deducted, those that are lavish or extravagant in nature, or those that are for personal purposes, are excluded. The Internal Revenue Service (IRS) considers employees to be traveling away from home if their business obligations require them to be away from their "tax home" (the general area where the their main place of business is located) for a period longer than a typical work day.

BREAKING DOWN 'Travel Expenses'

The Internal Revenue Service (IRS) considers employees to be traveling away from home if their business obligations require them to be away from their "tax home" (the general area where their main place of business is located) for a period longer than a typical work day. Well-organized records, including receipts, canceled checks and other documents that support a deduction can help individuals prepare tax returns and answer questions from the IRS.

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