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.

RELATED TERMS
  1. Transportation Expenses

    An expense incurred by an employee or self-employed taxpayer ...
  2. Tax Home

    The general locality of an individual's primary place of work. ...
  3. Travel Insurance

    An insurance product designed to cover the costs and reduce the ...
  4. Traveler's Check

    A medium of exchange that can be used in place of hard currency. ...
  5. Smart Traveler Enrollment Program

    A service of the U.S. Department of State that lets U.S. citizens ...
  6. Staycation

    A vacation spent at or near your own home, rather than traveling ...
Related Articles
  1. Personal Finance

    Consumer Spending on Travel Has Likely Peaked (PCLN, EXPE)

    While consumer spending on travel recovered quickly following the recession, it has been outpacing wage and GDP growth, and has thus likely maxed-out.
  2. Retirement

    Retirement Travel: Good And Good For You

    Research shows a big disconnect between how many Americans dream of travel during retirement and who saves enough to fund those trips. Don't miss out!
  3. Insights

    How Brexit Will Affect Travel to Europe

    The Brexit vote is likely to cause travel to London to get much less expensive in the near term.
  4. Personal Finance

    7 Ways To Save Money On Business Travel

    Business travel is soaring, especially in America. But though business travel is great for the economy, it's not so kind to the traveler's bank account.
  5. Personal Finance

    How Safe Is Traveling in Europe?

    Here, some factors to consider as you make your travel plans this year.
  6. Insurance

    The Basics Of Travel Insurance

    Before going on your trip, find out what kind of insurance coverage you will need.
  7. Retirement

    Want to Travel the World in Retirement? Here's How

    Dreaming of a retirement spent traveling the world? Here's how to start turning that dream into reality.
  8. Managing Wealth

    How to Use Technology to Save Big on Travel

    How to leverage the online community and technology to create a one of a kind travel experience that's economical.
  9. Financial Advisor

    Is Travel Insurance a Good Idea?

    Is travel insurance a good idea for your next vacation? This is a look at what policies may or may not cover and when it makes sense to purchase coverage.
  10. Personal Finance

    How Safe is Traveling in the Middle East?

    Unrest in the Middle East dominates the news, but many parts of the region are safe for vacation and business travelers. A prudent traveler's guide.
RELATED FAQS
  1. What are the most common business deductions and expenses for small businesses?

    Learn about some of the most common business tax deductions available to small businesses that can reduce net business expenses. Read Answer >>
  2. What are the warning signs of online hotel / travel booking scams?

    Learn more about travel booking scams and how to avoid them. Explore warning signs of possible booking scams, and find out ... Read Answer >>
  3. What emerging markets are best suited for investing in the aerospace sector?

    Discover the best emerging markets suited for investing in the aerospace sector and how middle class growth best positions ... Read Answer >>
  4. How often do financial advisors have to travel?

    Learn how maximizing the value of travel can be tough for new financial advisors. If you are just starting out in the business, ... Read Answer >>
  5. What are some commonly missed deductions for business owners?

    If you own a business, you are eligible to deduct certain business-related expenses. These include deductions for the following: ... Read Answer >>
  6. How can I tell which of my business expenses count as write-offs?

    Learn the basic concept behind what business expenses can be written off, along with specific examples of some basic and ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center