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What Are Travel Expenses?

Travel expenses refer to the costs that an individual has to pay for when he travels for a work-related purpose. What makes travel expenses interesting is the fact that they can be tax deductible. Whether or not travel expenses can be deducted from taxable income and how much can be exempt depends on your location.

There are a variety of things that can fall under travel expenses. What classifies as a travel expense also depends on your location. Often though, expenses such as transportation costs, accommodations, food, and phone calls are counted as travel expenses. Transportation costs can cover gas - if you drive your own car, car rental fees, airfare, and bus fare. Other costs such as tips and laundry may also be covered.

In the United States, there is a very important consideration that you must know about. The law makes a distinction between business trips and traveling to a location far from his residence on a regular basis. The former refers to trips that are made occasionally for business purposes. The latter refers to a person who works at a site on a regular basis, but lives far from the site. This means that though his regular place of work is far from home, he cannot claim travel expenses.

More so, travel expenses can only be declared as non-taxable income if the employee does receive the compensation for the travel expense as reported income. For example, if the employee has a company credit card at his disposal and he uses the card for his travel expenses, he cannot declare those expenses as tax exempt.
The bottom line is that you know the law clearly so that you can make them most of this benefit.

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