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You don’t have to fly first class or stay in a nice hotel to be writing off travel expenses. Going to a conference, visiting a worksite, even enjoying a change of scenery — all of these can (sometimes) count.
In this video, we’ll go over everything you need to know about the business travel deduction. You can write off business expenses every time you travel away from what the IRS calls your “tax home” — as long as your trip is mostly business and an “ordinary and necessary expense”. The IRS uses these everyday words in super-specific ways that can be confusing. Don’t worry — we’ll get into exactly what they mean here.
We’ll also take a deep dive into the IRS’s rules for business travel. The main requirements for your trip are that 1) it takes you at least 100 miles from home, 2) you work regular hours during it, and 3) it lasts less than a year.
Next, we’ll talk about all the travel expenses you can write off, including lodging and meals while traveling. Don’t forget about little-known costs like baggage fees, airplane Wi-Fi, shipping expenses, and even (sometimes) dry cleaning!
IMPORTANT INFO FOR 2022: Any meals you get at restaurants while on a business trip are temporarily 100% deductible, thanks to the Consolidated Appropriations Act of 2021. Before, business meal deductions were capped at 50%, and they'll go back to that in 2023.
We'll end by going over what the business travel deduction looks like in the age of remote-first work. Digital nomads, this one’s for you!
TIMESTAMPS
00:00 - Intro 01:43 - What’s your tax home? 02:28 - Restrictions on travel deductions 04:33 - Rules for business travel 06:29 - What travel expenses can I deduct? 10:20 - What about digital nomads?
Here at the Keeper channel, we create resources to help you save on your taxes. Subscribe to watch us break down your tax bill, dig into write-offs, debunk tax myths, and more.
