Travel Receipts You Need to Keep
Common Tax Deductions for Business Travelers
Business Travelers can save a lot of dough just by keeping those itty-bitty slips of paper thrust at them all day.
Travel deductions really add up when calculating taxes - and all businesses need to watch the bottom line. Even businesses who are well-off can stay that way by paying attention to the "minor" details of deducting toll fares and parking fees. Whether the business is yours, or you travel on someone else's expense account, you are responsible for keeping all travel receipts.
Vehicle Related Receipts to Keep for Tax Deductions:
- Driving Costs - gasoline (or mileage), tolls, ferries, bus tickets, train stubs, subway slips, plane passes, taxi rides.
- Parking Fees - money you put in the meter or fees you pay at the lot. If the meter doesn't spit out receipts, make your own note of it with date, fee and where you parked.
- Vehicle Upkeep on personal or business cars - included items: oil changes, air filters, tuneups, tire service, car washing, repairs, license fees, garage rental and lease payments.
- Rental Car Fees. There can be many.
- Insurance Fees if you use your own car. A portion of this is deductible.
Travel Receipts in the City and at the Hotel:
- Tips. Baggage porters, taxi drivers, waiters, the concierge, hotel maid, shuttle driver, room service drivers, wine stewards and doormen. Everybody has their hand out and these fees are deductible too. Make a note of who you tipped and log it all in your travel journal.
- Eating Out. A portion of your meals - all of them, and including snacks from the convenience store, are all deductible. Don't forget to log the tips! If you don't wish to log all your meals, you can use the IRS standard meal allowances.
- Lodging. make sure your receipts indicate where you stayed and for how long. Include fees for telephone use, laundry and cleaning services and parking, if there was a charge for that too.
- Business Gifts. You can deduct up to $25 per person in the US for legit business gifts. This does not cover presents for the wife and kids!
- Mailing Expenses, Keeping in Touch. Faxing and copies from Kinkos, parcel shipping and stamps from the US Post Office, Fed Ex services, fees for using Wireless hot spots (such as the fees at Starbucks).
Always consult a tax specialist on any tax matters and business travel deductions. Tax laws change yearly, and are complex enough to employ whole armies of tax professionals. Remember that ignorance is no excuse under the law when it comes to tax fraud, so do your own research and consult proper professionals. Also bookmark the IRS Guide to Business Expenses.
