Understanding Business Travel Deductions

From IRS Tax Tip 2023-15, February 7, 2023

The following information is available on a section of the IRS’ website called Current Tax Tips at: https://www.irs.gov/newsroom/irs-tax-tips.


Whether someone travels for work once a year or once a month, figuring out travel expense tax write-offs might seem confusing. The IRS has information to help all business travelers properly claim these valuable deductions.

Here are some tax details all business travelers should know

Business travel deductions are available when employees must travel away from their tax home or main place of work for business reasons. A taxpayer is traveling away from home if they are away for longer than an ordinary day’s work and they need to sleep to meet the demands of their work while away.

Travel expenses must be ordinary and necessary. They can’t be lavish, extravagant or for personal purposes.

Employers can deduct travel expenses paid or incurred during a temporary work assignment if the assignment length does not exceed one year.

Travel expenses for conventions are deductible if attendance benefits the business. There are special rules for conventions held outside North America.

Deductible travel expenses include:

  • Travel by airplane, train, bus or car between your home and your business destination.
  • Fares for taxis or other types of transportation between an airport or train station and a hotel, or from a hotel to a work location.
  • Shipping of baggage and sample or display material between regular and temporary work locations.
  • Using a personally owned car for business.
  • Lodging and meal.
  • Dry cleaning and laundry.
  • Business calls and communication.
  • Tips paid for services related to any of these expenses.
  • Other similar ordinary and necessary expenses related to the business travel.

Self-employed individuals or farmers with travel deductions

Travel deductions for the National Guard or military reserves

National Guard or military reserve service members can claim a deduction for unreimbursed travel expenses paid during the performance of their duty.


Well-organized records make it easier to prepare a tax return. Keep records such as receipts, canceled checks and other documents that support a deduction.


March 15TH Deadline For S-Corporations And Partnerships To File And Fund, Or Extend

Just a reminder that the deadline to file your S-Corporation and Partnership tax returns is March 15th. If those tax returns won’t be completed by then, make sure to file an extension by March 15th.

Not filing a tax return or extension for your S-Corp or Partnership by March 15th gets very expensive very quickly. The IRS currently charges a penalty of $220 per shareholder or partner per month that the return is late.

And if you need more time to fund your 2022 retirement plan, make sure to file for an extension by 3/15. That will give you six extra months until September 15th to fund the retirement plan for your practice for 2022. Do NOT file your practice tax return by 3/15/23 if you want to give yourself more time to finalize your 2022 retirement plan contributions. Instead, submit only the extension request with the IRS at this time even if you can file your business return.

More info about filing extensions is available from the IRS at: Extension of Time To File Your Tax Return | Internal Revenue Service (irs.gov)