Business owners and self-employed individuals report travel expenses on Schedule C (Form 1040).
If you're an employee, travel expense deductions were eliminated for most workers under the Tax Cuts and Jobs Act (2018-2025).
The trip must be primarily for business purposes. The expenses must be ordinary and necessary for your profession.
Keep all receipts and documentation for:
- Transportation
- Lodging
- Meals
- Incidental costs (parking, baggage fees, tips)
- Conference registration fees
Transportation expenses include airfare, train tickets, rental car costs, mileage for personal vehicle use at the standard IRS rate, taxis, rideshares, and airport parking.
Lodging expenses cover hotel rooms and short-term rentals used for business purposes. Meal expenses are 50% deductible while on business travel.
When completing your tax return, you'll report your business travel expenses on Line 24a of Schedule C. Include your meals on Line 24b and remember the 50% limitation that typically applies to meal expenses.
The IRS may require you to attach a detailed record of your expenses if they exceed certain thresholds, so keep your documentation organized and readily available.
I recommend using a dedicated credit card for business expenses. This creates an automatic record of your spending. Many travel concierge services can help organize your receipts and track expenses.
If you need help planning efficient business travel that maximizes deductions, consider working with professionals who know how travel agents work to optimize business trips.
For international business travel, the trip must be predominantly for business to qualify for deductions. Document the business purpose of each day abroad.
