If you’re planning a business trip this summer—whether it’s to meet clients, attend a seminar, or check on operations in another city—some of your travel expenses may be tax deductible. Understanding which costs qualify can help you save money and stay compliant with IRS rules.
Who can deduct travel expenses?
If you’re self-employed or run a business, you can deduct travel expenses when:
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The trip is directly related to your business, and
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It requires you (or your employee) to be away from home overnight within the U.S.
Employees, however, cannot deduct unreimbursed travel expenses on their personal tax returns through at least 2025. That’s because these costs fall under “miscellaneous itemized deductions,” which are currently suspended under the Tax Cuts and Jobs Act. Proposed legislation could eliminate them permanently, but no final decision has been made.
What kinds of expenses qualify?
You can generally deduct the following travel-related costs:
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Airfare, train tickets, or other transportation to and from your business destination
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Lodging
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Meals (subject to a 50% deduction limit)
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Transportation within the destination (e.g., taxis, ride-shares, public transit)
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Business-related expenses like Wi-Fi, dry cleaning, phone calls, and equipment rentals
These expenses must be reasonable. Lavish or extravagant costs may be denied by the IRS, even if they’re technically business-related. That said, you’re not required to stick to budget hotels or inexpensive meals—as long as the costs make sense given the circumstances.
Personal expenses—such as sightseeing, entertainment, or pet boarding—are not deductible.
Combining business with personal travel
If you’re mixing business with a little downtime, you’ll need to split your expenses accordingly. Here’s how the IRS generally evaluates mixed-purpose trips:
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Meals and lodging: Only deductible for the days you’re actively conducting business.
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Travel costs (like airfare): Fully deductible if the primary reason for the trip is business. If the trip is mostly personal, travel costs are not deductible.
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Time allocation: The IRS may examine how your time was spent during the trip to determine its primary purpose, especially in the event of an audit.
Note: The rules are stricter for international travel. Your Padgett advisor can help you properly document your travel and help ensure you’re applying the right deductions.
Special circumstances
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Seminars and conferences: Be prepared to prove the event was directly tied to your work. Keep documentation such as registration emails, agendas, and travel plans.
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Bringing your spouse: You generally cannot deduct your spouse’s travel expenses unless they are a bona fide employee of your business and have a legitimate business reason to attend. A Padgett advisor can walk you through situations like these and help you avoid common pitfalls.
How to protect your deductions
Keep detailed records to support your travel deductions:
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Save all receipts
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Note dates, locations, and business purposes
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Document who you met with and what was discussed (for meal deductions)
This paperwork will be essential if your return is ever audited. Working with Padgett makes it easier to keep audit-ready records all year long.
Need help sorting it out?
Tax rules around business travel can be complex and conditional —especially when business and personal travel overlap. If you’re planning a trip and want to make sure you’re following IRS guidelines, we can help! We’ll clarify what you can deduct and help you keep clean, audit-ready records.
Reach out to your local Padgett office to get started.