More and more people have to travel for their jobs and many people do not realize that it is possible to deduct their travel expenses when they go to file their taxes.
You may ask; "What are allowable mileage tax deductions?"
Deductible travel expenses can include expenses incurred in an automobile, when flying, where someone stays during a business trip, and even what someone eats during their business travel. While 100% of the travel expenses are not deductible, a good percentage of them are.
Actual Costs or the Standard Mileage Rate
Automobile expenses include the maintenance costs of the vehicle, the cost of fuel, and the cost of repairs for the travel. Automobile expenses may also be considered by the number of miles that someone travels to complete their job. This is considered a mileage rate per year and will allow a percentage of the costs to be deducted from your taxes.
Meals Deduction While Traveling on Business
Food is also deductible; however only 50% of the money spent can be deducted as a travel expense. It is a good idea to keep your receipts when you are traveling on business, so that you can be sure to include the cost of all meals when you file.
When filing for travel expense deductions, the method you will need to use to file will be dependent on if you are self-employed or if you have an employer. If you are employed by an employer, you will more than likely have to file an itemized deduction on a Schedule A.
If you are self-employed, you may file a deduction against your self-employment income.
In order to get the most deductions that you possibly can, it is important to take the time to learn about what expenses are deductible and which are not. You need to document all money that you spend to do your job so that you can be sure to get all of the deductions that you possibly can. Angela Wells