Travel Tax Deductions: A Complete Guide for Business Travelers
If you travel for work, you could be missing thousands of dollars in tax deductions every year. Learn exactly what qualifies, how to calculate it, and how to document it for the IRS.
Calculate My Deductions Free →Also see: Per Diem Calculator | Remote Worker Deductions | 1099 Write-Offs
What Travel Expenses Are Tax Deductible?
The IRS allows self-employed workers and 1099 contractors to deduct ordinary and necessary expenses for business travel away from their tax home. The key requirement: your trip must take you away from your regular place of work long enough that you need to sleep or rest.
Deductible Travel Expenses Include:
- Meals and incidentals (using per diem rates or actual expenses)
- Lodging (hotels, Airbnb, etc.)
- Transportation (flights, rental cars, gas, tolls, parking)
- Mileage for driving your own vehicle
- Baggage and shipping costs
- Laundry and dry cleaning during trips
Per Diem vs. Actual Expenses
You have two choices for deducting meals during business travel:
Option 1: Per Diem Rates
Use the IRS standard daily allowance for your destination. No need to save meal receipts.
Rates range from $59 to $79+ per day depending on location.
Option 2: Actual Expenses
Track and deduct 50% of actual meal costs. Requires saving every receipt.
Usually more work for less benefit.
Most self-employed workers save more time and money using per diem rates.
The 50-Mile Rule and Tax Home
Your tax home is generally the city or area where your main place of business is located. To qualify for travel deductions, you typically need to travel far enough from your tax home that an overnight stay is necessary. While the IRS does not specify an exact distance, the commonly used benchmark is 50 miles from your tax home.
WriteOffRoad automatically measures the distance of each trip from your home address and flags any trip over 50 miles as potentially qualifying for per diem deductions. This applies equally to remote workers and in-office professionals.
How to Document Travel Deductions
The IRS requires adequate records for travel deductions. For each business trip, you should document:
Dates & Destination
When you left and returned, and where you traveled. Your Google Maps Timeline provides GPS-verified proof of exactly where you were and when.
Business Purpose
Why the trip was necessary for your work. Client meetings, job sites, conferences, and training all qualify as business purposes.
Amounts
How much you spent or the per diem rate for your destination. WriteOffRoad calculates the correct GSA rate automatically and provides exportable reports.
Common Travel Tax Deduction Mistakes
Not claiming per diem at all
Many self-employed workers don't realize they can use per diem rates instead of actual receipts. This is the biggest missed deduction we see — often worth $2,000–$8,000+ per year for frequent travelers.
Using the wrong per diem rate
Per diem rates vary by location and change each fiscal year (October 1). Using the standard rate when a higher locality rate applies means leaving money on the table.
Forgetting the first/last day rule
The first and last day of a business trip qualify for 75% of the M&IE rate, not 100%. Getting this wrong can trigger an audit adjustment.
Not amending prior year returns
You can go back up to 3 years and file amended returns to claim travel deductions you missed. If you had your Google Timeline enabled, that data is still available.
Automate Your Travel Tax Deductions
WriteOffRoad eliminates the manual work of calculating travel deductions. Upload your Google Maps Timeline, set your home address, and get a complete breakdown of every qualifying trip with the correct per diem rate applied automatically.
IRS Compliance & Data Sources
Rate Sources
- CONUS Rates: General Services Administration (GSA), published under IRS Publication 1542
- OCONUS Rates: Department of Defense (DoD) for US territories; US State Department for 228+ foreign countries
- Fiscal Years: FY2014 through FY2026, with seasonal rate variations where applicable
- Mileage Rates: IRS standard mileage rate for business use of a personal vehicle
IRS Rules Applied Automatically
- 75% Partial Day Rule: Per IRS Publication 1542, first and last days of a business trip receive 75% of the M&IE rate. Full (middle) days receive 100%.
- Multi-Day Trip Grouping: Consecutive travel days are grouped into business trips, even across multiple cities.
- 50-Mile Threshold: Trips must be more than 50 miles from your tax home to qualify for per diem deductions.
- Lodging Exclusion on Final Day: Lodging is included on first and middle days only, not on the final travel day.
Disclaimer: WriteOffRoad is an educational and informational tool for estimating travel-related tax deductions. It does not constitute tax, legal, or financial advice. Per diem calculations are based on publicly available IRS, GSA, DoD, and State Department data. Always consult a qualified tax professional before filing your return.
Frequently Asked Questions About Travel Tax Deductions
What travel expenses are tax deductible?
Deductible travel expenses include transportation (flights, car rental, gas, tolls), lodging, meals (at per diem rates or 50% of actual costs), and incidental expenses like tips and laundry. The travel must be primarily for business purposes and take you away from your tax home.
How do I prove my travel was for business?
The IRS requires documentation of the business purpose, destination, dates, and amounts for travel deductions. Google Maps Timeline data provides GPS-verified proof of your travel locations and dates. WriteOffRoad can generate Map Verification Reports showing your exact route for each business trip.
Can I deduct travel from prior years?
Yes, you can file amended returns (Form 1040-X) for up to three prior tax years to claim travel deductions you missed. WriteOffRoad includes per diem rate data back to fiscal year 2014 to support these amendments.
What is the difference between per diem and actual expenses?
Per diem uses a flat daily rate set by the IRS for meals and lodging, eliminating the need for individual receipts. Actual expenses require you to track and deduct 50% of real meal costs with receipts. Most self-employed workers save more time and money using the per diem method.
Do I need to stay overnight to claim travel deductions?
Generally, yes. The IRS requires that your trip be long enough to require sleep or rest. Day trips to nearby locations typically do not qualify for per diem deductions, but trips over 50 miles from your tax home where you need overnight rest do qualify.
Looking for fast calculations? Try the per diem calculator.