Everybody loves vacations but nobody likes paying for them. Imagine if uncle Sam could pick up part of the tab for your trip. Well he can if you do it right. If your line of work requires you to travel you can combine your family vacation with your work trip and claim this expense on your tax return.
Claiming travel on your tax return is not about trying to cheat on your taxes though. Rather, it’s about taking advantage of work related travel and having a family vacation on the same trip. Don’t think you can cheat on your taxes and get away with it. Claiming a travel deduction when you’ve never done it before raises a red flag with the IRS.
The trick to making your vacation a tax deductible is knowing what is work related and what is tax deductible. If you have proof that the expenses you claimed were work related you can come out of any tax audit unscathed. Here is what you can deduct.
If the purpose of your trip is primarily for business the cost of your transportation is fully deductible. Keep in mind that only your ticket (and not your family members) is deductible.
Your hotel stay is also fully deductible. But if you extend your vacation a few extra days to spend with the family, only the days that were business-related can be deducted.
If you need a car during your trip for business purposes then the cost of it is tax deductible.
The costs of your meals are only 50% deductible.
If you incurred other fees during your business trip they are also deductible. These include laundry costs, tips, cab fare and internet access fees to name a few.
If your job doesn’t require you to travel you’re not out of luck. You can also deduct travel expenses if you’re looking for work too – even if you don’t get hired.