Planning a Summer Trip? Turn your Travels into Tax Deductions
- Steve Julal
- Jul 8
- 2 min read
Updated: Jul 16
If you or your employees are traveling for business this summer, it’s important to understand which travel expenses can be deducted under current tax law. To qualify, the trip must be necessary for your business and include an overnight stay within the United States.
Under the Tax Cuts and Jobs Act (TCJA), employees can no longer deduct unreimbursed business travel expenses on their personal tax returns which stands until the end of the year.
Self-employed individuals and businesses, however, can continue to deduct qualifying business-related travel costs.
What Travel Expenses Are Deductible?
For business-related, overnight travel, the following expenses are generally deductible:
Airfare, train fare, and taxi or ride-share services
Lodging and meals (limited to 50% of the meal cost in 2025)
Tips, baggage fees, and other travel incidentals
Business-related dry cleaning, phone calls, and laptop rentals
While meals don’t need to be directly tied to a business meeting, they must still be reasonable in cost. The IRS doesn't disallow meals solely because they occur at upscale restaurants or hotels, but lavish or extravagant expenses are not permitted.
What’s Not Deductible?
Personal or entertainment expenses such as sightseeing tours, movies, and pet boarding are not deductible. It’s critical to distinguish clearly between business and personal activities.
Combining Business and Personal Travel
If your trip includes both work and leisure, expenses must be allocated accordingly. Follow these general rules:
Meals and lodging are only deductible on days where business is conducted.
Travel costs (e.g. airfare) are fully deductible only if the primary purpose of the trip is business. If the trip is mainly for personal reasons, travel costs are not deductible.
Time allocation matters. The IRS may scrutinize how your time was spent to determine the trip’s primary purpose.
** Note: Rules for international travel are more stringent, with different thresholds for what qualifies as business-related.
Consider these Special Cases:
Conferences and Seminars
You must be able to show that the event is directly related to your business. Keep registration materials, agendas, and receipts.
Spousal Travel
Generally, you can’t deduct your spouse’s travel expenses unless they are an employee of the business and their presence serves a clear business purpose.
Protect Your Deductions
Tax rules surrounding travel can be complex especially when personal time is involved. To maximize your deductions and stay audit-ready:
Keep detailed records, including dates, locations, business purposes, and receipts.
Document who attended any business meals.
Be prepared to substantiate the business purpose of each trip component. Have questions about your travel plans or need help navigating the nuances of deductibility? Contact us for tailored guidance based on your situation.
