Can I deduct job-related travel expenses?
For most employees, the answer is no.
The Tax Cuts and Jobs Act (TCJA) suspended the federal deduction for unreimbursed employee business expenses, including most job-related travel expenses. As a result, W-2 employees generally can't deduct travel costs they pay out of pocket for work.
However, if you're self-employed, you may be able to deduct ordinary and necessary business travel expenses on Schedule C. In addition, certain employees who qualify to file Form 2106, Employee Business Expenses, may still be eligible for a deduction. These taxpayers generally include:
- Armed Forces reservists
- Qualified performing artists
- Fee-basis state or local government officials
- Employees with impairment-related work expenses
Travel expenses must be directly related to your business or profession. Personal, lavish, or extravagant expenses aren't deductible.
What Is a Tax Home?
Your tax home is generally the city or area where your principal place of business or main work location is located, regardless of where your family residence is.
This is an important distinction because deductible travel expenses usually involve traveling away from your tax home for business purposes.
If you work in more than one location, your tax home is typically the area where your main place of business is located. Factors such as the amount of time spent at each location, the level of business activity, and the income earned from each location may help determine your tax home.
Understanding your tax home is critical because travel between your personal residence and your tax home is generally considered commuting and isn't deductible.
What Travel Expenses Can Be Deducted?
If you qualify to claim business travel expenses, several categories of expenses may be deductible.
Transportation Expenses
Transportation costs incurred while traveling for business may be deductible, including:
- Airfare
- Train tickets
- Bus fares
- Taxi, rideshare, shuttle, or airport transportation
- Baggage fees
- Business-related car rental expenses
If you drive your own vehicle for qualified business travel, you may choose to deduct:
- The business portion of your actual vehicle expenses, or
- The IRS standard mileage rate if you're eligible to use that method
Only business-related miles qualify. Personal travel and normal commuting mileage don't qualify for a deduction.
Lodging and Meals
You may deduct lodging expenses incurred while traveling away from your tax home for business.
Eligible meal expenses generally include:
- Food and beverages
- Sales tax
- Tips and gratuities
For tax year 2026, most business meals remain subject to the 50% deduction limit. Meals must be directly related to business and cannot be lavish or extravagant under the circumstances.
Entertainment expenses are generally not deductible, even if they occur during a business trip.
Shipping and Baggage
You may deduct expenses for:
- Shipping luggage related to your business trip
- Shipping display materials, equipment, or supplies used for business purposes
- Transporting materials between your regular business location and a temporary work site
Other Deductible Travel Expenses
Other ordinary and necessary travel expenses may include:
- Laundry and dry-cleaning expenses while traveling
- Business phone calls and internet charges
- Tips paid during business travel
- Business-related gifts (subject to IRS limitations)
- Parking fees and tolls related to business travel
What Expenses Aren't Deductible?
Common nondeductible travel expenses include:
- Commuting between your home and regular workplace
- Personal sightseeing or vacation activities
- Family members' travel expenses unless they have a legitimate business purpose
- Entertainment expenses
- Lavish or extravagant expenses that aren't necessary for your business
When a trip includes both business and personal activities, only the business-related portion is generally deductible.
Keeping Good Records Matters
The IRS expects you to maintain records that support your travel deductions. Consider keeping:
- Receipts
- Invoices
- Mileage logs
- Travel itineraries
- Documentation showing the business purpose of the trip
Good records can help support your deduction if questions arise later.
Where Do I Enter Travel Expenses?
If you're self-employed, business travel expenses are generally entered in the business income and expenses section of your return and reported on Schedule C.
If you're one of the limited categories of employees eligible to file Form 2106, enter your travel expenses in the Employee Business Expenses section located under Itemized Deductions