Understanding the Tax Implications of Travel Reimbursement

Is it Deductible?

While travel expenses are generally tax-deductible, there are certain rules and limitations that apply. The IRS allows employees to deduct travel expenses that are ordinary and necessary for their job. However, personal expenses or expenses that are extravagant or lavish in nature are not deductible.

Additionally, employees must meet certain criteria to be eligible for travel expense deductions. The travel must be away from the employee's tax home, the travel must be for a temporary assignment, and the employee must not have a regular place of business at the travel location.