Work related travelling expenses

| September 1, 2013

Nobody likes to pay taxes. Taxes are the hard-earned money from which people have to part away. However there are certain things that can help one to cut ?down the amount of tax payable. Work related expenses are some of those expenses which are most commonly claimed for tax deductions. ?These claims are keenly scrutinized by the tax officers as they tend to be fake at times. The tax offices daily find similar claims to be fake or unidentifiable. If one is working somewhere then one may be able to deduct the unpaid work expenses as one of the itemized deductions over schedule. The business expenses of an employee are subject to 2% tax deductions.

Some of the commonly claimed job-related expenses comprise of travel and car, self-education and uniform. ?The Tax Offices closely analyses tax returns annually in order to identify some occupations where:

  • mean amount of claim is high

  • First time claimers are more

  • If the number of people claiming rises significantly

One can conveniently deduct the travelling expenses that one incurred as an employee. Work related travelling expenses may include car expenses, transportation, meal, lodging etc. one can also reduce work-related education expenses. One claims for work related expenses under line 21 of schedule A.

Commuting expenses between home and the work place are not subject to deductions. Deductible transportation expenses include necessary and ordinary expenses for visiting different workplaces. If one has a space that one uses as the main center for conducting business then one can deduct the cost of commuting from home to office as work-related expense.

One can also deduct expenses of travelling between the residence and temporary work location which is outside the city where one normally lives. If one has more than one regular job locations which are away from home, then one can deduct the expenses of travelling between the temporary location and home which is within the city.

In determining the deductibility of tax for commuting expenses when one travels outside the radar of the working area, the exact location of the first home is first determined. The taxed home is the main place of work or business, irrespective of where one maintains the family home.

Some of the few simple things that one should particularly remember before claiming work-related expenses are,

  • One should have paid the expenses personally that one is claiming.

  • The deductible expenses are those which are work-related and not the private ones. In case the expenses have been already reimbursed by the employer, then they should not be claimed.

  • receiving allowances from employer is not subject to tax inference, and

  • If the total claims are more than $300 then one needs to display written evidence.

One can also opt for expert advice before claiming for job-related expenses. There are professional groups that render advises on tax deductions. One can refer them online as well as offline. The expert advise of the professionals shall significantly help one to lessen down the amount of payable tax.


Work related travelling expenses


Category: Tax

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