Commuting and Meal Expenses
Travel and Entertainment Expense Deductions
Vacationing for pleasure and commuting to work are not deductible. But if you travel on business or entertain for business, you may be entitled to a deduction. Unreimbursed employee travel expenses are subject to the 2% of adjusted gross income floor for miscellaneous itemized deductions. If you are self-employed, these expenses are deductible as a business write-off; they are not subject to the 2% floor.
To deduct travel costs for transportation, meals, and lodging, generally you must be "away from home" (outside your area of work). For one-day trips within your general business area, transportation costs are still deductible, but your meals are not deductible.
Meals and entertainment costs are subject to a 50% limit, so even if they are a deductible expense, only half the cost is a tax write-off.
Employees who are reimbursed for travel and entertainment costs by their employer under an accountable plan do not claim any deductions for these expenses (the employer deducts them). These reimbursements are not income reported to employees on Form W-2.
