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Deductions For Business Travel Expenses

If you travel away from home overnight on business, you can deduct these travel expenses:

• Airline, train, or bus fares — This includes first-class.
• Actual expenses or standard mileage rate
• Business-related tolls and parking

You might rent a car while you’re away from home on business. If you do, you can deduct only the business-use portion of the expenses. To learn more, see the Car and Truck Expenses tax tip.

• To and from the airport or station
• From one customer to another
• From one place of business to another
• Transportation from your temporary lodging to your temporary work assignment
• Baggage charges and transportation costs for sample and display materials
• Your own meal
• Another person’s meal

To learn more, see the Meals and Entertainment tax tip.

• Dry cleaning and laundry expenses
• Phone, fax, and Internet expenses
• Tips relating to deductible travel expenses
• Other expenses, like public stenographer’s fees or computer rental fees

You can’t deduct expenses if they’re lavish or extravagant.

If your trip is mainly for business but includes some personal activities, you can deduct these expenses:

• Travel expenses to and from the business destination
• Food and lodging during the business portion of the stay

However, if the trip is mainly for personal reasons, you can’t deduct those expenses. This is true even if you conduct some business at the destination. You can deduct business expenses you incur at the destination, regardless of the purpose of the trip.

If you attend a convention that benefits or advances your business, you can also deduct appropriate expenses. These include:

• Round-trip travel
• Meals and lodging
• Display costs

Travel outside the United States

You can deduct the cost of travel outside the United States if your entire trip is devoted to business activities. You could take a trip mainly for business, but engage in some personal activities there. If so, you have to prorate travel costs between your business and personal activities. Prorated costs include meals and lodging en route.

You can’t deduct expenses for travel as a form of education. Ex: If you’re a professor of Asian history, you can’t deduct the cost of a tour of Japan, even though the trip will enhance your lectures.

Special rules apply for conventions held outside the North American area and on cruise ships.

To learn more, see Publication 463: Travel, Entertainment, Gift, and Car Expenses at www.irs.gov.

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• Business Taxes

7 Rules You Should Know About Deducting Business Travel Expenses

• What Is Your "Tax Home"?

Charges on Your Hotel Bill

The 50% rule for meals, the cost of bringing a spouse, friend or employee.

• Using Per Diems To Calculate Employee Travel Costs

Combined Business/Personal Trips

International business travel.

• The Cost of a Cruise (Within Limits)

Frequently Asked Questions (FAQs)

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The IRS has a specific definition for business travel when it comes to determining whether these expenses are tax deductible. The agency says business travel is travel that takes you away from your tax home and is "substantially longer than an ordinary day's work." It requires that you sleep or rest while you're away from home, and that you do so. The travel must be "temporary." This means it can't last a year or more.

Key Takeaways

• You can deduct expenses that take you away from your tax home for a period of time that would require you to spend the night.
• Your tax home is the city or area where your regular place of business is located.
• You’re limited to 50% of the cost of your meals.
• Your trip must be entirely business-related for costs to be deductible, but special rules apply if you travel outside the U.S.

What Is Your "Tax Home"?

Your tax home is a concept set by the IRS to help determine whether a trip is tax deductible. It's defined by the IRS as the entire city or general area where your regular place of business is located. It's not necessarily the area where you live. 

Your tax home can be used to determine whether your business travel expenses are deductible after you've determined where it's located. You can probably count your expenses during travel as business deductions if you have to leave your tax home overnight or if you otherwise need time to rest and sleep while you're away.

Check with a tax professional to make sure you're accurately identifying the location of your tax home.

Charges for your room and associated tax are deductible, as are laundry expenses and charges for phone calls or for use of a fax machine. Tips are deductible as well. But additional personal charges, such as gym fees or fees for movies or games aren't deductible.

You can deduct the cost of meals while you're traveling, but entertainment expenses are no longer deductible and you can't deduct "lavish or extravagant" meals. 

Meal costs are deductible at 50%. The 50% limit also applies to taxes and tips. You can use either your actual costs or a standard meal allowance to take a meal cost deduction, as long as it doesn't exceed the 50% limit.

The cost of bringing a spouse, child, or anyone else along on a business trip is considered a personal expense and isn't deductible. But you may be able to deduct travel expenses for the individual if:

• The person is an employee
• They have a bona fide business purpose for traveling with you
• They would otherwise be allowed to deduct travel expenses

You may be able to deduct the cost of a companion's travel if you can prove that the other person is employed by the business and is performing substantial business-related tasks while on the trip. This may include taking minutes at meetings or meeting with business clients.

Using Per Diems To Calculate Employee Travel Costs 

The term "per diem" means "per day." Per diems are amounts that are considered reasonable for daily meals and miscellaneous expenses while traveling. 

Per diem rates are set for U.S. and overseas travel, and the rates differ depending on the area. They're higher in larger U.S. cities than for sections of the country outside larger metropolitan areas. Companies can set their own per diem rates, but most businesses use the rates set by the U.S. government.

Per diem reimbursements aren't taxable unless they're greater than the maximum rate set by the General Service Administration. The excess is taxable to the employee.

If you don't spend all your time on business activities during an international trip, you can only deduct the business portion of getting to and from the destination. You must allocate costs between business and personal activities.

Your trip must be entirely business-related for you to take deductions for travel costs if you remain in the U.S., but some "incidental" personal time is okay. It would be incidental to the main purpose of your trip if you travel to Dallas for business and you spend an evening with family in the area while you're there. 

But attempting to turn a personal trip into a business trip won't work unless the trip is substantially for business purposes. The IRS indicates that “the scheduling of incidental business activities during a trip, such as viewing videotapes or attending lectures dealing with general subjects, will not change what is really a vacation into a business trip."

The rules are different if part or all of your trip takes you outside the U.S. Your international travel may be considered business-related if you were outside the U.S. for more than a week and less than 25% of the time was spent on personal activities. 

You can deduct the costs of your entire trip if it takes you outside the U.S. and you spend the entire time on business activities, but you must have "substantial control" over the itinerary. An employee traveling with you wouldn't have control over the trip, but you would as the business owner would.

 The trip may be considered entirely for business if you spend less than 25% of the time on personal activities if your trip takes you outside the U.S. for more than a week.

You can only deduct the business portion of getting to and from the destination if you don't spend all your time on business activities during an international trip. You must allocate costs between your business and personal activities.

The Cost of a Cruise (Within Limits) 

The cost of a cruise may be deductible up to the specified limit determined by the IRS, which is $2,000 per year as of 2022.  You must be able to show that the cruise was directly related to a business event, such as a business meeting or board of directors meeting.

The IRS imposes specific additional strict requirements for deducting cruise travel as a business expense.

How do you write off business travel expenses?

Business travel expenses are entered on Schedule C if you're self-employed . The schedule is filed along with your Form 1040 tax return. It lists all your business income, then you can subtract the cost of your business travel and other business deductions you qualify for to arrive at your taxable income.

What are standard business travel expenses?

Standard business travel expenses include lodging, food, transportation costs , shipping of baggage and/or work items, laundry and dry cleaning, communication costs, and tips. But numerous rules apply so check with a tax professional before you claim them.

The Bottom Line

These tax deduction regulations are complicated, and there are many qualifications and exceptions. Consult with your tax and legal professionals before taking actions that could affect your business. 

IRS. " Topic No. 511: Business Travel Expenses ."

IRS. " Publication 463 (2021), Travel, Gift, and Car Expenses ."

IRS. " Here’s What Taxpayers Need To Know About Business-Related Travel Deductions ."

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IRS Tax Tip 2023-15, February 7, 2023

Whether someone travels for work once a year or once a month, figuring out travel expense tax write-offs might seem confusing. The IRS has information to help all business travelers properly claim these valuable deductions.

Here are some tax details all business travelers should know

Business travel deductions are available when employees must travel away from their  tax home  or  main place of work  for business reasons. A taxpayer is traveling away from home if they are away for longer than an ordinary day's work and they need to sleep to meet the demands of their work while away.

Travel expenses  must be ordinary and necessary. They can't be lavish, extravagant or for personal purposes.

Employers can deduct travel expenses paid or incurred during a  temporary work assignment  if the assignment length does not exceed one year.

Travel expenses for  conventions  are deductible if attendance benefits the business. There are special rules for conventions held  outside North America .

Deductible travel expenses include:

• Travel by airplane, train, bus or car between your home and your business destination.
• Fares for taxis or other types of transportation between an airport or train station and a hotel, or from a hotel to a work location.
• Shipping of baggage and sample or display material between regular and temporary work locations.
• Using a personally owned car for business.
• Lodging and  meals .
• Dry cleaning and laundry.
• Business calls and communication.
• Tips paid for services related to any of these expenses.
• Other similar ordinary and necessary expenses related to the business travel.

Self-employed individuals or farmers with travel deductions

• Those who are self-employed can deduct travel expenses on  Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship) .
• Farmers can use  Schedule F (Form 1040), Profit or Loss From Farming .

Travel deductions for the National Guard or military reserves

National Guard or military reserve servicemembers can claim a deduction for unreimbursed travel expenses paid during the  performance of their duty .

Recordkeeping

Well-organized records  make it easier to prepare a tax return. Keep records such as receipts, canceled checks and other documents that support a deduction.

Subscribe to IRS Tax Tips

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The blurred lines of bleisure travel demands updated policies.

Published: June 24, 2024

In the era of remote work, many employees feel the need to maximize business travel and remote work and may mix the two. This could create headaches for companies that haven’t adequately outlined employee travel policies.  

In the era of remote work, many employees feel the need to maximize business travel and remote work and may mix the two, a trend known as 'bleisure' travel.

An August 2022 survey by Booking.com questioned adults who planned to travel for business or leisure in the next 12-24 months. The survey found 59% of respondents said traveling and exploring new places inspired them to be more productive at work.

As that happens, bleisure is becoming more common. A report released in August 2023 by the Global Business Travel Association found that of 4,700 business travelers surveyed, 62% are blending business with travel. However, this trend can create headaches for companies without clear employee travel policies and the technology to manage them.    

How can companies leverage technology and update their travel policies to keep up with the demand for bleisure travel? What role does expense management software, including automated expense reporting, mobile apps, and real-time expense tracking, play in helping companies balance the pros and cons of bleisure travel? Additionally, how can technology mitigate risks, such as fraud and an employer's duty of care?

Types of Bleisure Travel

Bleisure travel can come in several different forms. Employees may extend their work trips by adding vacation days before or after the business trip. They might also choose to bring their family with them or have them arrive before or after their business commitments.  

When allowed to work remotely, employees may even relocate to a vacation location. Once there, they may travel around the area, using the vacation spot as their home base. This can include visits to nearby cities, cultural exploration, and adventure travel. They might also invite friends and family to visit them for short or extended stays.

Challenges of Bleisure Travel for Employers

With rising interest in bleisure, there are several challenges that companies can understand and address. For example, companies cannot permit personal expenses to become business expenses. Productivity can also be a concern, as is managing perceptions of fairness when allowing employees to take advantage of bleisure travel versus those who remain in-person or hybrid employees.

Bleisure travel can also prove administratively burdensome. Allowing employees to work remotely should not create excessive health and safety risks or expose a company's data and intellectual property to unauthorized access. There's also a risk employees could engage in fraud, even accidentally, by classifying their personal expenses as business-related.

Technology to Manage Bleisure Travel

While bleisure travel can complicate the employee travel management process, each of these challenges can either be eradicated or mitigated with technology.

The inherent complexity of managing bleisure travel stems from the challenge of classifying expenses quickly and accurately. Automated expense reporting captures and categorizes expenses from transactions, allowing employees to separate business and personal travel expenses quickly and seamlessly, especially if they can do so via a mobile app. It also reduces the manual effort of expense reporting and the potential for error, misstatements, and excessive delays in submitting expense reimbursement requests.

Integrating travel booking with the expense system is also critical. It facilitates the process and removes much of the administrative burden from employees, making it easier for them to submit timely and accurate expense reports.

Consequently, employers can see expenses in real time, making monitoring and adjusting travel-related budgets easier. This visibility can also detect policy violations before they become repetitive.  

Analytics and reporting technology provide insights into travel spending patterns, which companies can use to refine their travel policies, amend department budgets, and facilitate the employee experience. For example, suppose the travel data shows that employees opt for certain airlines or hotels when traveling to and from a location. In that case, an employer may be able to negotiate better rates and terms .

Company Data

The right technology solutions can ensure employees access company data using safe and secure platforms. For example, virtual private networks can make it harder for unauthorized users to access company data when an employee uses public Wi-Fi networks. Similarly, mobile device management software allows companies to manage devices remotely, which includes erasing sensitive data if a device becomes lost or stolen. This is in addition to standard security technology, including antivirus, multi-factor authentication, and secure file-sharing technology.

Employee Tracking and Safety

Additionally, there are many technology solutions to help employers track employees' locations, from GPS tracking to check-in systems to remote work tools. Regardless of the solution, every employee must understand and consent to any technology if it's being used to monitor their location and activities. This will facilitate compliance with regulations and relevant laws and can help an employer build and maintain employee trust.

Employers should also be able to locate employees quickly for business-related reasons or in case of emergency. Here, too, technology can help.

The Takeaway

Bleisure travel is a natural outcome and companion to remote/hybrid work . It's also an excellent way for in-office employees to be rewarded for sacrificing personal time for business travel. Proactive and flexible company policies and a robust suite of technology tools designed to monitor and optimize the travel experience can be critical. When handled correctly, employees and employers can benefit from bleisure travel in all its forms.

Learn more about American Express’s suite of supplier payment and corporate T&E solutions  here .

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Driving down taxes: Auto-related tax deductions

Key takeaways.

• If you have a full-time job but use your vehicle for work duties (driving to meetings, picking up supplies, etc.), your reimbursements from your employer are likely to be tax-free for those driving costs.
• If you’re self-employed, you typically can deduct expenses for the miles you drive or for the actual automobile costs for business purposes.
• You can calculate your driving deduction by adding up your actual expenses or by multiplying the miles you drive by the IRS’s standard mileage rate.
• The per-mile rate for 2023 is 65.5 cents per mile. The rate increases to 67 cents per mile for 2024.

Deducting auto expenses

You can make car expenses work for you. For many Americans, work and personal time have become increasingly intertwined over the years. While this certainly has its drawbacks, it can be a major benefit come tax time for those who drive as part of their work. Knowing all of the auto-related deductions you’re entitled to can ensure that your automobile is working as hard for you as you are for your business.

The first thing an auto-using taxpayer needs to do is determine how they are using their car, said Julian Block, a Larchmont, New York–based tax attorney who is the author of "Tax Deductible Travel and Moving Expenses: How to Take Advantage of Every Tax Break the Law Allows." One type of use includes personal use of your vehicle and the other includes business use. People often do a little of both with the same vehicle. "If you use your car exclusively in your business, you can typically deduct all of the car expenses," said IRS representative Sara Eguren. If you use your car for both business and personal purposes, you'll need to divide your expenses based on your mileage for business and your mileage for personal use."

First up: If you are self-employed, but occasionally use your personal auto for your business, you're likely qualified for a business expense deduction.

“If you use your car for anything business related, other than simply commuting from home to work, there might be deductions you can take," said Andrew Schrage, co-owner of the Chicago-based personal-finance site MoneyCrashers.com. "Don’t miss out."

More miles, more money

Mileage is a big deduction, Schrage noted, adding, "Although it may not seem like much, it adds up."

If you drive from your office to a job-related destination—a sales meeting, to get office supplies, or to the airport—those miles are typically deductible.

For 2023, the mileage rate is 65.5 cents per mile. This amount increases to 67 cents per mile for 2024. For more information, refer to IRS Publication 463, Travel, Gift, and Car Expenses . For a list of current-year and prior-year mileage rates see " Standard Mileage Rates ." There's a separate table for those who lease their vehicles. If you are self-employed, you may either deduct your actual expenses or use the optional standard mileage rate to calculate deductions provided you used the standard mileage rate in first year that you used the auto for business. Otherwise, you will need to use the actual expense method.

“If you’re using your vehicle, say, 75% of your time of use for business, that same percentage of all of your qualified auto expenses are deductible," says Block.

"If it’s a car used exclusively for business, it’s 100%. If you’re claiming actual expenses, things like gas, oil, repairs, insurance, registration fees, lease payments, depreciation, bridge and tunnel tolls, and parking can all be deducted." Just make sure to keep a detailed log and all receipts, he advises, and keep track of your yearly mileage and then deduct the percentage used exclusively for work. One smart tip, says Block: “If you have a gas guzzler, you’re likely better off taking the actual deductions.”

TurboTax Tip: If you’re self-employed and claim a home office, all the driving you do from your home to clients’ offices is typically deductible. If you don’t have an office in the home, the first and last trips of the day are typically considered non-deductible commuting.

Keeping good records

Illinois CPA Neil Johnson recommends you keep meticulous records throughout the year to ensure you are prepared when tax time arrives. The more information the better, says Johnson, who has adopted the nickname given him by one of his clients and is now known as "the Tax Dude." "When deducting your auto expenses, the most important thing is keeping detailed records of your all of your miles," he said. "Include what clients you were seeing, the purpose of the trip, the job being worked on. You could enter it into a simple Excel spreadsheet each day or use an app on your phone and soon it’ll become second nature.”

If you are self-employed and claim a dedicated home office—a space set aside exclusively for business—the driving you do from your home to clients’ offices is typically deductible.

"If you don’t have a home office," said Block, "your first and last trips of the day are typically considered non-deductible commuting." In other words, if you are a freelancer who regularly drives to different clients' offices in a day, the first trip out from home and the last drive back are typically considered commuting and are not usually deductible. However, the distance driven between each client can be deducted.

Cruise control

From Block and Schrage come a few cool, little-known auto-related expenses you may deduct—and one that you may not deduct.

• If you own rental property, you may claim the mileage driven to and from your property when you go to maintain or check on it, says Block.
• Transportation expenses—including parking and tolls—for volunteer work at qualifying charities (including nonprofit board meetings) are considered charitable donations and may be included as an itemized deduction on your income taxes, according to Schrage. The rate per mile, however, is lower: 14 cents per mile.
• If you’re using your car for business, even car-washing and polishing expenses are deductible when claiming actual expenses rather than the standard mileage rate, Block says.
• Block says that if you incur medical expenses of over 7.5% of your adjusted gross income (AGI) you may deduct health-related travel expenses. This includes travel to the medical provider and parking as well.
• Fines for traffic tickets are never deductible, even if you receive them doing work-related driving, says Block.

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What Is the Qualified Business Income Deduction (QBI) & Who Qualifies?

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Written by TurboTaxBlogTeam

• Published Jun 21, 2024

The qualified business income (QBI) deduction — also called the “Section 199a deduction” — is one of the many write-offs available to lower your tax bill and save money as a business owner.

When you file business taxes , you may be eligible to deduct a portion of your income to save money, but you’ll need to determine if you qualify for the QBI deduction first.

Let’s take a closer look at how the QBI deduction works and who qualifies, to determine if you can benefit from this tax write-off.

Table of Contents

What is qualified business income (qbi).

Qualified business income (QBI) is the net income or loss from a trade or business. This includes income generated from partnerships, S -corporations, sole proprietorships, and some trusts. QBI is used to determine the eligibility for the QBI deduction. 

Generally, QBI includes the deductible portion of self-employed health insurance, self-employment tax, and contributions to qualified retirement plans such as SIMPLE and SEP plans.

There are several items that are specifically excluded from the calculation of QBI, including:

• Items that aren’t included in taxable income
• Capital gains or losses
• Wage income
• Interest income that can’t be allocated to a business
• Commodities transactions
• Foreign currency gains and losses
• Annuities that aren’t connected to your trade or business
• Reasonable compensation from an S-corp
• Guaranteed payments from a partnership
• Qualified real estate investment trust (REIT) dividends
• Publicly traded partnership (PTP) income

The IRS has a comprehensive list of items that aren’t included in the QBI calculation, so be sure to confirm what qualifies each year before you claim this deduction.

What is the QBI deduction?

The QBI deduction was introduced as part of the Tax Cuts and Jobs Act (TCJA) in 2017. The TCJA changed tax rules affecting businesses, giving business owners new ways to save on federal taxes .

The QBI deduction has two main components: one based on the qualified business income (QBI) and another for the real estate investment trusts (REIT) and income from publicly traded partnerships (PTP).

While the QBI component of this deduction allows you to deduct up to 20% of your QBI from your business this compenent of the QBI deduction may be limited by the type of trade or business you own, the amount of W-2 wages paid, and the unadjusted basis immediately after acquisition (UBIA) of property held by your trade or business.  

The REIT/PTP component of the deduction is 20% of the qualified REIT dividends and PTP income. Unlike the QBI component, the REIT/PTP component isn’t affected by W-2 wages or the UBIA of business property. However, there may be limits to the REIT/PTP component depending on the type of trade or business and your taxable income.

In total, the deduction is limited to the lesser of:

• The QBI component plus the REIT/PTP component; or
• 20% of your taxable income minus net capital gain

How long is the deduction available?

The TCJA only applies to tax years beginning after December 31, 2017, and expires for tax years end on or before December 31, 2025. Therefore, the time period to be able to claim this deduction and save on small business taxes is limited.

Keep in mind that there are other tax deductions you can qualify for after the expiration of the QBI deduction. As a business owner, it’s important to keep detailed records so you can work with a tax expert to maximize your tax savings at the end of each year.

Who qualifies for the QBI deduction?

Businesses have to meet certain criteria to qualify for the QBI deduction, so not every business is eligible. In this next section, we’ll outline who qualifies for the QBI deduction so you can determine if you qualify.

Types of businesses

Only certain types of businesses are eligible for the QBI deduction. As mentioned above, the QBI deduction is available to sole proprietorships, partnerships, S corporations, trusts, and estates.  All of these entities are considered pass through entities. C-corporations are not eligible for the QBI deduction since they are their own taxable entity. 

You’re also not eligible for the QBI deduction if you earn income as an employee rather than as a business owner or partner. 

Specified service trades or businesses (SSTBs) are only eligible for the QBI deduction if your income doesn’t exceed a certain threshold. You may also be within the phase-in range, which means you could still be eligible for the QBI deduction.

SSTBs are businesses that perform services in the fields of:

• Actuarial science
• Performing arts
• Financial services
• Investing and investment management

Your business or trade may also be considered an SSTB if you trade or deal in certain assets or if the primary asset of your business is the reputation or skill of one or more employees. For example, if your business income is a result of endorsing products or services or using your image, likeness, or voice, you’re considered an SSTB, and your income isn’t eligible for the QBI deduction if it exceeds the threshold.

Income limits for the QBI deduction

There are also income limits that may affect your eligibility or the amount you receive as a result of the QBI deduction. The 2023 income threshold is $182,100 for single filers and $364,200 for joint filers.

The income limits for the QBI deduction have increased slightly for 2024 . Single filers must make $191,950 or less, and joint filers must make $383,900 or less. If you’re at or below these thresholds, you may be eligible for the QBI deduction.

At a certain income level, the QBI deduction begins to phase out (reduce in amount). For 2023, the QBI deduction phases out from $182,101 to $232,100 for single filers and $364,201 to $464,200 for joint filers.

The phase out income level changes with each tax year. In 2024, the QBI deduction will be phased out if your income is between $191,951 to $241,950 for single filers and $383,901 to $483,900 for joint filers.

Once you reach the upper threshold of the phase-out income limit, you’re no longer eligible for the QBI deduction. If your income is within the phase-out range, you may be eligible for a smaller QBI deduction.

Excluded income

Generally speaking, the QBI applies to income that’s connected to a sole proprietorship, partnership, S corporation, or a certain type of trusts. This includes the deductible portion of self-employment tax and contributions to qualified retirement plans.

While various types of business income are eligible for the QBI deduction, certain types aren’t. Wage income, income that’s not included in taxable income, capital gains and losses, and certain other types of income are excluded. The QBI deduction also excludes income generated by foreign currency gains, commodities transactions, and certain dividends.

In order to be eligible for the QBI deduction, you also need to conduct business within the United States. Income that’s not connected to business conducted within the United States isn’t eligible for the QBI deduction.

If you have any questions about the types of income that qualify for the QBI deduction or whether your business qualifies, consult a tax expert who can evaluate your situation.

How do you calculate the QBI deduction?

If you want to calculate your QBI deduction, you need to determine whether you’re below or above the income threshold for the QBI deduction phase-out.

If you’re below the threshold — even if you’re an SSTB — your QBI deduction will be the lesser of:

• Your QBI multiplied by 20%
• Your taxable income multiplied by 20% — minus net capital gains and qualified dividends

In total, your QBI can’t be more than 20% of your taxable income.

For businesses that are above the income threshold, your QBI deduction will be the lesser of:

• 20% of your QBI
• The greater of 50% of W-2 wages paid or 25% of W-2 wages paid plus 2.5% of UBIA

When your income exceeds a certain threshold as an SSTB, you may no longer be eligible for the QBI deduction. Eligibility for the QBI deduction may also depend on the type of income your business generates.

Keeping detailed records is an essential part of maximizing your tax deductions and reducing your tax bill. You can also get help from a tax expert to make sure you’re taking advantage of all the deductions and tax credits you’re eligible for.

No matter what moves you made last year, TurboTax will make them count on your taxes. Whether you want to do your taxes yourself or have a TurboTax expert file for you, we’ll make sure you get every dollar you deserve and your biggest possible refund – guaranteed.

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Key benefits of travel medical insurance

• Travel medical insurance coverage
• Who needs medical travel insurance?

Choosing the right travel medical insurance

How to use travel medical insurance, is travel medical insurance right for your next trip, travel medical insurance: essential coverage for health and safety abroad.

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate insurance products to write unbiased product reviews.

• Travel medical insurance covers unexpected emergency medical expenses while traveling.
• Travelers off to foreign countries or remote areas should strongly consider travel medical insurance.
• If you have to use your travel medical insurance, keep all documents related to your treatment.

Of all the delights associated with travel to far-flung locales, getting sick or injured while away from home is low on the savvy traveler's list. Beyond gut-wrenching anxiety, seeking medical treatment in a foreign country can be exceedingly inconvenient and expensive.

The peace of mind that comes with travel insurance for the many things that could ail you while abroad is priceless. As options for travel-related insurance abound, it's essential to research, read the fine print, and act according to the specifics of your itinerary, pocketbook, and other needs.

Travel insurance reimburses you for any unexpected medical expenses incurred while traveling. On domestic trips, travel medical insurance usually take a backseat to your health insurance. However, when traveling to a foreign country, where your primary health insurance can't cover you, travel medical insurance takes the wheel. This can be especially helpful in countries with high medical care costs, such as Scandinavian countries.

Emergency medical evacuation insurance

Another benefit that often comes with travel medical insurance, emergency medical evacuation insurance covers you for any costs to transport you to an adequately equipped medical center. Emergency medical evacuation insurance is often paired with repatriation insurance, which covers costs associated with returning your remains to your home country if the worst happens. 

These benefits are for worst-case scenarios, but they might be more necessary depending on the type of trips you take. Emergency medical evacuation insurance is helpful if you're planning on traveling to a remote location or if you're traveling on a cruise as sea to land evacuations can be costly. Some of the best travel insurance companies also offer non-medical evacuations as part of an adventure sports insurance package.

It's also worth mentioning that emergency medical evacuation insurance is required for international students studying in the US on a J Visa. 

Types of coverage offered by travel medical insurance

The exact terms of your coverage will vary depending on your insurer, but you can expect most travel medical insurance policies to offer the following coverages.

• Hospital room and board
• Inpatient/outpatient hospital services
• Prescription Drugs
• COVID-19 treatment
• Emergency room services
• Urgent care visits
• Local ambulance
• Acute onset of pre-existing conditions
• Dental coverage (accident/sudden relief of pain)
• Medical care due to terrorist attack
• Emergency medical evacuation 
• Repatriation of mortal remains
• Accidental death and dismemberment

Travel medical insurance and pre-existing conditions

Many travel insurance providers will cover pre-existing conditions as long as certain conditions are met. For one, travelers need to purchase their travel insurance within a certain time frame from when they placed a deposit on their trip, usually two to three weeks. 

Additionally, travel insurance companies usually only cover stable medical conditions, which are conditions that don't need additional medical treatment, diagnosis, or medications.

Who needs travel medical insurance?

Even the best-laid travel plans can go awry. As such, it pays to consider your potential healthcare needs before taking off, even if you are generally healthy. Even if well-managed, preexisting conditions like diabetes or asthma can make a medical backup plan even more vital.

Having what you need to refill prescriptions or get other care if you get stuck somewhere other than home could be essential to your health and well-being. That's without counting all the accidents and illnesses that can hit us when away from home.

Individuals traveling for extended periods (more than six months) or engaging in high-risk activities (think scuba diving or parasailing) should also consider a solid medical travel plan. Both scenarios increase the likelihood that medical attention, whether routine or emergency, could be needed.

In the case of travel via the friendly seas, it's also worth considering cruise trip travel insurance . Routine care will be available onboard. But anything beyond that will require transportation to the nearest land mass (and could quickly become extremely expensive, especially if you're in another country).

Like other types of insurance, medical travel insurance rates are calculated based on various factors. Failing to disclose a preexisting health condition could result in a lapse of coverage right when you need it, as insurers can cancel your policy if you withhold material information. So honesty is always the best policy.

Even the best-laid travel plans can go awry. As such, it pays to consider your potential healthcare needs before taking off, even if you are generally healthy. Making the right choice when shopping for travel medical insurance can mean the difference between a minor hiccup in your travels and a financial nightmare. 

When a travel insurance company comes up with a quote for your policy, they take a few factors into consideration, such as your age, your destination, and the duration of your trip. You should do the same when assessing a travel insurance company. 

For example, older travelers who are more susceptible to injury may benefit from travel medical insurance (though your premiums will be higher). If you're traveling for extended periods throughout one calendar year, you should look into an annual travel medical insurance plan . If you're engaging in high-risk activities (think scuba diving or parasailing), you should seek a plan that includes coverage for injuries sustained in adventure sports.

In the case of travel via the friendly seas, it's also worth considering cruise trip medical travel insurance. Routine care will be available onboard. But anything beyond that will require transportation to the nearest land mass (and could quickly become extremely expensive, especially if you're in another country).

Travel medical insurance isn't just for peace of mind. If you travel often enough, there's a good chance you'll eventually experience an incident where medical treatment is necessary.

Before you submit your claim, you should take some time to understand your policy. Your travel medical insurance is either primary (you can submit claims directly to your travel medical insurance provider) or secondary (you must first submit claims to your primary insurance provider). In the case of secondary travel medical insurance, a refusal notice from your primary insurance provider, even if it does not cover medical claims outside the US, is often required as evidence of protocol.

On that note, you should be sure to document every step of your medical treatment. You should keep any receipts for filled prescriptions, hospital bills, and anything else documenting your medical emergency.

As many people have found out the hard way, reading the fine print is vital. Most travel insurance policies will reimburse your prepaid, nonrefundable expenses if you fall ill with a severe condition, including illnesses like COVID-19. 

Still on the fence about whether or not  travel insurance is worth it ? It's worth noting that many travel insurance plans also include medical protections, so you can also protect against trip cancellations and other unexpected developments while obtaining travel medical insurance.

While short, domestic trips may not warrant travel medical insurance, it may be a good idea to insure longer, international trips. You should also consider travel medical insurance for trips to remote areas, where a medical evacuation may be expensive, and more physically tasking trips.

While shopping for travel medical insurance may not be fun, a little advance leg work can let you relax on your trip and give you peace of mind. After all, that is the point of a vacation. 

Medical travel insurance frequently asked questions

Trip insurance covers any unexpected financial losses while traveling, such as the cost of replacing lost luggage, trip interruptions, and unexpected medical expenses. Travel medical insurance just covers those medical expenses without the trip interruption or cancellation insurance.

Travel insurance companies usually offer adventure sports as add-on coverage or a separate plan entirely. You'll likely pay more for a policy with adventure sports coverage. 

Many travel medical insurance policies now include coverage for COVID-19 related medical expenses and treat it like any other illness. However, you should double-check your policy to ensure that is the case.

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Business travel expert reveals how to navigate the cost of going green

Incorporating sustainability into business travel programs has shifted from a luxury to a critical requirement in a world increasingly aware of environmental issues.

But according to the findings of a recent report , the higher costs associated with sustainable travel options are a major obstacle to the widespread adoption of environmentally friendly business travel practices.

Although the initial cost of adopting sustainable measures might seem steep, organisations need to consider the long-term importance of sustainable travel to remain relevant in a competitive economic landscape.

Research indicates that 53 percent of employees would prefer to work for companies that actively support sustainable travel initiatives over those that do not.

In line with National Clean Air Month, this article will outline the most effective strategy to help future leaders manage their eco-friendly travel expenses and build sustainable business travel programmes.

Define the reasons for travel and frequency

The first step is to outline the objectives of business travel. Employees often need to travel for various business purposes, such as attending in-person client meetings, conferences or training sessions.

Nevertheless, excess corporate travel is likely to conflict with sustainability goals. Therefore, it’s crucial businesses pinpoint what constitutes essential travel.

Implementing a system to capture and categorise reason codes for each business trip will help identify trends where travel is unnecessary in favour of virtual alternatives.

In taking a more strategic, purposeful approach to business travel, organisations can reduce unnecessary expenses, minimise their environmental footprint and ensure face-to-face interactions are reserved for situations where they add the most value.

Create a clear travel expense policy

Effective management of business travel expenses also significantly enhances a company’s sustainability profile. However, a key challenge is that one-fifth of expense managers fail to ensure employees adhere to their company’s travel expense policy.

Ensuring that expense policies are communicated clearly and are readily accessible via the company intranet or during dedicated meetings can improve compliance and cost efficiency.

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Implementing and utilising robust travel expense management software provides real-time dashboards to monitor expenditures across various departments and projects. This helps businesses analyse trends, set realistic budgets based on past spending, and identify peak seasons which typically incur higher costs.

Organising expenses into foundational categories such as air travel, accommodations, and meals not only streamlines the prediction and management of budgets but also facilitates a more sustainable approach by identifying areas where environmentally friendly options can be integrated.

Encouraging the use of vetted travel vendors and integrating both online and offline booking options ensures safer, more cost-effective travel arrangements. These practices not only optimise expense management but support the implementation of greener travel policies, reducing a company’s carbon footprint and promoting a sustainable business model.

Make policies greener and more sustainable

Policies also serve as a crucial tool to educate travellers about effective methods for reducing the environmental impact of their journeys. Often simply equipping travellers with the necessary tools, information, and expertise allows them to foster more sustainable travel practices. Implementing policies is not costly, yet provides practical, cost-effective strategies for minimising the carbon footprint associated with business travel.

To lower carbon emissions these policies should advocate for choosing trains or electric vehicles over planes, favouring fewer but longer trips and selecting accommodations with genuine sustainability accreditations . Examples to look out for when hospitality and other service providers include the Green Key certificate , the ISO 14001 accreditation and the EU Ecolabel .

To make this an efficient process, travel management companies (TMCs) can help as they have the experience and expertise to build comprehensive and personalised travel policies tailored to empower travellers to make more sustainable choices at the point of booking while minimising costs where possible.

Leverage technology and sustainability-driven partnerships

Implementing the right tools and technology can help quantify the environmental impact of business travel and can assist in evaluating the ROI from an environmental and cost perspective.

Online platforms streamline this process and offer innovative solutions for real-time carbon footprint data tracking and carbon emission projections of future business travel programmes. These platforms also keep a carbon record of all past business travel, helpful in sustainability and CO2 reporting.

By partnering with experts in curating ‘green travel’, businesses can introduce accurate approval mechanisms dependent on CO2 emissions for planned trips and navigate additional costs effectively, not only achieving sustainable ROI but also staying ahead in the race for top talent and a greener, more responsible future.

Partnering with hotels, service providers and airlines that prioritise sustainability practices is an effective way to ensure that business travel is promoting greener travel options. Plus, nurturing these relationships can open doors for better pricing and cost-saving options.

Furthermore, negotiating corporate rates with preferred service providers and utilising reward schemes are effective strategies for reducing costs while promoting sustainability.

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