travel expenses letter sample

Sample Letter Requesting Reimbursement of Expenses

In this article, I’ll share my step-by-step guide on writing a compelling letter for expense reimbursement, peppered with insights from my own experiences and a customizable template to get you started.

Key Takeaways Purpose : Understand the essence of why you’re writing a reimbursement letter. Structure : Learn the standard format of a reimbursement letter. Content : Know what details to include for a clear and concise request. Tone : Maintain professionalism while being assertive. Template : Use our template to streamline your writing process. Personal Tips : Benefit from my real-life experiences to enhance your letter.

Step 1: Understand the Purpose

The first step in writing a reimbursement letter is to understand its purpose clearly. You’re not just asking for money back; you’re presenting a case why these expenses are valid and should be reimbursed by the company or organization.

Step 2: Gather Your Documents

Before you start writing, gather all relevant receipts, invoices, and any other documents that support your claim. This will not only help you articulate your request more clearly but also provide necessary evidence to facilitate the reimbursement process.

Step 3: Start with a Professional Format

Your letter should follow a standard business letter format:

• Date : Include the current date at the top.
• Recipient Information : Add the name, position, company, and address of the recipient.
• Salutation : Use a formal greeting, like “Dear Mr./Ms. [Last Name],”.

Step 4: Clearly State Your Request

In the opening paragraph, get straight to the point. Clearly state that you are requesting reimbursement for expenses, specifying the relevant event or activity.

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“Dear Ms. Smith, I am writing to request reimbursement for expenses incurred during the recent business trip to New York.”

Step 5: Detail Your Expenses

List each expense, providing details such as the date, the amount, the purpose, and how it relates to your role or the business activity. Being transparent and detailed builds trust and eases the approval process.

Example Table:

Step 6: include supporting documents.

Mention that you’ve attached receipts or other supporting documents. This not only substantiates your claims but also demonstrates your diligence and attention to detail.

Step 7: Express Gratitude and Availability

Thank the recipient for considering your request. Indicate that you are available to discuss the details or provide further information if necessary.

Step 8: Close the Letter Professionally

End with a courteous closing, such as “Sincerely,” followed by your name and contact information.

Step 9: Proofread and Attach Documents

Before sending, double-check your letter for any errors and attach all the relevant documents.

Personal Tips from Experience

• Be Timely : Submit your reimbursement request promptly. Delaying can complicate the process and reduce the urgency of your request.
• Be Precise : Avoid vague language. The clearer your request, the smoother the process.
• Follow Up : If you don’t hear back within a reasonable time, a polite follow-up can expedite the process.

Template for Reimbursement of Expenses Letter

[Your Name] [Your Position] [Your Company] [Date]

[Recipient’s Name] [Recipient’s Position] [Company Name]

Dear [Recipient’s Name],

I am writing to request reimbursement for business-related expenses incurred on [Date/Event]. Below is a detailed breakdown of the expenses:

[Insert detailed table of expenses]

I have attached all the relevant receipts and documentation to support these claims. I believe these expenses are in alignment with the company’s policies and are crucial for the [specific purpose/business activity].

Thank you for your attention to this matter. I am available to discuss any of these expenses in more detail if needed.

Sincerely, [Your Name] [Your Contact Information]

Frequently Asked Questions (FAQs)

Q: how do i write a compelling letter requesting reimbursement for travel expenses .

Answer : When I crafted my letter for travel expense reimbursement, I focused on being clear and concise, outlining each cost with attached receipts. I emphasized the business nature of the expenses, ensuring there was no ambiguity about the necessity of each item for the trip.

Q: What should I include in a reimbursement letter for conference expenses?

Answer : In my reimbursement letter for conference expenses, I made sure to list all the costs, such as registration fees and accommodation, providing detailed descriptions and attaching all the relevant receipts. I also highlighted how attending the conference benefited the company to underline the value of the investment.

Q: How can I ensure my reimbursement request for training materials is accepted? 

Answer : I always ensure that my request letters for training material reimbursements are backed with a clear explanation of how the materials are essential for my job role. Including a brief summary of the content and its relevance to my duties made my requests more convincing.

Q: What is the best way to approach a reimbursement request for medical expenses? 

Answer : When I submitted my letter for medical expense reimbursement, I detailed the circumstances that necessitated the medical attention, ensuring the link to my work was clear. Providing complete documentation and a clear summary of each expense, along with their necessity, was crucial.

Q: Can I ask for reimbursement for a work-related meal with a client?

Answer : In my experience, requesting reimbursement for a work-related meal involves not just submitting the receipt but also explaining the context of the meal, who attended, and the business purpose it served. This clarity helped establish the legitimacy of the expense.

Q: How do I handle a delayed response to my expense reimbursement request? 

Answer : When I faced delays in my reimbursement request, I followed up with a polite email, reiterating the importance of the reimbursement for my financial planning. Including a gentle reminder of the submission date and the company’s policy on reimbursement timelines proved effective.

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Mar 1, 2023

How to write a reimbursement email with 7 samples and template

Whatever your expense, this guide to reimbursement emails will ensure you're never short-changed or out of pocket.

Lawrie Jones

Table of contents

Reimbursement emails are professional correspondence to ensure you get paid for outgoings and expenses.

For example, you may have incurred costs for everyday expenses, run up medical bills, or be asking for a payout for lost or damaged items. Whatever your expense, our guide to reimbursement emails will ensure you're never short-changed or out of pocket.

Every reimbursement email must be clear about your costs, what they're for, and how you want to get paid. We can show you how to write an effective reimbursement email, including the correct format, suitable subject lines, and several samples to help you.

So stop waiting for the cash, and let's start writing...

How to write a reimbursement email

Reimbursement emails are formal emails that you'll write to get paid for expenses you’ve run up. The first lesson is, you must be clear and concise in every request for reimbursement. This isn’t the time to beat around the bush or go light on the details.

Firstly, start with an introduction about who you are and why you're getting in touch. Of course, this will differ if you're an internal team member or from the outside, but it always pays to be positive!

You'll want to justify why you're due a reimbursement. Basically, you have to be clear about what you are asking for repayment for any why. You'll also need to prove your expenses by providing all the necessary details and documentation.

Reimbursement email format

Reimbursement emails are based on a format that should be familiar to anyone in business. It's all based on three core parts: the subject line, body copy, and sign-off.

Remember to include attachments of relevant documentation, including invoices and receipts!

1. Reimbursement email subject line

We kick off with a professional and formal subject line. You want to ensure that it's clear and relevant to the request but also that it's attention-grabbing.

Why? Because reimbursement requests are easy to ignore. Don't give them a chance by ensuring your subject line stands out.

• Reimbursement request – (add details)
• Reimbursement claim attached – date
• Request for payment – (add details)
• Expenses attached – please confirm receipt

2. Reimbursement email body

Reimbursement emails are pretty simple to crack. You'll start by introducing yourself , explaining the purpose of your message, and providing any relevant background.

• My name is (your name), and I'm contacting you from (where you're from). I'm emailing you to request reimbursement for (include details).

Next, list out what you're asking to be paid for. Your request for reimbursement should be explicit and document everything. Use bullet points in your request for reimbursement to include all the details to make payment as simple as possible.

• I'm requesting reimbursement for the following:
• Include details...

You should add some relevant background to your message to provide context. This can act as a justification for reimbursement.

• The expenses were incurred while I worked for you on (insert details of costs).

You can expect anyone to pay out without proof, so always provide attachments, including all relevant documentation. You can attach copies of receipts and anything else required to process your payment.

You can end your reimbursement emails here or add a clear call to action and potentially a deadline.

• I have attached copies of my receipts to this email. I understand your payment terms are 28 days. Can you confirm that this is correct?

3. How to end reimbursement email

As a piece of professional business correspondence, you'll need a professional closing (here are 40 more) ! We always recommend adding a polite thank you before providing the following steps to ensure your expenses are reimbursed.

• Please confirm that you have received this message and provide details of when I can expect payment.

It's essential to add contact details so the recipient can clarify any details and confirm your payment.

• You can reach me at (insert details) if you need to contact me.

Finish with a suitable sign-off (kind regards, many thanks, etc.), and you're ready to send.

7 reimbursement email examples

We all love the theory, but sometimes you must see some examples to understand how it fits together.

So here we provide 7 reimbursement email examples that focus on using clear and concise language to get your cash!

Of course, we strike the right professional tone – friendly but formal. We've also provided spaces to slot in relevant details and tag receipts.

Ready to go? Here are reimbursement emails we can all use to make getting paid a priority!

1. Asking for reimbursement email sample

This simple reimbursement sample does everything we've outlined above (in some style!). We start by saying hi and following up with some introduction and background before laying out our request for reimbursement.

Next, we provide details of all expenses and, naturally, highlight the attachments of relevant documentation. Finally, we conclude with a clear call to action.

If you need one reimbursement sample that can do it all, it's this one.

• You can list your expenses here...

2. Sample email for reimbursement of travel expenses

Travel expenses are a common cause for a reimbursement email, so keep this sample ready for when it's required.

When it comes to expense reimbursement emails, include all details (dates, times, and travel methods) to make it as easy as possible for your claim to be paid. (It's worth checking out your company's rules on reimbursement before submitting a claim to ensure you include everything you need.)

Being as straightforward as possible is the most effective strategy for securing your reimbursement.

3. Sample email for reimbursement of travel expenses for the interview

Not all businesses will pay expenses for an interview, but if this one does – be sure to claim it!

You're not going to be familiar to the company, so you'll need to include lots of proof. Include dates, times, and details of the interview – and even consider copying the recruiting manager into your email.

Then, follow all the advice above, including stating who you are, why you're messaging, and the purpose (getting paid!).

OK, so you may not get the job – but with our interview expenses reimbursement template, you'll get your travel expenses back at least!

• You may want to call to share your bank details, but you have the option!

4. Reimbursement request email for lost or damaged items

Requesting reimbursement for lost or damaged items isn't easy. You need to prove you owned the items, describe the loss or damage, and push for payment.

In this example, we're claiming for damage to a phone. We include the contract as proof of purchase and images of the damage. We mention the insurance policy we have and our preferred method of compensation.

Be prepared to answer questions and offer more information, but keep going!

• Bullet points are a helpful way to provide lots of detail.

5. Sample email for reimbursement of medical expenses

Claiming repayment for medical expenses is familiar to our US cousins, and there are strict rules. Start by providing details of your insurance policy and coverage.

Next, you'll need to make a clear request for reimbursement and provide details of all medical expenses. Including receipts and details of all parties involved is critical to ensure rapid repayment.

Get well soon!

6. Request for reimbursement of advance payment email

In some cases, such as buying a travel ticket or equipment for work, you may request advance payment.

First, you'll need to provide a clear and convincing claim why you should receive an advance payment.

After this justification, you must confirm the agreement (including what's being paid for, when, and why). Finally, you'll want to set out any conditions for payment.

7. Follow-up email for reimbursement status

Sometimes (sadly) reimbursement emails aren't processed and paid. Often, they can be ignored as they're not usually a priority. If this happens, this follow-up email is for you.

It pays (literally!) to be polite and request the reimbursement status. After that, hit them up with a request for payment confirmation. Finally, request that they send an update and provide you with a deadline for payment.

Expense reimbursement email template

The samples above are great examples of how to create reliable reimbursement emails, but if they don't hit the spot, use this template. This template is entirely customizable, so just cut and paste the bits you need, and bin the rest. Here's how it works...

The template works through each part of the professional and formal format. It begins with some introduction and background, then goes straight in with a request for reimbursement.

Subsequent steps include details of expenses and a justification for reimbursement. We've also added all vital information and attachments, like invoices, receipts, and payment confirmations.

There's a professional closing and a clear call to action!

• Add details

Send reimbursement emails using Flowrite

If you're struggling with writing emails or want to get to inbox zero, Flowrite is your best help.

We developed an artificial intelligence tool that writes your emails for you, like this:

Final words on reimbursement emails

You should be bossing cashback claims by now, but we'll summarise the key tips for effective reimbursement emails.

Understand and follow the format, including introductions, information, and attachments. Always understand the rules around reimbursement, and follow them.

If we're owed money, we tend to get pushy – but we must always stay polite and professional. So focus on striking the right tone and take your time. It will pay off in the end!

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How to Write a Letter Requesting Reimbursement Examples Included

A letter requesting reimbursement is a letter written to repay you for out-of-pocket expenses. When writing reimbursement letters, it is important that you follow the right steps and tick all the appropriate boxes. If a reimbursement letter isn’t written properly, there’s a chance you may be required to write the letter more than once, or worse, do not get reimbursed. 

In this article, we are going to discuss what a reimbursement letter is, everything you need to know to write a reimbursement letter and the types. We’re going to round it up by providing different reimbursement letter samples to help you better understand how to write your own reimbursement letters. 

Without further ado:

What is a Letter Requesting Reimbursement?

A reimbursement letter is a letter written to request compensation for out-of-pocket expenses by an employee. It could also be to request overpayment or refunds. While most reimbursement mainly deals with out-of-pocket expenses, it also cuts across other sections. For instance, there are reimbursements for payments such as insurance, taxes, etc.

Unlike other compensations, one of the perks of reimbursement is that it is not subject to taxation. 

Reimbursements is generally for business expenses, so, before attending to your company’s needs out-of-pocket, ensure to read the company policy on these matters, or simply reach out to your manager or HR to ensure you’ll be reimbursed for your troubles. 

Some of these business-related expenses may include travel-related expenses such as hotels, food, transportation, flights, etc. In some not-so-common cases, your company may even refund you for taking personal development training. This can be anything from getting a degree to a certification course. 

As said earlier, do not assume your company is automatically going to reimburse you for all your business-related expenses. It is always good to have this information beforehand. 

There are different avenues where you’re entitled to receive a reimbursement, such as tax refunds, insurance reimbursements, etc. The difference in most of these cases is that the reimbursements are done automatically. This means there’s usually no need to send any letter reminding the institution of the reimbursement. 

How to Write Payment Received Emails: Samples Included

How to Write Reimbursement Letters

When writing reimbursement letters, you need to take extra caution than you would when writing other professional letters. If not done properly, reimbursement could open a can of worms and lead to disagreement. As such, when writing these kinds of letters, you need to make sure you follow the guidelines to the letter to ensure you’re reimbursed without much hassle.

In this section of this article, we’re going to look at some of the most important guidelines to follow when writing these kinds of letters. 

1. Remember You’re Writing a Professional Letter

When writing a reimbursement letter, you need to remember you’re writing a professional letter. This means it must follow all professional writing etiquette. This includes using the right subject, addressing it with the appropriate honorifics, signing the letter off appropriately, etc. 

2. Your Letter Should Be Straight to The Point

Like all professional letters, reimbursement letters should go straight to the point and not waste time with any unnecessary information. This means you shouldn’t include any information that doesn’t serve the general purpose of the letter. The first paragraph should go straight to the point and explain to your recipient what the letter is all about. 

3. Include All the Appropriate Documents

Reimbursement letters are letters written to ask for repayment of any out-of-pocket expense. This means you’re presenting a case to your company telling them how much you spent and how much you want to be reimbursed. This means your letter should include all the documents that help your case. This should include all the invoices you paid out-of-pocket, all the hotel bills, taxi fees, and anything you spent during the course of the event. 

4. Tally the Experience

You could also decide to take things up a notch by giving a brief description of each receipt you included. This is more important when you’re requesting reimbursement for activities that span through the course of days or weeks. If you’re reimbursed for a one-time event, you do not need to tally your experiences. 

5. Send to The Right Party

Before sending a reimbursement letter, reach out to HR or your manager to find out who’s in a better position to receive your letter. When doing this, also remember to CC or Bcc the appropriate recipients. Doing this saves you the stress of having to send multiple emails and also ensures your reimbursement request gets the attention it deserves and is acted upon swiftly. 

6. State how You’d Like to Receive the Refund 

Before closing the letter, you can decide to include how you’d like to receive the reimbursement. If you feel unsure about this, you could simply ask that the recipient of the letter get back to you on how best to proceed. 

Sample Reimbursement Letters

In this section of this article, we’re going to list out multiple samples of reimbursement letters for various instances to help you write the best reimbursement letters. 

Reimbursement Letter Sample for Waste Charge

Reimbursement letter sample for electricity bill, reimbursement letter sample for expenses incurred on a trip, sample request reimbursement office expense, reimbursement mail to hr.

We have included everything you need to know to write a reimbursement letter in this article. When writing a letter of this kind, it is important to ensure all the necessary receipts are attached to save both you and the receipt from any unnecessary back and forth. Also, ensure that you communicate with the recipient before writing the letter to ensure they expect it.  

About The Author

Jim Blessed

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Letter To Claim Travel Expenses (10 Samples)

In this article, we will learn how to write a letter to claim travel expenses.

When it comes to business trips, many companies pay for all or part of the costs associated with business travel.

When it comes time to claim those expenses, a simple business letter can be a great way to do it.

Here are some tips to help you write the perfect letter to claim travel expenses:

• Send your letter to the business owner or manager who is responsible for reimbursing travel expenses.
• Include your contact information and a short explanation of why you are requesting reimbursement.
• Provide details of the travel expenses including where, when, and what type of travel was required.
• If the expense was not specifically mentioned, ask if the business would consider paying for it.

Let’s dive into some samples.

Letter To Claim Travel Expenses

Here Are Some Samples To Guide You.

I am writing to claim travel expenses I incurred while on business travel. I was in New York City for a business meeting and my travel was partially funded by my company.

The total cost of my travel was $2,000. I was able to deduct $1,500 of the cost of my travel on my federal income tax return this year. I would like to claim the remaining $500 as a travel expense on my 2018 tax return.

Thank you for your time.

[Your Name]

Dear Travel Agent:

I am writing to claim my travel expenses for a recent trip to [destination]. I thoroughly enjoyed my trip and would like to thank you for all the help you provided in arranging it. I was especially impressed with how quickly and easily you were able to get me the best deals on flights, hotels, and rental cars.

I understand that my travel expenses were a bit more than average, but I believe that the high quality of the accommodations and the savings made were well worth the extra expense.

I would be very grateful if you could reimburse me for my travel expenses in the amount of [amount]. Thank you again for all your help in making my trip a success.

I am writing to claim travel expenses I incurred during my travels last year. I took several trips to different parts of the United States and abroad. I incurred expenses such as airfare, hotels, and food.

I believe these expenses were necessary for me to conduct my business and should be treated as deductible expenses. I would like to claim these expenses on my tax return this year. Thank you for your time and consideration.

Dear (Employer),

I am writing to claim my travel expenses for the recent trip I took to (City). I thoroughly enjoyed my time in (City) and found the local attractions and food to be top-notch.

I submitted my travel expenses to my bank and they clearly show that I incurred expenses for this trip. I would like my travel expenses to be reimbursed in full, please. Thank you for your time.

(Your Name)

Dear [Employer],

I am writing to claim my travel expenses for the period of [date] to [destination]. I was a [employee] of [company] during the period of [date] to [date], and during that time I was required to travel to [destination] for [purpose].

As a [employee], it was my responsibility to submit my travel expenses to my employer. The total cost of my travel for the period of [date] to [destination] was [amount]. My employer approved my travel expenses and paid me the total cost of my travel.

I am claiming the cost of my travel as part of my [employment] benefits. I would appreciate if you could process my claim and reimburse me the total cost of my travel.

Letter To Claim Travel Expenses #6

Dear Claimant,

Thank you for your letter of claim for reimbursement of travel expenses. We apologize for the delay in processing your claim. We have received and reviewed your documentation and have determined that you are eligible for reimbursement.

We will process your claim and send you a check within 45 days. We apologize for the inconvenience.

Your Claimant Representative

I am writing to request reimbursement for my travel expenses. I travelled to [location] for [purpose] on [date] and incurred expenses such as airfare, hotels, and food.

I was able to achieve [result] while I was in [location] and believe that my travel was necessary for the purpose of [purpose]. I would like to be reimbursed for my expenses, and would appreciate any help you can provide.

Thank you for your time,

I hope this letter finds you well.

I would like to claim travel expenses that I incurred while on company business. I was in [City] for [Date] and visited [Attraction] and [Location] while I was there. The total cost of my travel was [Amount].

I would like to submit this claim as a reimbursement for my expenses. I understand that this may take some time to process, but I would greatly appreciate it if you could expedite the process. Thank you for your time.

Dear Company,

I am writing to request reimbursement for my travel expenses incurred during my recent trip to [location].

I was traveling for business purposes and was not compensated for my time off work. I was not reimbursed for my airfare, hotel, or other expenses incurred while traveling. I would like to be reimbursed for my expenses in total, including the airfare, hotel, and other related costs.

Thank you for your time and attention to this matter.

Dear (Name of Person Claiming Travel Expenses),

I hope this email finds you well. I am writing to request reimbursement for the expenses I incurred while traveling last month. I am enclosing a copy of my itinerary and receipts to support my claim.

I thoroughly enjoyed my trip and I am grateful for the opportunity to have visited new places. I hope you can find it in your heart to forgive me for the money I spent while away, and to approve my reimbursement. I would be more than happy to answer any questions you may have.

How To Write A Letter To Claim Travel Expenses

You may be wondering if you can write a letter to claim travel expenses you incurred during the year. The answer is yes, and the following seven tips will help you write the best letter possible.

1. Make sure you have all of the necessary information

Before you begin writing your letter, you’ll need to have all of the information you need to support your claim. This includes documentation of your travel expenses, such as receipts, statements, and tickets.

2. Explain why you incurred the expenses

In your letter, be sure to explain why you incurred the expenses. This will help support your claim and make your case more convincing to the IRS.

3. Keep your letter concise

Keep your letter concise and to the point. The IRS is busy, and they don’t want to read long letters that don’t provide them with the information they need.

4. Be clear about your expectations

In your letter, be clear about what you want from the IRS. For example, do you want them to reimburse you completely or just a portion of the expenses?

5. Include documentation of your expenses

Include documentation of your expenses in your letter, including receipts, statements, and tickets. This will help the IRS verify your claims and make sure you’re getting the most compensation you’re entitled to.

6. Follow the IRS’s instructions

The IRS has specific instructions for writing a letter to claim travel expenses. Follow these instructions carefully to make sure your letter is properly formatted and meets the IRS’s standards.

7. Wait for the IRS’s response

Don’t expect the IRS to respond immediately to your letter. They may need time to review your claims and to determine if you’re eligible for reimbursement. In the meantime, be patient and keep track of the IRS’s response.

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Writing a Reimbursement Email – 7 Examples and Templates

• August 14, 2023

Ready to sail the choppy waters of crafting that flawless reimbursement email?

Well, grab your virtual pen (and maybe a pirate hat), because we’re about to dive deep. 

Forget the days of boring templates and yawn drab emails; it’s time to mix a pinch of humor , a dash of expertise, and create an email cocktail that’s both persuasive and delightful.

Whether you’re looking to reclaim travel expenses or those sneaky extra charges, fear not!

This guide is your treasure map. Let’s set sail!

What is Reimbursement?

Reimbursement is a term you might have come across when dealing with expenses, especially if you’ve been in a situation where you’ve had to request reimbursement or send a reimbursement of expenses letter.

Picture this: you’ve traveled for a company event, and now you want to get back the money you spent . You’d write a request for a reimbursement letter or perhaps a more casual reimbursement email to your boss or finance department.

This process means you’re asking the company to cover the costs you’ve incurred – be it for travel, medical bills, or other professional expenses.

It’s like telling your company, “Hey, I’ve got this bill, so can you reimburse me?” And when they agree, it’s them essentially saying, “Sure, here’s your reimbursement for expenses.”

It’s essential, however, to always provide the necessary documentation , like receipts, when asking for reimbursement to ensure the process goes smoothly.

Key Elements of a Reimbursement Letter/Email

When you’re gearing up to send that crucial reimbursement email or letter, you’ll want to ensure you’ve got all the key elements in place. You know, those parts that make the difference between a smooth, quick reimbursement process and a back-and-forth headache.

Here are some essentials you’ll need:

Subject Line

The subject line is like the crow’s nest of our ship – the first thing that’s spotted from a distance. A clear and direct subject line , such as “Request for Travel Expense Reimbursement” or “Medical Expense Claim for October” , ensures your email isn’t lost in the vast ocean of an inbox.

It gives the recipient a heads-up about the content , making sure your email is opened and read.

Recipient's Details

When it comes to your reimbursement letter, addressing the right individual professionally is pivotal. It marks the initial step to ensure your request is both seen and acknowledged.

A little insider tip: always double-check names for the correct spelling . Including official designations can also make a world of difference, adding that extra layer of professionalism. And if you’re leaning towards a digital mode of communication, verifying the email addresses can save you from potential mishaps.

Purpose Statement

Every effective letter has a clear intent , and your reimbursement request is no different. Clearly stating your purpose right from the get-go cuts through any potential confusion and prepares the reader for your request’s specifics .

Here’s a simple pro tip for you: phrases like “I am writing to request reimbursement…” or “This is a formal request for reimbursement…” are your best friends. They’re straightforward , and they work wonders in setting the right tone.

Detailed Breakdown of Expenses

This is the heart of your reimbursement email. Consider it a blueprint of your claim . It’s where you list out the various expenses incurred, ideally in a tabulated format or as a summary.

Including specifics like date, amount, and nature of the expense (e.g., “Hotel Stay on 5th June – $150”) ensures transparency. This breakdown acts as a quick reference, making it easier for the processing team to validate your claims.

Documentation and Proof

Ever heard of the saying, “Seeing is believing” ? It stands true, especially when you’re making a reimbursement claim. Providing concrete evidence of your expenses can turn the tide in your favor. Always retain all your receipts; they’re the backbone of your claim.

For those who prefer the digital route, screenshots or PDFs of transactions come in handy. And if you’re looking for an organized approach, using a standardized reimbursement receipt template is a game-changer.

Total Amount

Now, onto one of the most vital parts: the amount. Clear and transparent communication about the funds you’re seeking not only helps maintain transparency but can also expedite the entire process .

Offering a detailed breakdown of expenses can be invaluable, especially when there are multiple items on the list. Always double-check your figures for accuracy. And a neat trick? Present your totals in both words and numerals—it leaves no room for ambiguity.

A Call to Action

The grand finale of your reimbursement letter should pack a punch. Drawing your letter to a close with a precise expectation of the next steps can be the gentle nudge that spurs quicker action. While you want to be assertive, always remember the golden rule of staying polite.

Phrases like “I kindly request timely processing…” or “I appreciate your prompt attention to this matter…” strike the perfect balance between assertiveness and courtesy.

7 Examples and Templates for Reimbursement Emails

Reimbursements are an essential aspect of professional and personal dealings. With the right approach, you can seamlessly request and receive the funds you’ve spent. Here are detailed insights into various reimbursement situations:

General Reimbursement Letter

There are times when you make expenditures on behalf of the company or someone else. Perhaps you purchased office supplies or paid for a subscription. A General Reimbursement Letter is perfect for these generic situations.

Our sample letter requesting reimbursement of expenses ensures you communicate effectively, outlining the nature of the expense, the total amount, and any relevant documentation. Remember, clarity is key , and with our email template , your request is bound to be straightforward and well-received .

Here’s an email template:

Subject: Request for Reimbursement for [specific expense]

Dear [Recipient’s Name],

I hope this email finds you well. I am writing to request reimbursement for expenses incurred on behalf of the company. The details are as follows:

Date of Purchase: [Date] Item/Service Purchased: [Specific item or service] Total Amount: [Amount] Purpose: [Brief description]

Attached are the receipts and any relevant documentation.

Thank you for your prompt attention to this request.

Warm regards,

[Your Name]

Requesting Travel Expenses

Business trips, training, or corporate meetings often mean travel. Once you return, you’ll want to reclaim the funds spent on flights, accommodation, and other related costs. This is where our template shines.

It’s crafted to address specifics like dates, locations, and the breakdown of expenses. Plus, there’s room to attach receipts or invoices , ensuring transparency and swift processing.

Subject: Reimbursement Request for Travel Expenses

I am reaching out to request reimbursement for travel expenses from my recent trip to [Destination]. Here are the details:

Travel Date: [Starting Date] to [Ending Date] Total Amount: [Amount] Breakdown: [Flight, Hotel, Meals, etc.]

I’ve attached all relevant invoices and receipts.

Thanks for your prompt attention.

Best regards,

Email to Insurance Company

Insurance claims often come with their own set of complexities. Whether you’re dealing with property, health, or vehicle insurance, ensuring you have a well-drafted letter can streamline the process .

Our reimbursement letter for insurance captures all necessary details — policy number, claim amount, and the nature of the claim. Designed to cut through the red tape, this template ensures your claim gets the attention it deserves.

Subject: Claim Request – Policy Number: [Your Policy Number]

Dear [Insurance Company Name],

I am writing to claim reimbursement as per my policy [Policy Number]. Details of my claim are as follows:

Nature of Claim: [e.g., Medical treatment, vehicle repair] Total Amount: [Amount]

Attached are all necessary documents, bills, and proof of the incident.

Looking forward to a swift resolution.

Asking for Additional Charges

Life’s unpredictable. You might encounter unexpected costs, be it in a project, a service, or a purchase. When you need to communicate these extra charges, clarity and tact are crucial .

Our sample email for additional charges does just that, detailing the reasons for the added costs, providing a breakdown, and requesting timely reimbursement . This way, you tackle the situation head-on without any misunderstandings.

Subject: Notification of Additional Charges – [Specific reason]

I’d like to bring to your attention additional charges incurred due to [specific reason]. Here’s the breakdown:

Original Amount: [Amount] Additional Charges: [Amount]

The total amount now stands at [New Total Amount]. Attached are the relevant bills and a detailed explanation.

Thank you for understanding.

Medical Reimbursement

Medical expenses, whether expected or sudden, can be hefty. If you’re part of a health plan or if your workplace offers medical benefits, you’ll need to request a refund of these bills.

With our medical reimbursement templates, you can effectively list out treatments , medicines , and other costs . Accompanied by the right documentation, such as medical receipts and prescriptions, this guide simplifies the daunting process of claiming medical expenses.

Subject: Medical Reimbursement Request

Dear [HR/Insurance Provider’s Name],

I hope this message finds you well. I’m writing to request reimbursement for recent medical expenses.

Treatment Date: [Date] Medical Facility: [Hospital/Clinic Name] Total Amount: [Amount]

Please find attached the medical bills, prescriptions, and any other supporting documents.

Thank you for your prompt attention.

Transportation Costs

Whether you’re commuting for work, attending meetings, or undertaking longer business journeys, transportation can be a significant expense . The transportation email template we offer covers various types of commutes — from daily local travels to longer out-of-town journeys.

By detailing distances, modes of transport, and associated costs, you present a comprehensive claim , making the reimbursement process smooth.

Subject: Request for Transportation Cost Reimbursement

I am writing to request reimbursement for transportation expenses incurred during [specific time period/task]. Here’s a summary:

Total Distance: [X miles/km] Mode of Transport: [Car, Train, etc.] Total Amount: [Amount]

Attached are the travel logs and receipts.

Thanks for your understanding.

Job Interview Travel Reimbursement

It’s always exciting when a company considers you worth flying out for an interview. While it’s a great sign, you shouldn’t be left covering the travel costs.

Our guide on how to ask for travel reimbursement for a job interview ensures you’re polite, clear, and precise . Detail your travel, stay, and even meal costs, so you can focus on acing the interview instead of worrying about the expenses.

Subject: Travel Reimbursement Request Post Interview on [Date]

Dear [HR Name/Interviewer’s Name],

Thank you for the opportunity to interview at [Company Name]. I’m reaching out to request reimbursement for my travel expenses:

Journey Date: [Date] Transport Mode: [Flight, Train, etc.] Total Amount: [Amount]

Attached are all the receipts and relevant documents.

Thank you for facilitating this process.

Potential Challenges in Reimbursement Process

Navigating the reimbursement process isn’t always a breeze. In fact, when you dive into the world of requesting reimbursement, you might stumble upon several potential pitfalls.

Whether you’re drafting a reimbursement email or submitting a detailed reimbursement request letter, being aware of these hurdles can make all the difference. Let’s break down some of the common challenges you might face:

• Incomplete Documentation : Perhaps the biggest hiccup is not having all your receipts or proofs. Without these, it's tough to validate your reimbursement request.
• Delay in Approvals : Sometimes, your reimbursement of expenses letter might get stuck in the bureaucratic maze, leading to frustrating waits.
• Unclear Company Policies : Not every company has a crystal-clear reimbursement policy. This ambiguity can lead to confusion about what's reimbursable and what's not.
• Errors in Submission : A minor oversight, like filling out a wrong date or amount, can hold up the entire process.
• Lost Receipts : It's all too easy to misplace a crucial receipt, making your reimbursement letter for expenses incomplete.
• Change in Rates : Especially with travel, rates might vary. If you're asking for reimbursement of travel expenses, you might face discrepancies between estimated and actual costs.

Remember, while these challenges might seem daunting, being meticulous and organized can help you navigate the reimbursement journey with relative ease. Always double-check your documentation, be patient, and stay proactive in following up on your requests.

Frequently Asked Questions on Reimbursement Emails

Diving into the realm of reimbursement emails, it’s only natural to be brimming with questions. And you’re not alone! Many individuals, just like you, often find themselves pondering the ins and outs of such correspondence.

To help shed some light, let’s tackle a few of the frequently asked questions that might be on your mind:

How long should I wait before following up on a reimbursement email?

While it’s tempting to expect immediate responses, especially when money is involved, patience is key . Typically, it’s courteous to give the recipient about a week to process your reimbursement request letter or email. Remember, there might be several internal processes or checks they have to go through.

However, if you haven’t heard back in a week or two, it’s perfectly okay to send a gentle follow-up email . It’s a balancing act between being assertive about your reimbursement request and understanding potential administrative delays.

Should I include original receipts in my reimbursement email?

This is a common concern when drafting a reimbursement email. Generally, it’s best to attach scanned copies or clear photos of your receipts . This provides proof without risking the loss of the original document.

But always keep the originals safe, as some companies might request to see them later, especially when large amounts are involved or if there’s a discrepancy in the reimbursement of expenses format.

How do I ensure the confidentiality of personal information in reimbursement emails?

When you’re sharing sensitive data, like bank account details or personal expenses, security becomes paramount . Ensure that the recipient’s email address is correct before hitting ‘send’.

Use a secure email platform and avoid sending such details through public Wi-Fi networks. If the information is highly sensitive, consider using encrypted email services or communicate the details through a more secure channel, like a secure company portal or encrypted messaging service .

Key Takeaways on Reimbursement Emails

Navigating the maze of reimbursement emails is more than just crafting a message; it’s about understanding the nuances , anticipating potential challenges, and addressing common queries.

Throughout our deep dive, we uncovered the essential components of a standout reimbursement letter and provided tailored templates for various scenarios , from general expense claims to specific ones like travel or medical reimbursements.

We also delved into potential hiccups in the reimbursement journey, emphasizing the importance of documentation and patience . Moreover, we addressed some burning questions that many face while dealing with such correspondence, offering insights into the ideal wait time for follow-ups and ensuring data confidentiality .

In essence, mastering the art of reimbursement emails boils down to being meticulous, patient, and proactive. And with the knowledge we’ve unpacked, you’re well-equipped to sail through your reimbursement requests with confidence and ease .

So, the next time you find yourself drafting that crucial email, remember these insights and make every word count!

To achieve the best results with email outreach, we recommend using a professional email automation software

13 best cold email platforms rated and compared

Edgar Abong

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• Email Letter to Request Travelling Allowance

Email 1: Request for Travelling Allowance for Business Trip

Subject: Request for Travelling Allowance for Business Trip

Dear [Manager's Name],

I am writing to request for reimbursement of travel expenses incurred during my recent business trip to [destination]. As per the company's policy, employees are eligible for reimbursement of travel expenses when travelling for business purposes.

I have attached the receipts for airfare, hotel accommodation, meals, and transportation for your reference. The total expenses incurred during my trip amount to [amount]. I would appreciate if you could approve my request for reimbursement of these expenses.

Thank you for your attention to this matter.

[Your Name]

Email 2: Request for Travelling Allowance for Job Interview

Subject: Request for Travelling Allowance for Job Interview

Dear [HR Manager's Name],

I am writing to request for reimbursement of travel expenses incurred during my recent job interview for the position of [position] at your company. I appreciate the opportunity to interview for the position, but I had to travel from [location] to [destination] for the interview.

Email 3: Request for Travelling Allowance for Conference

Subject: Request for Travelling Allowance for Conference

I am writing to request for reimbursement of travel expenses incurred during my recent attendance at [conference name] held at [destination]. As per the company's policy, employees are eligible for reimbursement of travel expenses when attending conferences.

Email 4: Request for Travelling Allowance for Training

Subject: Request for Travelling Allowance for Training

I am writing to request for reimbursement of travel expenses incurred during my recent training program at [location]. As per the company's policy, employees are eligible for reimbursement of travel expenses when attending training programs.

Email 5: Request for Travelling Allowance for Sales Visit

Subject: Request for Travelling Allowance for Sales Visit

I am writing to request for reimbursement of travel expenses incurred during my recent sales visit to [customer name] at [location]. As per the company's policy, employees are eligible for reimbursement of travel expenses when visiting customers for sales purposes.

We are delighted to extend our professional proofreading and writing services to cater to all your business and professional requirements, absolutely free of charge at Englishtemplates.com . Should you need any email, letter, or application templates, please do not hesitate to reach out to us at englishtemplates.com. Kindly leave a comment stating your request, and we will ensure to provide the necessary template at the earliest.

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How to Write a Claim Letter: 35+ Free Templates

A claim letter is an official letter that is used to request reimbursement for losses sustained due to poor service, unfinished work, or personal harm. It is frequently written by a client or buyer to express their dissatisfaction with the services or goods acquired and primarily functions as a written notification.

Table of Contents

What Is a Claim Letter

In our daily lives, we frequently ask or demand recompense from people or businesses for subpar services or harm done to persons or property. However, threatening someone to resolve a dispute is unethical. 

Writing an official claim letter to the individual in question would therefore be the proper way to request repayment or a claim arrangement and is also seen as a step in the legal procedure.

What to Include in A Claim Letter

The following elements should be included in a typical claim letter.

Address of the Claimant

The claimant’s address should be the first line of the letter. The street name, city, and zip code should be used to explain your address at the top if you are the one making a claim request.

Mention the date when the letter is being written. The whole date should be expressed as May 9, 2023, or 9 May, 2023. You should not type the date as 09.05.2023

Sender’s address

Mention the defendant’s full address, together with his or her name, any professional titles held, the name of the firm, and the location.

Subject line

Include a subject line after writing from and to address, and briefly describe the kind of claim you want to make.

Salutations

The claim letter has to begin with a greeting, just like every other formal business letter. You can address someone by saying “Dear,” followed by a title and name.

The claim’s goal should be briefly explained in the body, along with all the pertinent information. Never stray from the subject; the writing should be concise. Make paragraph-sized sections of the information for easier reading.

You have two to three paragraphs at most to clarify the stated reason. Remember to express your appreciation to the relevant authorities for their time after the paragraph. The most crucial thing is to offer a sound defense for your claim and the anticipated settlement date.

With terms like “sincerely,” “faithfully,” etc., end the letter. Below that, attach a signature block with your full name and contact details. 

Type “Enclosures:” after the portion of the letter that closes, and then list any supporting documents you want to include. This element is optional.

How to Write a Claim Letter (tips)

Read and abide by the claim letter writing advice given below if you want to set up professional interaction as a claimant.

Be Brief and polite

Even if your problem is significant, while submitting a claim, be courteous and write it with a pleasant attitude. Crispy writing that specifically addresses the issues you are having is required. You can also describe the response you anticipate from your service providers regarding your problem.

Avoid making insulting or threatening remarks.

Forcefully requesting reimbursement wouldn’t be a fair notion, as was previously stated. Giving a concerned individual a nice impression of you by requesting a claim settlement without using sarcastic or threatening language can help you handle your claim issue as quickly as possible.

Don’t express regret. Be adamant in your demand for a fair settlement.

Submit the details and supporting evidence .

Never exacerbate the issue. Maintain simplicity and attach all necessary supporting documents to the letter to expedite the processing of your claim request.

To facilitate the investigative process, be sure to include a thorough account of a scenario together with evidence. With the claim data you are unsure of, you do not need to be too explicit or exact.

Claims Mode

It’s not necessary to file a claim to get the full monetary amount or reimbursement for loss or damage. Depending on your circumstance, there will be several types of claims.

The common claim methods that you might select as a buyer or customer are listed below.

• A whole or in part return of the purchase price
• Replacement for a product or item that is flawed
• Restoration of the harmed products
• the timely and accurate delivery of the ordered goods
• Corrections to the legislation

Key takeaways 

The letter needs to be direct and brief, describing the occurrence in detail and referencing any evidence that would support the allegation. Avoiding accusing or threatening words and maintaining a professional and courteous tone are recommended. Ensure that you follow all the tips listed above for the best claim letter.

Letter Template: 1

Travel Insurance Claim Letter

[Sender’s Name]

[Jib Title]

[Address, Zip Code]

[Recipient’s Name]

[Insurance Company Name]

[Job Title]

Sub- Claiming Travel Insurance.

Dear [Recipient’s Name]

It is to inform you that I, an insurance holder of your insurance company, would like to claim insurance under the terms and conditions of my travel insurance policy. My travel insurance policy number is [Number].

My last trip to [Place] has given me an awful experience. I got badly injured because [Your Reason]. I was admitted to a hospital and was treated there and given medicines for a speedy recovery.

For this treatment, I was changed [Amount]. I have attached the invoice, which contains the date, name of the doctor who treated me, the address of the hospital where I was admitted, the details of my injury, and the receipt of my medication. 

According to the terms and conditions of my travel insurance policy, I am liable for the first [Amount] of any insurance claim. But I want the remaining [Amount] as a result of the costs incurred.

Please settle this claim immediately and contact me for further details.

Download Template : ( pdf, docs, ODT, RTF, txt, HTML, Epub, Etc )

Letter Template: 2

Debt Recovery Claim Letter

Dear [Recipient name]

 I am writing to you about your payment for invoice number (mention number) overdue amount of (mention amount). You have not mentioned any queries about your policy, so we assume that you do not dispute the amount you owe. I have attached a copy of the unpaid invoice.  Please find the attachment.

Unless payment is received from you, I will have to take legal action to recover the money you owe. And this charge some amount, and the amount will be added to the debt.

If you wish, you may look for independent debt advice, which can help you to deal with the problem. We have attached a list of organizations that provide confidential and free advice. You can contact one of them for your dept.

For further information, you can reach us at (mention phone number) or through an email (mention email address). I am looking forward to hearing from you.

[Sender name]

Letter Template: 3

Damaged Good Claim Letter

[Mention designation of recipient]

Respected sir/madam,

I ordered a product from your store on [mention date], and requested that the goods be delivered to me on [mention date]. The product was delivered to me on the mentioned time (mention date), but the goods were damaged from inside, it probably got damaged somewhere before reaching to me. I have attached some photographs of the damaged product. Please find the attachment.

[Describe a little bit about the damaged product.]

I would like to claim a request for an immediate replacement of the received goods, preferably shipped to me in better condition this time. Kindly consider the matter and do the checking correctly before packaging.

Please contact me if you require further details. You can reach me at (mention phone number) or through an email (mention email address).

Letter Template: 4

Refund Claim Letter

I made an order from your store (order number), on [mention date], and the product was delivered to me on [mention date]. The shipment was delivered on the mentioned date and time but the products were different from the main product which I ordered. I took some pictures and enclosed them with the letter for your reference. Please find the attachment.

[Describe a little bit about the ordered product.]

I would like to claim a refund of my placed order. Please look into my matter and resolve my issue.

If you have any further queries, you can reach me at (mention phone number) or through an email (mention email address).

Letter Template: 5

Property Damage Claim Letter

I would like to raise a claim regarding the damage that has recently occurred to my property (mention property number) located at [mention property location] which comes under your policy number (mention number).

Please look into this matter and try to resolve it as soon as possible. Otherwise, it will cause a serious problem for my property.  

The damage happened on [mention date] as a result of [mention cause]. (Describe a little bit about the property damage).

All the necessary documents have been attached to support my claim. Please find the attachment and do the needful.

Kindly acknowledge the receiving of this letter and the processing of the claim. I am looking forward to hearing from you.

Please contact me if you require further documents or information. You can reach me at (mention phone number) or through an email (mention email address).

[Sender Name]

Letter Template: 6

Life Insurance Claim Letter

I am writing this as a beneficiary of the life insurance policy number (mention number). She/he was insured through your company for a sum of (mention amount). She/he passed on (mention date) and I was listed as her/his sole beneficiary. Please check your record and do the needful.

Due to the cost of a funeral and other expenses, I am requesting a payment of her/his insurance policy. Payment should be made to the beneficiary at the address shown on the policy information.

I have attached her/his death certificate and all the documents for your review. Please find the attachment. If you have any further questions, you can reach me anytime at (mention phone number) or through my email address (mention email address). 

It is my request to clear up this matter quickly. If there are any other documents or forms to be filled up or received for this claim, please let me know. I am looking forward to hearing from you as soon as possible.

Letter Template: 7

Personal Injury Claim Letter

Respected Sir/madam,

I am writing this letter to claim for my personal injury. In order to settle this matter immediately, it’s demanded that you make a payment of (mention amount) if something happens in future with me.

As of now, I got injured by a (mention cause) that happened at (mention place) through no fault of mine. My doctors say I’ve reached a level of maximum medical treatment. I still have painful symptoms that may continue into the future, and for this, I have to go through a treatment that costs around (mention amount).

I have decided to bring this matter to a conclusion with a reasonable and equitable settlement of my injury claim. Please look into this matter on an urgent basis.

A breakdown of the demand amount is as follows:

INJURIES/TREATMENT: (mention amount)

OUT-OF-POCKET EXPENSES: (mention amount)

LOST WAGES/EARNINGS: (mention amount)

PAIN AND SUFFERING: (mention amount)

After looking into the issues involved in this claim and a review of jury verdicts and insurance company settlements with similar fact patterns, I believe the total demand amount represents a fair and impartial settlement amount.

Letter Template: 8

Boundary Dispute Claim Letter

 [From]

I  would like to raise a claim regarding a boundary dispute damage that has recently occurred to my property (mention property number) located at [mention property location]. Please look into this matter and try to resolve it as soon as possible. Otherwise, it will cause a serious problem to my property.  

The damage happened on [mention date] as a result of [mention cause]. (Describe a little bit about the dispute).

Letter Template: 9

Data Protection Breach Claim Letter

This letter is a formal notice to discuss a data protection breach by you in the contract you and I signed on (mention date) to clear the debris. In accordance with the contract on (mention date), but it has not been done yet. So, I want to claim my data protection breach.

I have attached all the documents which will be needed to claim this. Please find the attachment for your reference and do the necessary things as soon as possible.  

Contact me as soon as you receive this notice so that we can discuss it. If I do not hear from you by (mention date), I will pursue all legal remedies available. So kindly look into this matter and resolve the issue immediately.

Letter Template: 10

Flight Delay Compensation Claim Letter

Dear Sir/Madam,

I am writing to you in connection with the flight (mention flight details) which I was booked to travel on [date] for going to (mention destination).

The flight was supposed to depart from [mention departure airport] at [mention time] and arrive at [mention arrival airport] at [time], but it was delayed by [mention hours].

Under the Boarding Regulation of terms and conditions, I want to claim compensation from your agency (mention agency name). I am entitled to the sum of [mention amount] in compensation and look forward to receiving the fair and equivalent amount within the next (mention days).

I have attached my booked tickets and all the documents required for verification. Please find the attachment for your reference and look into this matter. I am looking forward to hearing from you.

Thanking you

Letter Template: 11

Breach of Contract Claim Letter

This letter is to inform you of a formal notice to discuss a breach by you in the contract you and I made on (mention date) to clear the detritus on the (mention property size) property at address (mention address). According to the agreement, you agreed to complete the project by (mention date). 

However, one month later (mention date), the property has not been cleaned. The property is not in good condition and is not ready yet. I have enclosed some photographs of the property taken yesterday on (mention date). This is a disappointment from your side to me. Please find the attached file for your reference and do the necessary things as soon as possible.  

Please contact me as soon as you receive this notice, so that we can discuss it. If I don’t get any response from you by (mention date), I will pursue all legal activities. So kindly, look into this matter and resolve the issue immediately.

Letter Template: 12

Judicial Review Claim Letter

I would like to raise a claim regarding a judicial review for my submitted case (mention case details). Please look into this matter and try to get a review for it as soon as possible.  

The case has been filed on [mention date] as a result of [mention cause] at (mention court name). (Describe the case details).

Letter Template: 13

Reimbursement Claim Letter

I am writing this letter to inform you that I have joined back to the office after my official tour to (mention place). I am writing this letter in reference to the reimbursement amount that is due for me to settle down the travel expenses that I made during this trip.

I was on an official trip to (mention lace) for (mention days). The total expenses during this trip were (mention amount) which includes the hotel bill, traveling fare, food expenses, and my traveling tickets. I have enclosed all the required documents for your reference. Please find the attachment.

Kindly look into this matter and clear this amount and add this amount to this month’s salary so that it does not get delayed till next month. Looking forward to a positive response from your side.

Letter Template: 14

Warranty Claim Letter

I purchased a product from your store on (mention date) with the order number (mention number). I made this purchase at [mention location, date, and other important details of the product]. 

Unfortunately, your product has not performed well because [mention about the problem]. The product came with a warranty that if I am not satisfied with the product, I am entitled to receive a full refund of the product.

Therefore, to resolve the problem, I would like to claim a warranted refund for this product. Enclosed are copies of the record of the product. Please find the attachment. 

I look forward to your reply and a resolution to my problem. Please contact me at the (mention address or by phone [mention phone number]. 

Sincerely, 

Letter Template: 15

Insurance Claim Letter

I am writing this letter in regard to my insurance claim (mention detail). My insurance policy number is (mention number). The details of my insurance are mentioned below:

 [Describe your insurance detail]

I would like to inform you that I didn’t get any calls or notice from you regarding my insurance in spite of my reminders during the last (mention days).

 All the required documents have been attached; please find the attachment for your reference. Please look into the matter and oblige. 

Letter Template: 16

Compensation Claim Letter

I am writing this letter in regard to my compensation claim for (mention detail). My compensation policy number is (mention number). The details of my compensation are mentioned below:

 [Describe your compensation detail]

I would like to inform you that I haven’t gotten notifications or calls from you regarding my compensation in spite of my reminders during the last (mention days).

Letter Template: 17

Death Benefit Claim Letter

Sub: Letter to Claim the Death Benefit

Respected sir/madam

I am writing this as a beneficiary of the life insurance policy number (mention number). She/he was insured through your company for a (mention amount). The insurance she/he will get after his/her death. 

She/he passed on (mention date), and I was listed as her/his sole beneficiary. Please check your record and do the needful.

Due to the funeral and other necessary expenses, I want the payment to be made as soon as possible. Payment should be made to the beneficiary at the address shown on the policy information.

It is my request to clear up this matter as soon as possible. If any other forms or documentation need to be signed or received for this claim, please let me know. I am looking forward to hearing from you soon.

Letter Template: 18

Bank Guarantee Claim Letter

Sub: Letter to Claim Bank Guarantee

I am writing this letter in regard to my claim for my bank guarantee. My policy number is (mention number), and I want a grant for my policy. The details of my policy are mentioned below:

 [Describe your bank guarantee detail].

I would like to inform you that I am an employee of this bank. So, I need a proper grantee for my policy. And I request you please try to get my policy grant as fast as possible.

All the required documents have been attached; please find the attachment for your reference. Please look into the matter. I am looking forward to a quick response.

Letter Template: 19

Earning Loss Claim Letter

Sub: Letter of Claim to Loss of Earnings

I am writing this letter in regard to my claim for my loss of earnings. From the time of my injury on (mention date), I missed (mention days/hours) from work as a result of my injuries.

My wage rate on the date of injury was (mention amount). My wage rate increased to (mention amount) from (mention amount) after my treatment.

In addition, my overtime amount was (mention amount) per hour on the date of the injury. I also missed (mention days/hours) of overtime from the date of injury to the present date totaling (mention amount).

As, of the date of this statement, lost wages are (mention total amount). All the files have been attached for your reference. Kindly find the attachment and do the needful for me. 

Thanking you, I am looking forward to hearing from you.

Letter Template: 20

Medical Reimbursement Claim Letter

Sub: Letter of Claim Medical Reimbursement

I am writing this letter to inform you that I have re-joined the office after my medical leave (mention cause). I am writing this letter is in reference to the re-imbursement amount that is due for me, to settle down the expenses that I made during my treatment.

I was on leave for medical treatment for (mention days ) at (mention hospital name). The total expenses during the treatment were (mention amount), which comprises of the hospital Bill, Taxi fare, medical expenses, and my treatment.

I have attached the necessary documents, like all the bills, the completed reimbursement form, and an Official letter for the treatment for your reference. Please find the attachment.

Kindly look into this matter and clear this amount and add this amount to my month’s salary so that it does not get delayed till next month. Looking forward for a positive response.

Letter Template: 21

Maternity Benefit Claim Letter

Sub: Letter of Claim Maternity Benefit

I am writing this letter to inform you that I have re-joined the office after my maternity. I am writing this letter is in reference to the reimbursement amount that is due for me, to settle down the expenses that I made during my maternity leave.

I was on leave for my maternity for (mention days). The total expenses during the leave were (mention amount), which comprises of my un-presentment at the office. I have attached the necessary to complete the reimbursement form, Official letter for my maternity leave for your reference. Please find the attachment.

Letter Template: 22

Pension Claim Letter

Sub: Letter to Claim Pension

With due respect, I (mention your name) wanted to inform you that I have been working for (mention Company/Institute name) for (mention years) as (mention Job designation). Now, I have been retired upon reaching the maximum age limit of 60 years. Throughout my service, I have proved to be a hardworking and dedicated employee.

My salary was my only source of income and now I am facing difficulties to bear my expenses after my retirement.

I want to claim my pension (mention the condition and situation).

Therefore, I request you to release my pension from the (mention Company/Institute name) pension fund as early as possible so that I can take care of my necessities. All the documents have been attached as per requirement. Please find the attachment. I am looking forward to hearing from you soon.

Yours faithfully,

Letter Template: 23

Security Deposit Claim Letter

Sub: Letter to Claim Security Deposit

I wanted to claim my security deposit refunds. As per our agreement until (mention date), I resided in an Apartment (mention complex name) and regularly have paid my rent to your office. When I moved out, after giving you 30 days prior written notice, I left the apartment cleaner than it was when I moved in. 

Till now, I have received neither my security deposit nor any accounting from that money. You are now over a week late returning my deposit. Please look into this matter. I have attached all the necessary documents for your reference. Please find the attachment and do the needful.

If you have any questions, please contact me at (mention phone number) or through an email (mention email address). I am looking forward to your response.

Letter Template: 24

Retirement Benefit Claim Letter

I wanted to inform you that I have been working for (mention Company/Institute name) for (mention years) as (mention Job designation). Now, I have been retired upon reaching the maximum age limit. Throughout my service years, I have proved myself to be a hardworking and dedicated employee. My salary was my only source of income and now I am facing difficulties to bear my expenses after my retirement.

I won’t claim my retirement benefits (mention the condition and situation).

I, therefore, request you to release my retirement benefits from the (mention Company/Institute name) as early as possible so that I can take care of my expenses. All the documents have been attached as per requirement. Please find the attachment. 

I am looking forward to hear from you soon.

Template: 25

Claim Welfare Benefits Letter

Your Address

Street, City, State

[Mention the name]

[Mention the address]

City, State, Zip-Code

Subject- Letter to Claim Welfare Benefits

Dear Sir/Madam

I am writing this letter to claim some welfare benefits as a working employee of your esteemed company. I am working in the department of [ department details ] of your company and I receive a salary of [mention the salary], per month.

But, these days of exceeding expenses I would be obliged if your company provided me some welfare benefits.

I am all alone and living in a rented house. Thus it will very beneficial to me if you can provide some housing facility for me. It will reduce my expenses, and this, in turn, will help me in various other ways.

As an employee of this company, I will surely aim to increase my productivity if you fulfill my basic claim as an employee. 

I hope you will pay some heed to my request. I will wait for your quick response. Thanking you in anticipation

Yours Sincerely,

[Name of the sender]

[Designation of the sender]

Letter Template: 26

Defamation Claim Letter

Sub: Letter of Claim Defamation

I am writing this letter to claim for defamation under the act (mention act) for (mention cause).

[Describe about your reason]

I would like to inform you that I want compensation for the defamation from the authority. I have enclosed the entire itemized list below (mention list).  I, therefore, ask you to review my case.

 All the required documents have been attached; please find the attachment for your reference. I look forward to your reply, and I expect to hear from you within the next (mention days). Kindly look into the matter and oblige. 

Letter Template: 27

Unpaid Salary Claim Letter

Subject- Letter to Unpaid Claim Salary

I am writing this letter to claim my due salary. I am an employee working with your company, in the department of [mention the department]. I received my last salary on the date of [mention the date]. It’s been two working months that I have not received my due salary.

I can understand that the company is going through tougher days, but now I need money. As an employee, I have shown my patience, but my needs make me impatient. I am the only working member of my family, and this salary suffices for our daily needs.

My due salary for two months counts to [mention the amount], and I expect the complete payment of the same.

I will be obliged if we, please pay attention to my plight. I need the money, and my salary is due right? I will wait for your quick reply without much delay. Thanking you in anticipation.

Letter Template: 28

Travel Expenses Claim Letter

City, State, Zip-code

Subject- Letter to Claim Travel Expenses

I am writing this letter to claim the travel expenses that I incurred on the official tour. I am [name of the person], working in [name of the department]. I was sent for the official tour to Texas, and it’s been a week since I joined the regular back office after the tour.

I accompanied my project head, [mention the name], and two other team members [mention the names]. I was on this official tour from [mention the date] to [mention the date]. I expect the payment of our expenses for the airplane tickets, hotel stay, and food, at least. I can provide the expense bills if needed. 

The tour was indeed expensive, and I hope my request will be granted. I would appreciate your efforts. Thanking you in anticipation. 

Letter Template: 29

Dividend Claim Letter

Subject- Letter to Claim Dividend

I am writing this letter to claim my due dividend as a shareholder of your company. It’s been two months and I have not received my due pay and this seems quite undesirable. I request you to pay my dividend before I take some judicial action.

We can also arrange a meeting in case of any arising issues. The amount totals to [mention the amount] and I would appreciate the full payment of the dividend.

I will be obliged if you pay attention to my rightful claim. I will wait for your quick response. Thanking you in anticipation.

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10 travel & expense policy samples, templates & resources

Published on January 14, 2023

So it's time to write your company's expense policy. And either you have no idea where to start, or you've done this before and you just want to make sure that you hit all the important points.

Either way, we've got you covered. We've pulled together a handful of useful templates that you can copy directly. And perhaps more useful are the seven real-world expense policies from companies and institutions you've heard of.

See how each approaches its travel and expense requirements differently, and what they each expect from employees. Then use these insights to write a successful policy that team members actually use .

Let’s begin with a collection of ready-to-copy templates to help you create your company expense policy.

Disclaimer : The real expense policy examples below were easily found online and not provided by the businesses themselves. They are to be used for the purposes of comparison and inspiration, and Spendesk will happily remove them from this post if requested.

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Real travel & expense policy samples.

We’ll share hands-on, ready-to-use policy templates shortly. But perhaps more valuable is to see the real travel and expense policies successful companies use .

We’ve pulled out the most noteworthy aspects of each below, and you can click the links to see them in full. Read through a few and decide which company’s approach best matches your own philosophy . It’s always nice to know that there are thriving, famous institutions that think the same way you do.

You don’t need a link to see the full Netflix expense policy - it only contains five words:

“ Act in Netflix’s best interests. ”

For obvious reasons, this has become famous. And it matches Netflix’s overall culture code, which includes a full section on Freedom and responsibility . It’s a fascinating document, including a few highlights:

Our vacation policy is “take vacation .” We don’t have any rules or forms around how many weeks per year. Our leaders make sure they set good examples by taking vacations, often coming back with fresh ideas, and encourage the rest of the team to do the same.

Our parental leave policy is: “ take care of your baby and yourself .” New parents generally take 4-8 months.

Each employee chooses each year how much of their compensation they want in salary versus stock options . You can choose all cash, all options, or whatever combination suits you.

If that sounds like the kind of company you’re building - and you’re willing to back it up - then perhaps the Netflix approach is right for you.

Basecamp’s expense policy is not quite as simple as Netflix’s, but displays a similar ethic. We don’t have the full policy itself, but rather a set of key benefits given to Basecamp employees. These were shared by CEO Jason Fried in a 2016 blog post.

The most important aspect shared is the company’s “no-red-tape business account.” Every employee gets their own American Express card. There’s no need to ask for approval for transactions - just be reasonable.

Which is clearly a highly trusting approach to managing spending. But if you plan to replicate this, you’ll still need to ensure you have a clear process for documenting transactions - otherwise your finance team will be forever in the dark.

Because this post is full of fascinating nuggets, we’d better share a few more:

Employees receive a $100/month massage allowance.

They also receive $100/month towards their gym, yoga studio, or fitness pursuit of choice.

Employees can work from anywhere in the world. “Move cities, keep your job.”

There’s plenty more to read in there. It may not be the exact expense policy that employees use when spending, but it’s fascinating just the same.

In a word: classic. The document is comprehensive and contains all the main expense categories and key pieces of information you’d expect to find. It’s a good example of a more prescriptive (but still easy to follow) policy .

Here are a few highlights:

The BBC has a written sustainable travel policy , and explicitly requires staff to use public transport where possible.

There are specific rules governing “ late night/early morning transport ” (LNEMT), which makes sense given the operating hours of its radio and television channels.

Employees may claim interest incurred on personal credit cards if reimbursement from the BBC was late and this was the reason for the interest.

There are a huge range of incredibly specific rules in this document. Which makes for a very interesting read.

Allowances for things like food, accommodation, and mileage follow HMRC’s recommendations, as you’d expect. Read our detailed explanation of HMRC’s travel expense rules .

Note : This is an older document - last updated in 2015. So it’s possible that it’s no longer 100% up to date. But nonetheless, it’s worth looking through it to see what inspiration you can draw.

As an enormous international company, it’s probably not surprising that FedEd’s policy reads like a legal document more than a set of guidelines . The company likely feels that can’t afford to be unclear about its rules, and has been quite exhaustive in stating what’s permitted.

It’s up to you whether this matches your own philosophy. At Spendesk, we prefer overarching guidelines to prescriptive rulebooks. This suits us better.

Here are some noteworthy sections of FedEx’s travel and expense policy:

The first page of the policy explicitly states that “termination” is a possibility if employees don’t follow the policy . Which makes sense, but isn't always spelled out in a simple policy document.

Expense reports should be submitted on a weekly or per-trip basis . The latter is quite standard, but submitting reports weekly can easily put a huge burden on both travelling employees and finance teams.

Team members are expected to keep all of their receipts for 12 months . This has likely been updated with more companies using e-receipts these days. If not, that’s quite a tall order.

Vice Presidents and above are permitted to travel first class , while other employees are expected to fly coach (economy). For flights longer than six hours, business class may be allowed.

Because this travel policy is so detailed, there’s plenty more of interest to explore.

Bank of England

Similar to FedEx’s, Bank of England’s policy and long and detailed. Similar to the BBC, Bank of England is a public entity and therefore takes fiscal responsibility seriously.

The policy begins by setting out two clear operating principles :

The value-for-money principle : because the bank is accountable to Parliament and the public, it needs to take good care of spending.

The integrity principle : “we should not be influenced by the prospect of personal advantage or gain. We must use the Bank’s resources responsibly for the public good, not to profit personally.”

While quite exhaustive, this policy does read as though written by those with the best interests of both employees and the institution at heart. The language is clear and easy to understand , and many of the ideas are based on what’s good for the individual.

For example, “wellbeing is also important. Travelling long distances and being away from family and friends has a cost. The Bank wants staff to be able to perform at their best when travelling for work.”

This shows that, even if long and quite technical, a good expense policy can also show the care with which a company treats its team .

Dartmouth College

Dartmouth’s travel and expense policy is one of the more legal and technical policies we’ll see. It’s written more like a piece of legislation than a “clear and simple” playbook . Whether that suits your business is your own call, but it probably makes it more difficult to follow for employees.

On the other hand, it’s very comprehensive . And we might imagine that Dartmouth employees are naturally more used to technical and academic writing than the average company employee.

Similar to others we’ve seen above, the document sets out a list of non-allowable expenses, which is important if you want your policy to be exhaustive. It also states clearly the likely penalties if the policy isn’t followed properly.

It’s also worth examining the procurement section near the beginning of the policy . If your business handles lots of high-value purchases, you may be interested in the rules set out by Dartmouth.

Victoria University of Wellington

We can compare Dartmouth’s policy with another academic institute: Victoria University. Similarly, this policy is formulated like a legal document, setting out very clearly what’s permitted and what isn’t.

Despite this, it’s fairly easy to understand and is only 9 real pages of text . Which compared with some others isn’t too daunting.

A few things worth noting:

All University travel should be economy class , with a few narrow exceptions. These exceptions are not related to job description.

For meals, mileage, parking fees, and other on-the-road travel expenses, the University doesn’t state a fixed amount covered . Instead, it will cover “all ordinary, necessary and reasonable expenses required for the individual to undertake approved University travel.”

The second page sets out the ethical framework upon which the whole document was written .

Expense policy templates

Putting an expense policy together is often a long, drawn out process. You need buy-in from different teams, managers, and executive leadership, to ensure you’ve covered all your bases.

And even then, there’s no guarantee that everyone will read and appreciate your hard work. Expense policies are regularly overlooked or ignored , and many employees prefer to do things their own way.

Which is frustrating, of course.

Given this, it doesn’t make sense to devote hours and hours to writing it from scratch. Instead, take one of these templates and tailor it to your own company’s needs .

This is a very clear and easy to understand expense policy , written in plain English (which is always important). It can be downloaded in DOC format, with spaces for you to fill in managers’ names, points-of-contact, and any other important information.

You know, a template.

And a very good one at that. If you simply want a plug-and-play expense policy that you can get live in a hurry, this is the perfect place to start.

Corporate Traveller

This PDF from Corporate Traveller isn’t exactly a copy/paste template like the two above. But it includes the firm’s recommended top 10 elements to include in your own policy.

Some of these don’t feature in our other listed templates, but may be good ideas. For example, “traveller profile forms” which ask frequent travellers for information to the company which might help in an emergency. This isn’t rocket science, but it’s the sort of thing that you might easily forget.

This template is specifically for employee expense reimbursements . We always advise you avoid expense claims , but since most companies still rely on them on some form, it’s a good idea to make sure the rules are clearly stipulated.

Further resources

If all the above isn’t enough information and inspiration to draft a winning expense policy, here are two more excellent resources that give you principles and foundations to build upon.

Expense policy 101: understanding the basics

Company expense policy: a guide for modern businesses

Spend management guide for growing businesses

Create the perfect T&E policy with help from others

As we've seen, there's plenty of inspiration available for finance leaders and managers to craft a winning travel and expense policy. It doesn't have to be a chore.

And on top of the excellent examples we've shared, get help from the people around you. A good expense policy isn't simply a top-down affair. If other team members have input - not just your finance team - you can be confident that your policy will reflect what's best for the whole company.

In the end, it's about writing something that people will actually follow . More often than not, that means a simple, clear, and concise travel and expense policy.

And even better, it might mean a policy that's built into the tools your teams use every day. That's how it works here at Spendesk, and we'd love to help you achieve the same outcome:

More reads on Expense management

Enhanced reporting requirements 2024: key advice for Irish businesses

VAT recovery: how to automate this tedious process

5 tips to process expense reports efficiently

Get started with spendesk.

Close the books 4x faster , collect over 95% of receipts on time , and get 100% visibility over company spending.

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Letter for Claiming Travel Expenses

Sample letter to claim travel expenses from office, manager, director, school, govt office, or wherever you are working.

The District Officer, Scottish Fire Service.

Kindly refer to the subject as cited above, it is submitted that undersigned has made visit to London in compliance of your order for the purpose of resolving managerial issues in the office of Scottish Fire Service in London. In this context, undersigned made visits by air, and then on metro train.

Therefore, you are requested to please recommend my application for claiming travel expenses to the headquarters for its final approval.  My travel tickets , and other receipts are attached herewith.

Thanking You,

Operation Manager Scottish Fire Service.

Letter Format for Claiming Travel Expenses

Miss Lisa, Accounts Manager, Zero Co. Inc.

Dear Madam,

It is to request you that Mr. James, the Manager Supplies, and two of his team mates, Jacob Arnold, and Andrew Steve had gone to west Florida for official audit on our retailer ZS Motors. He, and his team mates were there for two days, and three nights. His travel as well as accommodation expenses were a total of $ 1430 which has been sent by the accounts department.

You are requested that please pay the travel expenses as well as accommodation charges to Mr. James in lieu of the charges paid by him.

Thank you so much.

Samantha Jacob

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2 thoughts on “Letter for Claiming Travel Expenses”

Because I missed to logout my workday in my company CRM software.. My expenses for that day is zero . Now, I want to write request letter to manager …to approved my expense for that day Actually , I forgot to make work day logout …some days of this month So how I write the letter to my manager to approved my expense for this month Plz send me format

it is here: https://semioffice.com/office-applications/request-for-approval-of-expenses-missed-workday-logout/

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Travel Expense Reimbursement Request Letter

Travel expense reimbursement letter.

Jenny Kimmel

Human Resources Manager

SolutionRealty Corp.

2281 Diamond Street, Los Angeles, CA 90021

[email protected]

Sherryl Jackson

3196 Carriage Court,

Encinitas, CA 92024

Dear Sherryl Jackson,

I hope this email finds you well. I am Jenny Kimmel, a representative from SolutionRealty Corp. It has come to my attention that you recently incurred travel expenses as part of your duties at our company. I want to inform you that we have established a formal process to handle such claims and ensure transparency in our financial transactions.

The purpose of this letter is to provide you with a formal record of your claim and guide you on the necessary steps for reimbursement. It is crucial that all claims are made following our company's travel and expense policy, which is available for your reference on our intranet. Adhering to this policy will help us streamline our accounting processes and maintain uniformity in our financial transactions.

To initiate your reimbursement request, please follow these steps:

Complete the Travel Expense Reimbursement Form, which can be found on our intranet or by reaching out to our Finance Department.

Gather all relevant receipts, tickets, and supporting documentation for your travel expenses.

Submit the completed form and supporting documents to the Finance Department within 30 days of your return from the trip.

Once we have received your reimbursement request, our Finance Department will review it diligently. We strive to process all reimbursements promptly, and you can expect the funds to be deposited into your designated account within two weeks of approval.

If you have any questions or require assistance during the process, please do not hesitate to contact me via phone at 222 555 7777 or email me at [email protected]

Thank you for your cooperation in following our travel and expense policy. Your adherence to these guidelines ensures a smooth and transparent reimbursement process that benefits both employees and the company.

Best regards,

SolutionRealty Corp

222 555 7777

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Reimbursement Request Letters

1- reimbursement request letter for fuel expenses.

Date Receiver name and designation Street and state address Subject: Request letter for reimbursement of fuel expenses Dear Sir,

I am Lord Williams, working as a marketing manager in your organization. Through this letter, I want to forward my request for reimbursement of fuel expenses which were incurred in lieu of buying the fuel last month.

During the last month, as my position demanded, I had to travel far off places on a company vehicle in order to follow our sales officers and to get the feedback of clients about the company. In doing so, fuel consumption was much more and I had to bear all the expenses from my pocket. At the same time, I have kept all the records of expenses incurred on fuel consumption. I have also attached the receipts of fuel purchase, oil changing, number of miles I traveled, and monthly reports of odometer before and after each trip.

Since I was dealing with the company business, therefore I request you to reimburse [amount in US$] which I had spent for fuel purchase during the last month. All receipts are enclosed and attached to this letter.

I am looking forward to your positive response in this regard.

Yours sincerely,

2- Reimbursement Request for Maternity Expenses

The Head HR department, Stars Marketing Pvt. Ltd. 4356-Z Norman Street Near Hide Park, Michigan

Subject: Request letter for reimbursement of maternity expenses

Dear Madam,

I am Sandra Hans, Assistant Manager of Marketing section and I am writing this letter to you as a request for reimbursement of my maternity expenses during my treatment at Allied Family Hospital, Michigan from 7 th to 11 th of June, 20XX.

I was expecting in the 9 th month of pregnancy. I was brought to the above-mentioned hospital as soon as my pains started. Although it was a normal case, later became complex due to unknown reasons. Owing to the severity of the case, I went through C-Section surgery. The total amount counting towards my maternity expenses was USD 2000 which covered the surgery fee along with pre and post-operation medicines and treatment.

I am working on a contract basis in your organization and my employee ID is ORG- 456. As per the rules of the organization, a contract employee can be reimbursed 70 percent of his expenses incurred in lieu of his medical treatment. Since I fall under the same category in order to get medical reimbursement, therefore I request you for the same as soon as possible. I am waiting for your positive response.

3- Request Letter for Reimbursement of Expenses

Manager Finance, Jubilee Insurance Company, Michigan State, USA.

Subject: Request letter for reimbursement of expenses

My name is Adam Smith, working as a Manager Operations in your organization for the last ten years. Through this letter, I want to forward you a formal request for reimbursement of expenses of last month which were incurred during the course of the training period at Dan Park Hotel, New York.

I am enclosing with this letter the expense report for the month of June, 20XX.  I have enclosed receipts of five nights’ stay at the Dan Park Hotel during our annual conference from 5 th to 7 th of June, 20XX. I also added receipts for an additional three nights stay at Colorado state Hotel because coming back from the conference, I had to deal with the strike, and with a heavy heart, I stayed there until the strike was ended. You will find a receipt of dry cleaning because one of the strikers threw garbage on me and I got dark mud blots on my dress. Unfortunately, the dry cleaner was not able to clean it therefore, I had to buy a new dress with a shirt, tie, and shoes since all of these were damaged. I bought these items from John Men’s wear shop, receipts of which have also been attached.

Summing up all the expenses, the exact amount is about USD 2000. Since I was on an official tour, therefore all the expenses incurred during this time period must be borne by the company. Please consider my request and make reimbursement of all the above-mentioned expenses with my next month’s pay. I shall be very thankful to you for this act of kindness.

4- Request for Reimbursement of Air Ticket

The Finance Manager, USA Airlines.

Subject: Request letter for reimbursement of air ticket

I am Andrew Robert from Michigan and I am writing you this letter as a request to reimburse the amount which I incurred for buying the air ticket from Michigan to Germany. I had planned a trip to Germany with my family and I booked three tickets with your airline from a website for the same purpose. I got the confirmation email too about the flight scheduled for the upcoming Saturday. But now, due to unavoidable circumstances, I regret to inform you that I am to cancel the said trip and want reimbursement.

The reason behind this is I was watching a news channel last night. The coronavirus is taking the masses under its folds without any discrimination. I have decided to withdraw until things get normal. I had no choice but to cancel the trip because I have no intentions to visit Germany now.

Keeping in view the situation, I request you to reimburse my money [US$] which I paid online via debit card for buying three tickets. In the case of reimbursement, a customer has to report 48 hours before the flight. I am informing you 5 days in advance to give you sufficient time for verification. I hope your airline will reimburse my amount as soon as possible.

5- Request for Reimbursement of Payment

General Manager, [Name of the company] [Company’s address]

Subject: Request letter for reimbursement of the payment

My name is Sara from Country yard, New York and I am a regular customer of your company. I have been buying electronic products from your company outlets located at various places in the state. I was satisfied with the quality of the products I bought. Unfortunately, the recent product which I bought turned out to be a defective one. This incident forced me to write you a letter requesting reimbursement for my payment.

I had ordered an air conditioner through a website and I made the payment of USD 2000 through my credit card. The payment covered the price of the product as well as shipment charges. After installation, it did not work. On a detailed examination of the product, I found that the power cable was broken and there were a lot of scratches on its surface. Perhaps the damage occurred due to poor packaging or shipment.

Whatever the case may be, I will not accept the replacement of the purchased product. This time, I want direct purchase from an electronic store so that I would test it before installation. Therefore I want your company to reimburse my payment within 5 working days. Payment should also include shipment charges.

I hope that the customer care representative from your company will contact me in this regard as soon as possible. Enclosed with this letter is the invoice. I hope for a quick and positive response from your side regarding this matter.

6- Request for Reimbursement of Medical Bill

Finance Manager, Stars Marketing Pvt. Ltd. Michigan State, USA.

Subject: Letter of request for reimbursement of medical bill

My name is James Chadwick and I am working as Assistant Manager Finance in your company for the last ten years. The reason for writing you this letter is reimbursement of the money which was incurred on my father’s medical treatment. In my last sitting with you, I told you about my father’s poor health condition due to cardiac disease.

Last weekend, he got a heart attack. I immediately took him to the hospital. After his ECG and detailed medical examination, the medical board advised heart surgery to my father as soon as possible. Owing to the severity of the matter, he was operated the very next day on 02-07-20XX. I had to pay a total of USD 7000 in lieu of medical bills covering all operational and medicinal charges.

According to company laws and policies, I am entitled to get the full amount incurred on myself and my family’s medical treatment. I, therefore, forward you a request to reimburse the above-mentioned amount to me as soon as possible. I am expecting a positive and quick response from your side.

7- Request for Medical Expenses

Finance Manager, City Marketing Pvt. Ltd. Michigan State, USA.

Subject: Request letter for reimbursement of medical expenses

I am Neil Johnson and I am working as a Finance Manager in your company. My purpose in writing you this letter is to get the reimbursement of medical expenses incurred in the hospital for treatment.

Last weekend, while I was going back home from the office, I met a severe road accident. That was a busy road and I was hit from the back by a car driver who was drunk and crossing the speed limit as well. As a result of this accident, I not only got severe head injuries but also got my both hands and a couple of ribs broken. In short, I was badly injured and brought to a nearby hospital immediately. There I was kept in the intensive care unit and given medical treatment. After all the treatment, I was discharged and hospital management handed over to me an invoice mentioning hospital expenses. The amount was US$2000.

As per company rules, employees are entitled to reimbursement of medical expenses incurred on themselves and their family treatment. I, therefore, forward you a formal request to reimburse the above-mentioned amount. It will indeed be a great virtue and kindness from your side if you reimburse the expenses with the current monthly salary.

I hope you will entertain my request and grant me the incurred amount as soon as possible.

8- Reimbursement Request for Mobile Bill

C.E.O. Stars Marketing Pvt. Ltd. 4563, Street no. 34, Eden Garden, Michigan. Subject: Request letter for reimbursement of mobile bill

I hope you are doing well. First of all, I would like to congratulate you for organizing such a great company event in the presence of whole electronic and print media. To make this event successful, all employees worked as a team, putting their tireless efforts under your kind supervision.

My purpose for writing you this letter was to remind you about the reimbursement of my mobile bill. I noticed that you were happy to see a large number of participants and media persons in the company seminar. Being a relationship officer of the company, I was given the huge responsibility of inviting all the participants and media persons to this event. I used my personal mobile phone to call the participants. Some of the participants were not available during office hours but I called them later to make sure their presence at the event.

My sincere efforts were not aiming at to get any personal benefit but to make this seminar a successful event. When I received my last month’s mobile phone bill, it was US$1500 which was much more than my expectations. It was high because I was calling company clients, contractors, media, and other related persons. Therefore, I hereby forward my humble request to reimburse the amount incurred on official calling because the bill went beyond my monthly budget. I have printed my last month’s bill for verification purpose.

I hope you will entertain my request and give me a positive response.

9- Reimbursement Request for Travel Expenses

Subject: Request letter for reimbursement of travel expenses

Thanks for promoting me to the level of senior manager of your organization thereby helping me achieve another big milestone of my life. I am writing you this letter to forward a formal request for reimbursement of expenses incurred in lieu of traveling.

It is to remind you that as per our company rules, it required me higher management-level training in order to join the said post. For this purpose, I was sent to New York. There I attended a 40 days intensive training on project management. All expenses including return air ticket and taxi fares were summing up to US$5000.

Since I was there on behalf of my organization and I attended the prescribed training as an integral part of my job, it becomes the sole responsibility of the organization to refund me the expenses. All receipts up to end of the trip are enclosed with this letter for further verification. Please consider my request and reimburse all the travel expenses. I shall be thankful to you for this act of kindness.

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Published In: Forms

Travel Request Forms and Templates

Travel request forms are forms filled by an employee who is bound to travel for business purposes. The purpose of a travel request letter is for a company to carter for the expenses during the entire travel period. This depends on the agreement of the employee and his or her employer. This article discusses the uses, purpose, and contents of a travel request form. Templates are also provided.

What is Travel Request Form?

This document incorporates all the details needed by a traveler to forward for approval from the management before commencing travel. The contents of a travel request form include destinations, travel dates, mode of transport, meals, accommodation, among others. The travel request form also shows a traveling place as well as the expenses incurred. This document can fulfill several purposes: securing permissions for travel or seeking approval from companies on behalf of the traveling employees.

Importance of Using Travel Request Forms

Just like any other business document, a travel request form carries significant importance.

These documents ensure that travels within the company are:

• Feasible: Sometimes, the resources and funds within a company can be limited. This makes it essential to ensure that every available resource is put into good use. By doing so, the company’s finances will be stabilized.
• Authorized: It is very important for travel requests to go through proper departments and channels before it gets authorized in a business.
• Organized: These forms can also be kept and stored for future reference. Given that there is a form for every purpose, you need to ensure that these forms are organized to prevent confusion and clutter. It also allows easier access to documents when one needs them for reference.

Steps to Write a Travel Request Form

In order to write a travel request form efficiently, you simply need to follow two steps in a detailed manner.

These two steps are as follows:

Provide the details of the traveler

In the travel request form, including details of the traveler. This information includes the full names, contact information, designation employee id, email id, and fax number. Besides, don’t forget to mention why you are going on the trip. This should be indicated in the transfer request form.

Provide information regarding the trip

You must provide information relating to the trip. This includes the date and time of departure as well as the arrival time. Other things to write include the travel schedule, mode of transport, accommodation, travel itinerary, and meals.

Information to be Included in a Travel Request Form

For your travel request form to be composed in the most efficient manner, you must include the following information in it:

Personal information

This is the information belonging to the traveling employee. The Information needed to be filled in this document includes the individual’s name, contact information, job position, and respective department.

Travel request information

This is the information regarding the actual trip. It includes the date of travel, the purpose of travel, the duration of travel, destination, and estimated cost of travel. It is important to ensure that all these details are indicated in the letter. 

Indicate travel expenses and information regarding sponsorship

A travel request form should indicate the trip’s estimated expenses, including costs of meals and accommodation, transportation expenses, travel expenses, and car rentals, among others. If the trip is being sponsored, remember to include the contact information and details of the sponsors.

Mention the names of all the authorized persons

You cannot forward a travel request form unless a higher authority approves it. This is why you should mention all the names of authorized individuals, leaving a space for their signatures.

Ensure you incorporate all terms and conditions

To ensure that everything is working properly and meets all the transparency standards, incorporate all the terms and conditions. They should be clearly described in your form to avoid any inconveniences.

Put Accurate Information in a Travel Request Form

You must provide accurate information in your travel request form.

Here are some of the reasons why it is essential to do so:

Accurate information is crucial in a travel request form. In a company, you might not be the only individual asking for a travel request. To avoid mix up, you should indicate the details in your form. Make sure that the name is written, your destination, and other crucial details.

Furthermore, accurate information increases trustworthiness. When it comes to finances, don’t indicate inaccurate figures. Some people get tempted to indicate higher figures so that they can pocket the extra cash. For example, don’t allocate an inaccurate accommodation fee so that you can pocket the extra money. You should always provide honest and accurate information in your travel request form.

Download Templates

You can download our free travel request form templates. These templates can also be customized to fit your preferences.

Companies require receipts for employee expenses for two reasons: to confirm that employees are spending money how and when they claim and to back up deductions listed on the business’s tax return.

The comment section of a travel request form should include remarks on the importance of the trip. If you are applying, back your application up by giving reasons why the trip is important.

It depends on the policies of the company. In some companies, once the funds have been availed, it is impossible to cancel the request. In most companies, however, you can cancel the request even after it has been approved.

Travel request forms play an important role in organizations. For the best outcome, you can use our prepared available templates. They are easy to use and can be customized.

Related Documents

Sample Letter format for Claiming Travel Expenses from Office

[Below briefly describe on Sample Letter format for Claiming Travel Expenses from Office, manager, director, school, govt office or wherever you are working. You need to modify this sample according to your needs.]

Date…

Authority Name/Job Designation…,

Department Name…

Company/Institute name…

Address…

Sub: Letter for Claiming Travel Expenses

Kindly refer to the subject as cited above, it is submitted that undersigned has made a visit to (City name) in compliance of your order for the purpose of resolving managerial issues (Cause of travel) in the office of (Company/Institute name). In this context, undersigned made visits by air and then on the metro train. (Transport name).

Therefore, you are requested to please recommend my application for claiming travel expenses to the headquarters for its final approval.  My travel tickets and other receipts are attached herewith. (Show additional information).

Thanking You,

Your name…

Job Designation…

Another format,

Dear Sir/Madam,

It is to request you that (Employee/Higher Authority name), the Manager Supplies (Job Designation) and two of his teammates, (Mate name 1) and (Mate name 2) had gone to 9Area  and City name) for official audit (Travel purpose) on our retailer (Company/Institute name). He and his teammates were there for two days and three nights (More/less). His travel, as well as accommodation expenses, were a total of (Amount of money) which has been sent by the accounts department.

You are requested that please pay the travel expenses as well as accommodation charges to (Employee name) in lieu of the charges paid by him.

Thank you so much.

Request Application for No Objection Certificate for Abroad Studies

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Word & Excel Templates

Printable Word and Excel Templates

Reimbursement Letter for Transportation

If you are working in an organization and you often travel from one place to another, you have to pay for various expenses such as bus or car fares, fuel charges in case of a personal car, and much more. The company usually pays for these expenses so that the employee can commute easily. However, in case there is an emergency, and the employee has to pay from his pocket, he can write a letter to his boss asking for reimbursement for transportation.

Key points to add:

Include necessary details only:.

To write an effective letter, you need to be sure that you have included all those details that are relevant, and you think are important for your boss to know about.

Describe everything briefly:

It is important to remember that a request letter does not have to be too long or detailed. Try to explain everything briefly and concisely.

Mention the amount to be reimbursed:

When you want to be compensated for the money you have paid, it is crucial to describe how much you have paid and the total amount you expect the company to reimburse you. Mention that you are making this claim because it is the policy of the company.

Thank the reader at the end:

At the end of the letter, thank the reader in advance so that you can show some courtesy and gratitude. This will also show that you know how to end professional documents.

Read below the sample letters to learn how to write a reimbursement letter for transportation.

I am Mr. Adams, who has been working as a product sales manager in the company for many years. The purpose of this request letter is to ask you to reimburse all the transportation-related expenses that I paid for on behalf of the company.

Since I am a product sales manager, I often have to travel to different cities to sell products of the company. For traveling, I use public transport. Since last month, I have been traveling more frequently than expected and therefore, I had to pay more for transportation than what you have allocated for it.

Last month, I paid 2400 Rs. for bus fares. It is my humble request to you to please reimburse this amount.  Enclosed is a complete breakdown of all the transportation charges I have paid on different days. If you need more proof, I can provide you with the tickets also.

It is my humble request to you to please reimburse this amount of 2400 Rs. Thank you so much for your trust and cooperation. I am waiting for a quick response from your side.

Another sample letter is given below

I hope that this finds you in good health. I am Mr. ABC, the manager of the warehouse of the main branch. Please accept my request to reimburse all the transportation-related expenses I have borne on behalf of the company. Last month, there was so little supply of inventory in the warehouse. Due to this, I had to travel to another city to procure more products.

Due to frequent traveling, I ran out of money that was transferred to my account for traveling purposes. Since the company takes some time in issuing the funds, I spent money from my account.

I spent 10000 Rs. in total from my account. Kindly reimburse this amount.

Proof of all the receipts I received at the time of purchasing the ticket has been attached with this letter. To know more about these expenses before you can approve my request, you can contact me or call me to have an in-person conversation with me. I urge you to please approve my request as soon as possible since I need this money urgently. I am waiting for your response. Thank you so much for your anticipation.

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Home » Email » Write an Email to HR for Travel Reimbursement – Sample Email for Reimbursement of Travel Expenses

Write an Email to HR for Travel Reimbursement – Sample Email for Reimbursement of Travel Expenses

To: __________@________.___ , [Receiver’s Email Address] From: ___________@________.___ , [Sender’s Email Address]

Date: __/__/____ (Date)

Subject: Request for travel reimbursement

Respected Sir/Madam,

Respected, my name is __________ (Name) and I work in ___________ (Department) department of your reputed company i.e. _________ (Company Name). My employee ID is ________ (Employee ID) and I work as _________ (Designation).

I want to state that I visited _________ (Location) for ____________ (Personal/ Professional work). This visit was done on __/__/____ (Date). Therefore, I request you to kindly reimburse the amount of the expense of __________ (Amount) which I spent. I am attaching a copy of the ________ (cab booking/ hotel reservation/ ticket/ invoice/ boarding pass) for your reference.

I shall be highly thankful for your kind support.

Thanking you, ___________ (Signature), ___________ (Name), ___________ (Employee ID)

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Free Expense Report Templates

By Andy Marker | November 28, 2016 (updated June 5, 2023)

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We’ve compiled the most useful collection of free expense report templates for businesses, individuals, nonprofits, contractors, consultants, construction employees, and fundraisers so they can better track and manage their expense reports. 

Included on this page, you’ll find a monthly expense report template , a personal expense templat e, a printable business expense template , and more. We’ve also included a list of helpful tips for completing these expense report templates .

Simple Expense Report Template

Download a Simple Expense Report Template for

Excel |  Google Sheets  |  Smartsheet

This expense report is a simple spreadsheet template for documenting the date, type, and total amount for each expense. You can customize the template by changing the column headings for categorizing expenses, or adding new columns if needed. Expenses are itemized, and the total reimbursement amount is calculated for you, minus any advance payments.

Monthly Expense Report Template

Download a Monthly Expense Report Template for Excel | Google Sheets 

Keep your expenses organized and under control with this versatile monthly expense report template. The template features month-over-month records, with each month listed on a separate sheet, as well as a year-to-date total. This printable template is perfect for individuals, small businesses, fundraisers, project managers, contractors, construction workers, consultancies, and event managers who need to track expenses. Use it to stay on top of your finances and make better budgeting decisions.

Try one of these free business budget templates for your organization’s budgeting needs.

Personal Expense Template by Month

Download a Personal Expense Template by Month for Excel | Google Sheets

Consider using this personal expense template to effectively track your personal expenses on a monthly basis. With its user-friendly spreadsheet format, this printable expense template automatically calculates totals for you. You can customize the template to include only the expenses you want to monitor. Each month has its own dedicated sheet, making it convenient to track both monthly and annual expenses.

Expense Sheet Template

Download an Expense Sheet Template for Excel |  Google Sheets |  Smartsheet

This basic, printable expense spreadsheet template is designed for tracking expenses, whether personal or business related. Keep track of purchases and other expenses by recording the payment method, type of transaction, amount of payment, and other details. You can refer to this expense sheet as an easy reference tool, create a monthly expense report, and quickly add up expenses over any time period.

Weekly Expense Report Template

Download a Weekly Expense Report Template for Excel | Google Sheets |  Smartsheet

Some businesses require employees to submit a weekly expense report so that expenses are tracked and reimbursed at consistent intervals. This printable template provides a detailed record of expenses for each day of the week. You can edit the expense categories to match your needs, whether it’s travel costs, shipping charges, business meals, or other expenses. There is room for describing the business purpose, the payment type, and subtotals.

Travel Expense Report Template

Download a Travel Expense Report Template for Excel | Google Sheets  

Use this detailed , printable travel expense report template to keep track of business trip expenditures. The template includes mileage tracking, other transportation costs, lodging, meals, and more. There is also space to list miscellaneous expenses that may not fit in the other categories. You can include contact information for employer and employee, as well as info on the travel destination and purpose for the trip.

Expense Report With Mileage Tracking Template

Download an Expense Report With Mileage Tracking Template for Excel | Google Sheets  

Many businesses and organizations reimburse employees for mileage costs. This printable mileage expense sheet can be used to record and calculate any miles accrued for business purposes. Enter the rate per mile and number of miles to calculate the total reimbursement amount. You can include odometer readings and any pertinent notes about the travel purpose or outcome.

Business Expense Reimbursement Form

Download a Business Expense Reimbursement Form for

Excel | Google Sheets  

Employees can use this expenses template to request reimbursement for business costs, and employers can use it to document that remuneration has been paid. This is a basic, printable expense report template for describing costs, listing amounts, and recording the dates of each transaction. It can also easily be modified to include more columns or additional information.

Explore these small business budget templates to find effective tools for managing the financial health of your company.

Printable Template to Fill Out Manually for Business Expenses

 Download a Printable Template for Business Expenses Microsoft Word | Adobe PDF | Google Docs  

If you need a printable business expenses template, this template provides an itemized outline in table format and is perfect for manually filling in your expenses. Use this easy-to-fill template to document various expenses, the dates they were accrued, total costs, and employee information. This is a simple form that can be modified to suit your business. 

Download one of these free small business expense report templates to help ensure your small business’ expenditures and reimbursements are accurate.

Credit Card Expense Report Template

Download a Credit Card Expense Report Template for Microsoft Word | Adobe PDF | Google Docs 

This template summarizes credit card expenses to track business purpose and amount spent. This printable expense report should be accompanied by receipts for each transaction listed. This can be used for tracking monthly credit card expenses and to support accounting practices.

Annual Expense Report Template

Download an Annual Expense Report Template for Microsoft Word | Adobe PDF | Google Docs  

Use this annual expense report to itemize monthly, quarterly, and yearly totals. This printable form provides a quick breakdown of costs for different business categories and creates a brief report. There is also room for notes if additional information needs to be included.

Startup Expenses Template

Download a Startup Expenses Template for Excel | Google Sheets

This comprehensive expenses-tracking template is designed for startups to monitor all the expenditures related to launching a new business. The printable template consists of pre-built sections for specific expense categories, such as building and real estate, leasehold improvements, location and administrative expenses, opening inventory, capital equipment, advertising and promotional expenses, and miscellaneous expenses. It offers a ready-made report that can be shared with key stakeholders and investors to review your startup's expenses.

Daily Expense Report Template

Download a Daily Expense Report Template for Excel | Adobe PDF | Google Sheets

This printable daily expense report template is a versatile solution for various industries such as nonprofit, fundraising, construction, events, trucking, and more. It empowers you to track and monitor daily expenditures efficiently, ensuring timely and accurate reimbursements.

Petty Cash Expense Report Template

Download a Petty Cash Expense Report Template for Excel | Google Sheets

For organizations that keep petty cash on hand to pay for incidental expenses (e.g., paying for employees’ lunches, reimbursements, office supplies, etc.), this printable template is the perfect solution to track minor, one-off expenditures. The template provides Currency on Hand, Quantity, and Balance columns for each petty-cash expense. The template then allows you to reconcile these expenses with Total Reconciled Petty Cash and Total Approved Petty Cash cells, and the over-under difference between the two.

What Is an Expense Report? 

An expense report is a document used to track business-related expenses, such as transportation, food, lodging, and conference fees. This report includes details about each expense and acts as an organized record for reimbursement or accounting purposes.

An expense report can be used in various scenarios, such as tracking mileage and gas expenses during work-related travel, documenting client meetings that involve meals or entertainment, or recording office supply purchases made by employees. Maintaining these reports is crucial for budgeting and tax purposes.

Requiring receipts for all listed expenses on a report is essential to minimize errors and facilitate tax filing and audits for businesses. Regularly collecting expense reports from employees, whether on a weekly or monthly basis, serves as a safeguard against budgeting inaccuracies and helps ensure responsible use of funds.

An expense report can vary in length and complexity depending on your business requirements. It can range from a simple form to a more detailed document. Typically, an expense report includes a comprehensive list of expenses, with each item accompanied by a corresponding description. Expenses are often categorized, such as mileage, meals, hotel costs, or employee training. In the case of a travel-specific report, additional details about the destination and purpose of travel may also be included.

When listing expenses for reimbursement, it is essential to include any advance payments, which should be deducted from the total reimbursement amount. Additionally, the expense report should feature a signature line for approval and provide contact information for the individual requesting reimbursement. To maintain accurate records, it is advisable to indicate the specific time period during which the expenses were incurred.

What Is an Expense Report Template? 

An expense report template is a tool that allows businesses or individuals to track and manage their expenses. An expense report template helps you record and organize your expenses, making it easier to get reimbursed and keep accurate financial records.

Expense report templates are not only helpful for tracking business expenses but can also be useful in creating a personal budget. Whether you're managing your monthly income and household expenses, undertaking a remodeling project, or planning a special event like a wedding, a personal budget can help you keep track of your primary expenses. It enables you to identify areas where you can reduce costs and increase your savings.

While expense reports may vary, they typically include the following sections, which you can customize to suit your expense-tracking needs: 

• Name: Enter the name of the individual to be reimbursed upon submission of the expense report.
• Department: Specify the department where the employee or individual works or the department responsible for reimbursement.
• Manager: Provide the name of the manager overseeing the individual who can authorize expense reimbursement.
• Date: Indicate the date(s) when the expenses were incurred.
• Description: Provide a brief description for each expense.
• Expense Category: Categorize expenses into specific categories such as transportation, lodging, food, or mileage.
• Subtotal: Calculate the total of all expenses.
• Advances: Record any advances given to the individual being reimbursed.
• Total Reimbursement: Calculate the final reimbursement amount by subtracting any advances from the subtotal.
• Authorized By: Enter the name of the person authorized to approve the expense reimbursement.
• Receipts: Attach all relevant receipts to the expense report for accurate and timely payment processing.

Discover a Better Way to Manage Expense Reporting and Finance Operations

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Additional Resources

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Discover why over 90% of Fortune 100 companies trust Smartsheet to get work done.

Travel Expense

A travel expense report refers to a document that enables employees and businesses to track and manage company-related trips. Usually, the expense report is in printed form and has entries that an employee just fills. A travel expense report is important for both tax and accounting purposes.

Creating such a report from scratch can be a tough task but with readymade printable templates, this doesn’t have to be the case. To help ease your worries, we have included 16+ travel expense examples and templates to use to create your own report in an instant. Also, these travel policy expense examples might be of interest to you.

Travel Expense Examples & Templates

1. travel expense report.

• Google Docs

Size: A4 & US

Compiling a travel expense report can be time-consuming and tough, but not anymore with this premium travel expense report template. This template can be modified to match your specific travel needs. It makes creating your report easy, convenient and fast. The document can be edited with Word, Pages and Google Docs. Get it today via instant download.

2. Travel Expense Reimbursement Form Template

With this elegantly designed and comprehensive travel expense reimbursement form template, you can track all your travel-related expenses and ensure your are paid to the last coin. Monitoring your expenses also helps you plan your trip in the future. The template is also compatible with Word, Pages and Google Docs and you can edit it with any of these applications.

3. Employee Travel Expense Report Template

With this employee travel expense report template, you will be able to keep your travel expenses in check, and not overspend. The template lets you capture every expense including hotel expenses, car rental and food expenses.  The template is easy to use since everything has been done for you. Your only work will be to enter expense amounts in the respective fields.

4. Travel and Expense Policy Template

After a business travel, you will be required to create an expense report which will form the basis of your reimbursement. This template enables you quickly generate a professional-looking expense report that you can present for refund. The template is customizable, allowing you to add or remove fields. Download it today!

5. Auto Expense Travel Report

Use this auto expense travel report template to create your own travel expense report that facilitates your reimbursement of travel expenses. The template is easy to customize so if you want to add or remove certain details, you can do so with a lot of ease. Plus, the template is easily editable without requiring a special program.

6. Free Travel Expense Sheet Template

• Google Sheets
• Editable PDF

Use this creatively-designed travel expense sheet to capture all your expenses to the last detail. Available freely on instant download, the template contains all imaginable expenses that you can incur while on a business trip. The template is easy to edit as it is compatible with many applications like Google Sheets, Word, Numbers, Pages and Google Docs.

7. Travel Expense Report Template

Create a great-looking report with this travel expense report template in an instant. The file can be accessed anywhere and at any time because it is instantly available through download. This template helps you to document all your travel expense and ensure that you never miss anything. You don’t have to waste time creating your report from scratch. This template gives you a head start when preparing your report .

8. Travel Expense Reimbursement Policy

Size: 118 KB

This thoughtfully designed travel expense reimbursement policy helps you to inform the company of every coin you spend a while on a business trip. Thanks to the instant availability of this report, you can be done creating a well-formatted report in just minutes. The template is easy to edit and can be customized by adding or removing expense details as you wish.

9. Travel and Transportation Expenses

Size: 27 KB

Use this premium-quality template to capture every expense that you incur while travel on company business. The template is easily accessible because you can get it on instant download. You can easily edit the document with normal programs without requiring a special program. Plus, the template is highly customizable, allowing you to tweak features to make it conform to your own organization.

10. Travel Expenses and Allowances

Size: 168 KB

Track all travel expenses to facilitate easy and full reimbursement of the costs you incurred while on a company trip. Just download this travel expense and allowances template and create your report in an instant. The template features a minimalistic design and is important for tax and accounting. The report uses easily customizable header and can be edited with most common programs.

11. Travel Expense Detail Sample

Size: 317 KB

This is a comprehensive travel expense template designed specifically for making it easy for you to document all the costs you incur while on a business trip. Available instantly upon download, the template supports different file formats like editable PDF. With the use of this template, you will be able to create your expense report in a flash. You can be busy doing other things instead of letting the report stress.

12. Travel Expense Voucher

Size: 546 KB

This travel expense voucher prevents cases of budgeting errors and ensures that the company money is spent for the things that matter most. The template is easy to use, and saves a lot of time because one only needs to enter their travel expense details and be done in a moment.

13. Statement Of Travel Expenses

Use this statement of travel expenses to create your own travel expense report that enables you to accurately capture all travel costs incurred in your company trip. This PDF-based template is easy to edit and can be customized to suit your own organization structure. Download the template today and be done in a few minutes.

14. Travel Expenses Claim Form

Size: 35 KB

Use this printable travel expenses claim form template to organize your travel expenses incurred on a company trip.  The report contains entries for common business travel costs as well as a section for including detailed information about the employee. Download the template today and get started creating your report.

15. Affidavit for Travel Expenses

Size: 14 KB

Instead of constantly scribbling your travel costs on the back of your ticket or boarding pass, use this template to neatly organize your expenses so that they look presentable and professional. The template captures all travel related expenses in one form, and also has spaces for uploading receipt images.

16. Federation Travel Expenses Policy

Size: 390 KB

Travel managers and corporate managers alike will love the convenience that comes with using the same template for capturing all travel expenses. Download the template today and create a professional-grade travel expense report in a flash.

17. Travel Expense Report  in PDF

Size: 617 KB

This printable travel expense report in PDF is instantly downloadable and allows any employee to accurately document their business trip expenses. It is both for tax and accounting purposes. Just download the template and you will have your report in a few minutes.

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Future Developments

Who should use this publication.

Users of employer-provided vehicles.

Who doesn’t need to use this publication.

Volunteers.

Comments and suggestions.

Getting answers to your tax questions.

Getting tax forms, instructions, and publications.

Ordering tax forms, instructions, and publications.

• Useful Items - You may want to see:

Travel expenses defined.

Members of the Armed Forces.

Main place of business or work.

No main place of business or work.

Factors used to determine tax home.

Tax Home Different From Family Home

Temporary assignment vs. indefinite assignment.

Exception for federal crime investigations or prosecutions.

Determining temporary or indefinite.

Going home on days off.

Probationary work period.

Separating costs.

Travel expenses for another individual.

Business associate.

Bona fide business purpose.

Lavish or extravagant.

50% limit on meals.

Actual Cost

Incidental expenses.

Incidental-expenses-only method.

50% limit may apply.

Who can use the standard meal allowance.

Use of the standard meal allowance for other travel.

Amount of standard meal allowance.

Federal government's fiscal year.

Standard meal allowance for areas outside the continental United States.

Special rate for transportation workers.

Travel for days you depart and return.

Trip Primarily for Business

Trip primarily for personal reasons.

Public transportation.

Private car.

Travel entirely for business.

Travel considered entirely for business.

Exception 1—No substantial control.

Exception 2—Outside United States no more than a week.

Exception 3—Less than 25% of time on personal activities.

Exception 4—Vacation not a major consideration.

Travel allocation rules.

Counting business days.

Transportation day.

Presence required.

Day spent on business.

Certain weekends and holidays.

Nonbusiness activity on the way to or from your business destination.

Nonbusiness activity at, near, or beyond business destination.

Other methods.

Travel Primarily for Personal Reasons

Daily limit on luxury water travel.

Meals and entertainment.

Not separately stated.

Convention agenda.

North American area.

Reasonableness test.

Cruise Ships

Deduction may depend on your type of business.

Exceptions to the Rules

Entertainment events.

Entertainment facilities.

Club dues and membership fees.

Gift or entertainment.

Other rules for meals and entertainment expenses.

Costs to include or exclude.

Application of 50% limit.

When to apply the 50% limit.

Taking turns paying for meals.

1—Expenses treated as compensation.

2—Employee's reimbursed expenses.

3—Self-employed reimbursed expenses.

4—Recreational expenses for employees.

5—Advertising expenses.

6—Sale of meals.

Individuals subject to “hours of service” limits.

Incidental costs.

Exceptions.

• Illustration of transportation expenses.

Temporary work location.

No regular place of work.

Two places of work.

Armed Forces reservists.

Commuting expenses.

Parking fees.

Advertising display on car.

Hauling tools or instruments.

Union members' trips from a union hall.

Office in the home.

Examples of deductible transportation.

Choosing the standard mileage rate.

Standard mileage rate not allowed.

Five or more cars.

Personal property taxes.

Parking fees and tolls.

Sale, trade-in, or other disposition.

Business and personal use.

Employer-provided vehicle.

Interest on car loans.

Taxes paid on your car.

Sales taxes.

Fines and collateral.

Casualty and theft losses.

Depreciation and section 179 deductions.

Car defined.

Qualified nonpersonal use vehicles.

More information.

More than 50% business use requirement.

Limit on the amount of the section 179 deduction.

Limit for sport utility and certain other vehicles.

Limit on total section 179 deduction, special depreciation allowance, and depreciation deduction.

Cost of car.

Basis of car for depreciation.

When to elect.

How to elect.

Revoking an election.

Recapture of section 179 deduction.

Dispositions.

Combined depreciation.

Qualified car.

Election not to claim the special depreciation allowance.

Placed in service.

Car placed in service and disposed of in the same year.

Methods of depreciation.

More-than-50%-use test.

Qualified business use.

Use of your car by another person.

Business use changes.

Use for more than one purpose.

Change from personal to business use.

Unadjusted basis.

Improvements.

Car trade-in.

Effect of trade-in on basis.

Traded car used only for business.

Traded car used partly in business.

Modified Accelerated Cost Recovery System (MACRS).

Recovery period.

Depreciation methods.

MACRS depreciation chart.

Depreciation in future years.

Disposition of car during recovery period.

How to use the 2023 chart.

Trucks and vans.

Car used less than full year.

Reduction for personal use.

Section 179 deduction.

Deductions in years after the recovery period.

Unrecovered basis.

The recovery period.

How to treat unrecovered basis.

• Table 4-1. 2023 MACRS Depreciation Chart      (Use To Figure Depreciation for 2023)

Qualified business use 50% or less in year placed in service.

Qualified business use 50% or less in a later year.

Excess depreciation.

Deductible payments.

Fair market value.

Figuring the inclusion amount.

Leased car changed from business to personal use.

Leased car changed from personal to business use.

Reporting inclusion amounts.

Casualty or theft.

Depreciation adjustment when you used the standard mileage rate.

Depreciation deduction for the year of disposition.

Documentary evidence.

Adequate evidence.

Canceled check.

Duplicate information.

Timely kept records.

Proving business purpose.

Confidential information.

Exceptional circumstances.

Destroyed records.

Separating expenses.

Combining items.

Car expenses.

Gift expenses.

Allocating total cost.

If your return is examined.

Reimbursed for expenses.

Examples of Records

Self-employed.

Both self-employed and an employee.

Statutory employees.

Reimbursement for personal expenses.

Income-producing property.

Value reported on Form W-2.

Full value included in your income.

Less than full value included in your income.

No reimbursement.

Reimbursement, allowance, or advance.

Reasonable period of time.

Employee meets accountable plan rules.

Accountable plan rules not met.

Failure to return excess reimbursements.

Reimbursement of nondeductible expenses.

Adequate Accounting

Related to employer.

The federal rate.

Regular federal per diem rate.

The standard meal allowance.

High-low rate.

Prorating the standard meal allowance on partial days of travel.

The standard mileage rate.

Fixed and variable rate (FAVR).

Reporting your expenses with a per diem or car allowance.

Allowance less than or equal to the federal rate.

Allowance more than the federal rate.

Travel advance.

Unproven amounts.

Per diem allowance more than federal rate.

Reporting your expenses under a nonaccountable plan.

Adequate accounting.

How to report.

Contractor adequately accounts.

Contractor doesn’t adequately account.

High-low method.

Regular federal per diem rate method.

Federal per diem rate method.

Information on use of cars.

Standard mileage rate.

Actual expenses.

Car rentals.

Transportation expenses.

Employee business expenses other than nonentertainment meals.

Non-entertainment-related meal expenses.

“Hours of service” limits.

Reimbursements.

Allocating your reimbursement.

After you complete the form.

Limits on employee business expenses.

1. Limit on meals and entertainment.

2. Limit on total itemized deductions.

Member of a reserve component.

Officials Paid on a Fee Basis

Special rules for married persons.

Where to report.

Impairment-Related Work Expenses of Disabled Employees

Preparing and filing your tax return.

Free options for tax preparation.

Using online tools to help prepare your return.

Need someone to prepare your tax return?

Employers can register to use Business Services Online.

IRS social media.

Watching IRS videos.

Online tax information in other languages.

Free Over-the-Phone Interpreter (OPI) Service.

Accessibility Helpline available for taxpayers with disabilities.

Getting tax forms and publications.

Getting tax publications and instructions in eBook format.

Access your online account (individual taxpayers only).

Get a transcript of your return.

Tax Pro Account.

Using direct deposit.

Reporting and resolving your tax-related identity theft issues.

Ways to check on the status of your refund.

Making a tax payment.

What if I can’t pay now?

Filing an amended return.

Checking the status of your amended return.

Understanding an IRS notice or letter you’ve received.

Responding to an IRS notice or letter.

Contacting your local TAC.

What Is TAS?

How can you learn about your taxpayer rights, what can tas do for you, how can you reach tas, how else does tas help taxpayers, low income taxpayer clinics (litcs), appendix a-1. inclusion amounts for passenger automobiles first leased in 2018, appendix a-2. inclusion amounts for passenger automobiles first leased in 2019, appendix a-3. inclusion amounts for passenger automobiles first leased in 2020, appendix a-4. inclusion amounts for passenger automobiles first leased in 2021, appendix a-5. inclusion amounts for passenger automobiles first leased in 2022, appendix a-6. inclusion amounts for passenger automobiles first leased in 2023, publication 463 - additional material, publication 463 (2023), travel, gift, and car expenses.

For use in preparing 2023 Returns

Publication 463 - Introductory Material

For the latest information about developments related to Pub. 463, such as legislation enacted after it was published, go to IRS.gov/Pub463 .

Standard mileage rate. For 2023, the standard mileage rate for the cost of operating your car for business use is 65.5 cents ($0.655) per mile. Car expenses and use of the standard mileage rate are explained in chapter 4.

Depreciation limits on cars, trucks, and vans. The first-year limit on the depreciation deduction, special depreciation allowance, and section 179 deduction for vehicles acquired before September 28, 2017, and placed in service during 2023, is $12,200. The first-year limit on depreciation, special depreciation allowance, and section 179 deduction for vehicles acquired after September 27, 2017, and placed in service during 2023 increases to $20,200. If you elect not to claim a special depreciation allowance for a vehicle placed in service in 2023, the amount increases to $12,200. Depreciation limits are explained in chapter 4.

Section 179 deduction. The maximum amount you can elect to deduct for section 179 property (including cars, trucks, and vans) you placed in service in tax years beginning in 2023 is $1,160,000. This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $2,890,000. Section 179 deduction is explained in chapter 4.Also, the maximum section 179 expense deduction for sport utility vehicles placed in service in tax years beginning in 2023 is $28,900.

Temporary deduction of 100% business meals. The 100% deduction on certain business meals expenses as amended under the Taxpayer Certainty and Disaster Tax Relief Act of 2020, and enacted by the Consolidated Appropriations Act, 2021, has expired. Generally, the cost of business meals remains deductible, subject to the 50% limitation. See 50% Limit in chapter 2 for more information.

Photographs of missing children. The IRS is a proud partner with the National Center for Missing & Exploited Children® (NCMEC) . Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 800-THE-LOST (800-843-5678) if you recognize a child.

Per diem rates. Current and prior per diem rates may be found on the U.S. General Services Administration (GSA) website at GSA.gov/travel/plan-book/per-diem-rates .

Introduction

You may be able to deduct the ordinary and necessary business-related expenses you have for:

Non-entertainment-related meals,

Transportation.

This publication explains:

What expenses are deductible,

How to report them on your return,

What records you need to prove your expenses, and

How to treat any expense reimbursements you may receive.

You should read this publication if you are an employee or a sole proprietor who has business-related travel, non-entertainment-related meals, gift, or transportation expenses.

If an employer-provided vehicle was available for your use, you received a fringe benefit. Generally, your employer must include the value of the use or availability of the vehicle in your income. However, there are exceptions if the use of the vehicle qualifies as a working condition fringe benefit (such as the use of a qualified nonpersonal use vehicle).

A working condition fringe benefit is any property or service provided to you by your employer, the cost of which would be allowable as an employee business expense deduction if you had paid for it.

A qualified nonpersonal use vehicle is one that isn’t likely to be used more than minimally for personal purposes because of its design. See Qualified nonpersonal use vehicles under Actual Car Expenses in chapter 4.

For information on how to report your car expenses that your employer didn’t provide or reimburse you for (such as when you pay for gas and maintenance for a car your employer provides), see Vehicle Provided by Your Employer in chapter 6.

Partnerships, corporations, trusts, and employers who reimburse their employees for business expenses should refer to the instructions for their required tax forms, for information on deducting travel, meals, and entertainment expenses.

If you are an employee, you won’t need to read this publication if all of the following are true.

You fully accounted to your employer for your work-related expenses.

You received full reimbursement for your expenses.

Your employer required you to return any excess reimbursement and you did so.

There is no amount shown with a code L in box 12 of your Form W-2, Wage and Tax Statement.

If you perform services as a volunteer worker for a qualified charity, you may be able to deduct some of your costs as a charitable contribution. See Out-of-Pocket Expenses in Giving Services in Pub. 526, Charitable Contributions, for information on the expenses you can deduct.

We welcome your comments about this publication and suggestions for future editions.

You can send us comments through IRS.gov/FormComments . Or, you can write to the Internal Revenue Service, Tax Forms and Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224.

Although we can’t respond individually to each comment received, we do appreciate your feedback and will consider your comments and suggestions as we revise our tax forms, instructions, and publications. Don’t send tax questions, tax returns, or payments to the above address.

If you have a tax question not answered by this publication or the How To Get Tax Help section at the end of this publication, go to the IRS Interactive Tax Assistant page at IRS.gov/Help/ITA where you can find topics by using the search feature or viewing the categories listed.

Go to IRS.gov/Forms to download current and prior-year forms, instructions, and publications.

Go to IRS.gov/OrderForms to order current forms, instructions, and publications; call 800-829-3676 to order prior-year forms and instructions. The IRS will process your order for forms and publications as soon as possible. Don’t resubmit requests you’ve already sent us. You can get forms and publications faster online.

Useful Items

Publication

946 How To Depreciate Property

Form (and Instructions)

Schedule A (Form 1040) Itemized Deductions

Schedule C (Form 1040) Profit or Loss From Business (Sole Proprietorship)

Schedule F (Form 1040) Profit or Loss From Farming

2106 Employee Business Expenses

4562 Depreciation and Amortization (Including Information on Listed Property)

See How To Get Tax Help for information about getting these publications and forms.

If you temporarily travel away from your tax home, you can use this chapter to determine if you have deductible travel expenses.

This chapter discusses:

Traveling away from home,

Temporary assignment or job, and

What travel expenses are deductible.

For tax purposes, travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job.

An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your business. An expense doesn’t have to be required to be considered necessary.

You will find examples of deductible travel expenses in Table 1-1 .

Traveling Away From Home

You are traveling away from home if:

Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work, and

You need to sleep or rest to meet the demands of your work while away from home.

You are a railroad conductor. You leave your home terminal on a regularly scheduled round-trip run between two cities and return home 16 hours later. During the run, you have 6 hours off at your turnaround point where you eat two meals and rent a hotel room to get necessary sleep before starting the return trip. You are considered to be away from home.

You are a truck driver. You leave your terminal and return to it later the same day. You get an hour off at your turnaround point to eat. Because you aren’t off to get necessary sleep and the brief time off isn’t an adequate rest period, you aren’t traveling away from home.

If you are a member of the U.S. Armed Forces on a permanent duty assignment overseas, you aren’t traveling away from home. You can’t deduct your expenses for meals and lodging. You can’t deduct these expenses even if you have to maintain a home in the United States for your family members who aren’t allowed to accompany you overseas. If you are transferred from one permanent duty station to another, you may have deductible moving expenses, which are explained in Pub. 3, Armed Forces' Tax Guide.

A naval officer assigned to permanent duty aboard a ship that has regular eating and living facilities has a tax home (explained next) aboard the ship for travel expense purposes.

To determine whether you are traveling away from home, you must first determine the location of your tax home.

Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. It includes the entire city or general area in which your business or work is located.

If you have more than one regular place of business, your tax home is your main place of business. See Main place of business or work , later.

If you don’t have a regular or a main place of business because of the nature of your work, then your tax home may be the place where you regularly live. See No main place of business or work , later.

If you don’t have a regular or main place of business or post of duty and there is no place where you regularly live, you are considered an itinerant (a transient) and your tax home is wherever you work. As an itinerant, you can’t claim a travel expense deduction because you are never considered to be traveling away from home.

If you have more than one place of work, consider the following when determining which one is your main place of business or work.

The total time you ordinarily spend in each place.

The level of your business activity in each place.

Whether your income from each place is significant or insignificant.

You live in Cincinnati where you have a seasonal job for 8 months each year and earn $40,000. You work the other 4 months in Miami, also at a seasonal job, and earn $15,000. Cincinnati is your main place of work because you spend most of your time there and earn most of your income there.

You may have a tax home even if you don’t have a regular or main place of work. Your tax home may be the home where you regularly live.

If you don’t have a regular or main place of business or work, use the following three factors to determine where your tax home is.

You perform part of your business in the area of your main home and use that home for lodging while doing business in the area.

You have living expenses at your main home that you duplicate because your business requires you to be away from that home.

You haven’t abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging.

If you satisfy all three factors, your tax home is the home where you regularly live. If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you can’t deduct travel expenses.

You are single and live in Boston in an apartment you rent. You have worked for your employer in Boston for a number of years. Your employer enrolls you in a 12-month executive training program. You don’t expect to return to work in Boston after you complete your training.

During your training, you don’t do any work in Boston. Instead, you receive classroom and on-the-job training throughout the United States. You keep your apartment in Boston and return to it frequently. You use your apartment to conduct your personal business. You also keep up your community contacts in Boston. When you complete your training, you are transferred to Los Angeles.

You don’t satisfy factor (1) because you didn’t work in Boston. You satisfy factor (2) because you had duplicate living expenses. You also satisfy factor (3) because you didn’t abandon your apartment in Boston as your main home, you kept your community contacts, and you frequently returned to live in your apartment. Therefore, you have a tax home in Boston.

You are an outside salesperson with a sales territory covering several states. Your employer's main office is in Newark, but you don’t conduct any business there. Your work assignments are temporary, and you have no way of knowing where your future assignments will be located. You have a room in your married sister's house in Dayton. You stay there for one or two weekends a year, but you do no work in the area. You don’t pay your sister for the use of the room.

You don’t satisfy any of the three factors listed earlier. You are an itinerant and have no tax home.

If you (and your family) don’t live at your tax home (defined earlier), you can’t deduct the cost of traveling between your tax home and your family home. You also can’t deduct the cost of meals and lodging while at your tax home. See Example 1 , later.

If you are working temporarily in the same city where you and your family live, you may be considered as traveling away from home. See Example 2 , later.

You are a truck driver and you and your family live in Tucson. You are employed by a trucking firm that has its terminal in Phoenix. At the end of your long runs, you return to your home terminal in Phoenix and spend one night there before returning home. You can’t deduct any expenses you have for meals and lodging in Phoenix or the cost of traveling from Phoenix to Tucson. This is because Phoenix is your tax home.

Your family home is in Pittsburgh, where you work 12 weeks a year. The rest of the year you work for the same employer in Baltimore. In Baltimore, you eat in restaurants and sleep in a rooming house. Your salary is the same whether you are in Pittsburgh or Baltimore.

Because you spend most of your working time and earn most of your salary in Baltimore, that city is your tax home. You can’t deduct any expenses you have for meals and lodging there. However, when you return to work in Pittsburgh, you are away from your tax home even though you stay at your family home. You can deduct the cost of your round trip between Baltimore and Pittsburgh. You can also deduct your part of your family's living expenses for non-entertainment-related meals and lodging while you are living and working in Pittsburgh.

Temporary Assignment or Job

You may regularly work at your tax home and also work at another location. It may not be practical to return to your tax home from this other location at the end of each workday.

If your assignment or job away from your main place of work is temporary, your tax home doesn’t change. You are considered to be away from home for the whole period you are away from your main place of work. You can deduct your travel expenses if they otherwise qualify for deduction. Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less.

However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you can’t deduct your travel expenses while there. An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than 1 year, whether or not it actually lasts for more than 1 year.

If your assignment is indefinite, you must include in your income any amounts you receive from your employer for living expenses, even if they are called “travel allowances” and you account to your employer for them. You may be able to deduct the cost of relocating to your new tax home as a moving expense. See Pub. 3 for more information.

If you are a federal employee participating in a federal crime investigation or prosecution, you aren’t subject to the 1-year rule. This means you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year provided you meet the other requirements for deductibility.

For you to qualify, the Attorney General (or their designee) must certify that you are traveling:

For the federal government;

In a temporary duty status; and

To investigate, prosecute, or provide support services for the investigation or prosecution of a federal crime.

You must determine whether your assignment is temporary or indefinite when you start work. If you expect an assignment or job to last for 1 year or less, it is temporary unless there are facts and circumstances that indicate otherwise. An assignment or job that is initially temporary may become indefinite due to changed circumstances. A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment.

The following examples illustrate whether an assignment or job is temporary or indefinite.

You are a construction worker. You live and regularly work in Los Angeles. You are a member of a trade union in Los Angeles that helps you get work in the Los Angeles area. Your tax home is Los Angeles. Because of a shortage of work, you took a job on a construction project in Fresno. Your job was scheduled to end in 8 months. The job actually lasted 10 months.

You realistically expected the job in Fresno to last 8 months. The job actually did last less than 1 year. The job is temporary and your tax home is still in Los Angeles.

The facts are the same as in Example 1 , except that you realistically expected the work in Fresno to last 18 months. The job was actually completed in 10 months.

Your job in Fresno is indefinite because you realistically expected the work to last longer than 1 year, even though it actually lasted less than 1 year. You can’t deduct any travel expenses you had in Fresno because Fresno became your tax home.

The facts are the same as in Example 1 , except that you realistically expected the work in Fresno to last 9 months. After 8 months, however, you were asked to remain for 7 more months (for a total actual stay of 15 months).

Initially, you realistically expected the job in Fresno to last for only 9 months. However, due to changed circumstances occurring after 8 months, it was no longer realistic for you to expect that the job in Fresno would last for 1 year or less. You can deduct only your travel expenses for the first 8 months. You can’t deduct any travel expenses you had after that time because Fresno became your tax home when the job became indefinite.

If you go back to your tax home from a temporary assignment on your days off, you aren’t considered away from home while you are in your hometown. You can’t deduct the cost of your meals and lodging there. However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work.

If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. In addition, you can deduct your expenses of returning home up to the amount you would have spent for meals had you stayed at your temporary place of work.

If you take a job that requires you to move, with the understanding that you will keep the job if your work is satisfactory during a probationary period, the job is indefinite. You can’t deduct any of your expenses for meals and lodging during the probationary period.

What Travel Expenses Are Deductible?

Once you have determined that you are traveling away from your tax home, you can determine what travel expenses are deductible.

You can deduct ordinary and necessary expenses you have when you travel away from home on business. The type of expense you can deduct depends on the facts and your circumstances.

Table 1-1 summarizes travel expenses you may be able to deduct. You may have other deductible travel expenses that aren’t covered there, depending on the facts and your circumstances.

If you have one expense that includes the costs of non-entertainment-related meals, entertainment, and other services (such as lodging or transportation), you must allocate that expense between the cost of non-entertainment-related meals, and entertainment and the cost of other services. You must have a reasonable basis for making this allocation. For example, you must allocate your expenses if a hotel includes one or more meals in its room charge.

If a spouse, dependent, or other individual goes with you (or your employee) on a business trip or to a business convention, you generally can’t deduct their travel expenses.

You can deduct the travel expenses of someone who goes with you if that person:

Is your employee,

Has a bona fide business purpose for the travel, and

Would otherwise be allowed to deduct the travel expenses.

If a business associate travels with you and meets the conditions in (2) and (3) above, you can deduct the travel expenses you have for that person. A business associate is someone with whom you could reasonably expect to actively conduct business. A business associate can be a current or prospective (likely to become) customer, client, supplier, employee, agent, partner, or professional advisor.

Table 1-1. Travel Expenses You Can Deduct

A bona fide business purpose exists if you can prove a real business purpose for the individual's presence. Incidental services, such as typing notes or assisting in entertaining customers, aren’t enough to make the expenses deductible.

You drive to Chicago on business and take your spouse with you. Your spouse isn’t your employee. Your spouse occasionally types notes, performs similar services, and accompanies you to luncheons and dinners. The performance of these services doesn’t establish that your spouse’s presence on the trip is necessary to the conduct of your business. Your spouse’s expenses aren’t deductible.

You pay $199 a day for a double room. A single room costs $149 a day. You can deduct the total cost of driving your car to and from Chicago, but only $149 a day for your hotel room. If both you and your spouse use public transportation, you can only deduct your fare.

You can deduct a portion of the cost of meals if it is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business. Meal and entertainment expenses are discussed in chapter 2 .

You can't deduct expenses for meals that are lavish or extravagant. An expense isn't considered lavish or extravagant if it is reasonable based on the facts and circumstances. Meal expenses won't be disallowed merely because they are more than a fixed dollar amount or because the meals take place at deluxe restaurants, hotels, or resorts.

You can figure your meal expenses using either of the following methods.

Actual cost.

If you are reimbursed for the cost of your meals, how you apply the 50% limit depends on whether your employer's reimbursement plan was accountable or nonaccountable. If you aren’t reimbursed, the 50% limit applies even if the unreimbursed meal expense is for business travel. Chapter 2 discusses the 50% Limit in more detail, and chapter 6 discusses accountable and nonaccountable plans.

You can use the actual cost of your meals to figure the amount of your expense before reimbursement and application of the 50% deduction limit. If you use this method, you must keep records of your actual cost.

Standard Meal Allowance

Generally, you can use the “standard meal allowance” method as an alternative to the actual cost method. It allows you to use a set amount for your daily meals and incidental expenses (M&IE), instead of keeping records of your actual costs. The set amount varies depending on where and when you travel. In this publication, “standard meal allowance” refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance . If you use the standard meal allowance, you must still keep records to prove the time, place, and business purpose of your travel. See the recordkeeping rules for travel in chapter 5 .

The term “incidental expenses” means fees and tips given to porters, baggage carriers, hotel staff, and staff on ships.

Incidental expenses don’t include expenses for laundry, cleaning and pressing of clothing, lodging taxes, costs of telegrams or telephone calls, transportation between places of lodging or business and places where meals are taken, or the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings.

You can use an optional method (instead of actual cost) for deducting incidental expenses only. The amount of the deduction is $5 a day. You can use this method only if you didn’t pay or incur any meal expenses. You can’t use this method on any day that you use the standard meal allowance. This method is subject to the proration rules for partial days. See Travel for days you depart and return , later, in this chapter.

The incidental-expenses-only method isn’t subject to the 50% limit discussed below.

If you use the standard meal allowance method for non-entertainment-related meal expenses and you aren’t reimbursed or you are reimbursed under a nonaccountable plan, you can generally deduct only 50% of the standard meal allowance. If you are reimbursed under an accountable plan and you are deducting amounts that are more than your reimbursements, you can deduct only 50% of the excess amount. The 50% Limit is discussed in more detail in chapter 2, and accountable and nonaccountable plans are discussed in chapter 6.

You can use the standard meal allowance whether you are an employee or self-employed, and whether or not you are reimbursed for your traveling expenses.

You can use the standard meal allowance to figure your meal expenses when you travel in connection with investment and other income-producing property. You can also use it to figure your meal expenses when you travel for qualifying educational purposes. You can’t use the standard meal allowance to figure the cost of your meals when you travel for medical or charitable purposes.

The standard meal allowance is the federal M&IE rate. For travel in 2023, the rate for most small localities in the United States is $59 per day.

Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances.

If you travel to more than one location in one day, use the rate in effect for the area where you stop for sleep or rest. If you work in the transportation industry, however, see Special rate for transportation workers , later.

Per diem rates are listed by the federal government's fiscal year, which runs from October 1 to September 30. You can choose to use the rates from the 2022 fiscal year per diem tables or the rates from the 2023 fiscal year tables, but you must consistently use the same tables for all travel you are reporting on your income tax return for the year. See Transition Rules , later.

The standard meal allowance rates above don’t apply to travel in Alaska, Hawaii, or any other location outside the continental United States. The Department of Defense establishes per diem rates for Alaska, Hawaii, Puerto Rico, American Samoa, Guam, Midway, the Northern Mariana Islands, the U.S. Virgin Islands, Wake Island, and other non-foreign areas outside the continental United States. The Department of State establishes per diem rates for all other foreign areas.

You can use a special standard meal allowance if you work in the transportation industry. You are in the transportation industry if your work:

Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck; and

Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates.

Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year.

For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). You can do so by one of two methods.

Method 1: You can claim 3 / 4 of the standard meal allowance.

Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice.

You are employed in New Orleans as a convention planner. In March, your employer sent you on a 3-day trip to Washington, DC, to attend a planning seminar. You left your home in New Orleans at 10 a.m. on Wednesday and arrived in Washington, DC, at 5:30 p.m. After spending 2 nights there, you flew back to New Orleans on Friday and arrived back home at 8 p.m. Your employer gave you a flat amount to cover your expenses and included it with your wages.

Under Method 1 , you can claim 2½ days of the standard meal allowance for Washington, DC: 3 / 4 of the daily rate for Wednesday and Friday (the days you departed and returned), and the full daily rate for Thursday.

Under Method 2 , you could also use any method that you apply consistently and that is in accordance with reasonable business practice. For example, you could claim 3 days of the standard meal allowance even though a federal employee would have to use Method 1 and be limited to only 2½ days.

Travel in the United States

The following discussion applies to travel in the United States. For this purpose, the United States includes the 50 states and the District of Columbia. The treatment of your travel expenses depends on how much of your trip was business related and on how much of your trip occurred within the United States. See Part of Trip Outside the United States , later.

You can deduct all of your travel expenses if your trip was entirely business related. If your trip was primarily for business and, while at your business destination, you extended your stay for a vacation, made a personal side trip, or had other personal activities, you can deduct only your business-related travel expenses. These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination.

You work in Atlanta and take a business trip to New Orleans in May. Your business travel totals 900 miles round trip. On your way home, you stop in Mobile to visit your parents. You spend $2,165 for the 9 days you are away from home for travel, non-entertainment-related meals, lodging, and other travel expenses. If you hadn’t stopped in Mobile, you would have been gone only 6 days, and your total cost would have been $1,633.50. You can deduct $1,633.50 for your trip, including the cost of round-trip transportation to and from New Orleans. The deduction for your non-entertainment-related meals is subject to the 50% limit on meals mentioned earlier.

If your trip was primarily for personal reasons, such as a vacation, the entire cost of the trip is a nondeductible personal expense. However, you can deduct any expenses you have while at your destination that are directly related to your business.

A trip to a resort or on a cruise ship may be a vacation even if the promoter advertises that it is primarily for business. The scheduling of incidental business activities during a trip, such as viewing videotapes or attending lectures dealing with general subjects, won’t change what is really a vacation into a business trip.

Part of Trip Outside the United States

If part of your trip is outside the United States, use the rules described later in this chapter under Travel Outside the United States for that part of the trip. For the part of your trip that is inside the United States, use the rules for travel in the United States. Travel outside the United States doesn’t include travel from one point in the United States to another point in the United States. The following discussion can help you determine whether your trip was entirely within the United States.

If you travel by public transportation, any place in the United States where that vehicle makes a scheduled stop is a point in the United States. Once the vehicle leaves the last scheduled stop in the United States on its way to a point outside the United States, you apply the rules under Travel Outside the United States , later.

You fly from New York to Puerto Rico with a scheduled stop in Miami. Puerto Rico isn’t considered part of the United States for purposes of travel. You return to New York nonstop. The flight from New York to Miami is in the United States, so only the flight from Miami to Puerto Rico is outside the United States. Because there are no scheduled stops between Puerto Rico and New York, all of the return trip is outside the United States.

Travel by private car in the United States is travel between points in the United States, even though you are on your way to a destination outside the United States.

You travel by car from Denver to Mexico City and return. Your travel from Denver to the border and from the border back to Denver is travel in the United States, and the rules in this section apply. The rules below under Travel Outside the United States apply to your trip from the border to Mexico City and back to the border.

Travel Outside the United States

If any part of your business travel is outside the United States, some of your deductions for the cost of getting to and from your destination may be limited. For this purpose, the United States includes the 50 states and the District of Columbia.

How much of your travel expenses you can deduct depends in part upon how much of your trip outside the United States was business related.

Travel Entirely for Business or Considered Entirely for Business

You can deduct all your travel expenses of getting to and from your business destination if your trip is entirely for business or considered entirely for business.

If you travel outside the United States and you spend the entire time on business activities, you can deduct all of your travel expenses.

Even if you didn’t spend your entire time on business activities, your trip is considered entirely for business if you meet at least one of the following four exceptions.

Your trip is considered entirely for business if you didn’t have substantial control over arranging the trip. The fact that you control the timing of your trip doesn’t, by itself, mean that you have substantial control over arranging your trip.

You don’t have substantial control over your trip if you:

Are an employee who was reimbursed or paid a travel expense allowance, and

Aren’t related to your employer, or

Aren’t a managing executive.

“Related to your employer” is defined later in chapter 6 under Per Diem and Car Allowances .

A “managing executive” is an employee who has the authority and responsibility, without being subject to the veto of another, to decide on the need for the business travel.

A self-employed person generally has substantial control over arranging business trips.

Your trip is considered entirely for business if you were outside the United States for a week or less, combining business and nonbusiness activities. One week means 7 consecutive days. In counting the days, don’t count the day you leave the United States, but do count the day you return to the United States.

You traveled to Brussels primarily for business. You left Denver on Tuesday and flew to New York. On Wednesday, you flew from New York to Brussels, arriving the next morning. On Thursday and Friday, you had business discussions, and from Saturday until Tuesday, you were sightseeing. You flew back to New York, arriving Wednesday afternoon. On Thursday, you flew back to Denver.

Although you were away from your home in Denver for more than a week, you weren’t outside the United States for more than a week. This is because the day you depart doesn’t count as a day outside the United States.

You can deduct your cost of the round-trip flight between Denver and Brussels. You can also deduct the cost of your stay in Brussels for Thursday and Friday while you conducted business. However, you can’t deduct the cost of your stay in Brussels from Saturday through Tuesday because those days were spent on nonbusiness activities.

Your trip is considered entirely for business if:

You were outside the United States for more than a week, and

You spent less than 25% of the total time you were outside the United States on nonbusiness activities.

You flew from Seattle to Tokyo, where you spent 14 days on business and 5 days on personal matters. You then flew back to Seattle. You spent 1 day flying in each direction.

Because only 5 / 21 (less than 25%) of your total time abroad was for nonbusiness activities, you can deduct as travel expenses what it would have cost you to make the trip if you hadn’t engaged in any nonbusiness activity. The amount you can deduct is the cost of the round-trip plane fare and 16 days of non-entertainment-related meals (subject to the 50% Limit ), lodging, and other related expenses.

Your trip is considered entirely for business if you can establish that a personal vacation wasn’t a major consideration, even if you have substantial control over arranging the trip.

Travel Primarily for Business

If you travel outside the United States primarily for business but spend some of your time on other activities, you generally can’t deduct all of your travel expenses. You can only deduct the business portion of your cost of getting to and from your destination. You must allocate the costs between your business and other activities to determine your deductible amount. See Travel allocation rules , later.

If your trip outside the United States was primarily for business, you must allocate your travel time on a day-to-day basis between business days and nonbusiness days. The days you depart from and return to the United States are both counted as days outside the United States.

To figure the deductible amount of your round-trip travel expenses, use the following fraction. The numerator (top number) is the total number of business days outside the United States. The denominator (bottom number) is the total number of business and nonbusiness days of travel.

Your business days include transportation days, days your presence was required, days you spent on business, and certain weekends and holidays.

Count as a business day any day you spend traveling to or from a business destination. However, if because of a nonbusiness activity you don’t travel by a direct route, your business days are the days it would take you to travel a reasonably direct route to your business destination. Extra days for side trips or nonbusiness activities can’t be counted as business days.

Count as a business day any day your presence is required at a particular place for a specific business purpose. Count it as a business day even if you spend most of the day on nonbusiness activities.

If your principal activity during working hours is the pursuit of your trade or business, count the day as a business day. Also, count as a business day any day you are prevented from working because of circumstances beyond your control.

Count weekends, holidays, and other necessary standby days as business days if they fall between business days. But if they follow your business meetings or activity and you remain at your business destination for nonbusiness or personal reasons, don’t count them as business days.

Your tax home is New York City. You travel to Quebec, where you have a business meeting on Friday. You have another meeting on the following Monday. Because your presence was required on both Friday and Monday, they are business days. Because the weekend is between business days, Saturday and Sunday are counted as business days. This is true even though you use the weekend for sightseeing, visiting friends, or other nonbusiness activity.

If, in Example 1 , you had no business in Quebec after Friday, but stayed until Monday before starting home, Saturday and Sunday would be nonbusiness days.

If you stopped for a vacation or other nonbusiness activity either on the way from the United States to your business destination, or on the way back to the United States from your business destination, you must allocate part of your travel expenses to the nonbusiness activity.

The part you must allocate is the amount it would have cost you to travel between the point where travel outside the United States begins and your nonbusiness destination and a return to the point where travel outside the United States ends.

You determine the nonbusiness portion of that expense by multiplying it by a fraction. The numerator (top number) of the fraction is the number of nonbusiness days during your travel outside the United States, and the denominator (bottom number) is the total number of days you spend outside the United States.

You live in New York. On May 4, you flew to Paris to attend a business conference that began on May 5. The conference ended at noon on May 14. That evening, you flew to Dublin where you visited with friends until the afternoon of May 21, when you flew directly home to New York. The primary purpose for the trip was to attend the conference.

If you hadn’t stopped in Dublin, you would have arrived home the evening of May 14. You don’t meet any of the exceptions that would allow you to consider your travel entirely for business. May 4 through May 14 (11 days) are business days and May 15 through May 21 (7 days) are nonbusiness days.

You can deduct the cost of your non-entertainment-related meals (subject to the 50% Limit ), lodging, and other business-related travel expenses while in Paris.

You can’t deduct your expenses while in Dublin. You also can’t deduct 7 / 18 of what it would have cost you to travel round trip between New York and Dublin.

You paid $750 to fly from New York to Paris, $400 to fly from Paris to Dublin, and $700 to fly from Dublin back to New York. Round-trip airfare from New York to Dublin would have been $1,250.

You figure the deductible part of your air travel expenses by subtracting 7 / 18 of the round-trip airfare and other expenses you would have had in traveling directly between New York and Dublin ($1,250 × 7 / 18 = $486) from your total expenses in traveling from New York to Paris to Dublin and back to New York ($750 + $400 + $700 = $1,850).

Your deductible air travel expense is $1,364 ($1,850 − $486).

If you had a vacation or other nonbusiness activity at, near, or beyond your business destination, you must allocate part of your travel expenses to the nonbusiness activity.

The part you must allocate is the amount it would have cost you to travel between the point where travel outside the United States begins and your business destination and a return to the point where travel outside the United States ends.

None of your travel expenses for nonbusiness activities at, near, or beyond your business destination are deductible.

Assume that the dates are the same as in the previous example but that instead of going to Dublin for your vacation, you fly to Venice, Italy, for a vacation.

You can’t deduct any part of the cost of your trip from Paris to Venice and return to Paris. In addition, you can’t deduct 7 / 18 of the airfare and other expenses from New York to Paris and back to New York.

You can deduct 11 / 18 of the round-trip plane fare and other travel expenses from New York to Paris, plus your non-entertainment-related meals (subject to the 50% Limit ), lodging, and any other business expenses you had in Paris. (Assume these expenses total $4,939.) If the round-trip plane fare and other travel-related expenses (such as food during the trip) are $1,750, you can deduct travel costs of $1,069 ( 11 / 18 × $1,750), plus the full $4,939 for the expenses you had in Paris.

You can use another method of counting business days if you establish that it more clearly reflects the time spent on other than business activities outside the United States.

If you travel outside the United States primarily for vacation or for investment purposes, the entire cost of the trip is a nondeductible personal expense. However, if you spend some time attending brief professional seminars or a continuing education program, you can deduct your registration fees and other expenses you have that are directly related to your business.

The university from which you graduated has a continuing education program for members of its alumni association. This program consists of trips to various foreign countries where academic exercises and conferences are set up to acquaint individuals in most occupations with selected facilities in several regions of the world. However, none of the conferences are directed toward specific occupations or professions. It is up to each participant to seek out specialists and organizational settings appropriate to their occupational interests.

Three-hour sessions are held each day over a 5-day period at each of the selected overseas facilities where participants can meet with individual practitioners. These sessions are composed of a variety of activities including workshops, mini-lectures, roleplaying, skill development, and exercises. Professional conference directors schedule and conduct the sessions. Participants can choose those sessions they wish to attend.

You can participate in this program because you are a member of the alumni association. You and your family take one of the trips. You spend about 2 hours at each of the planned sessions. The rest of the time you go touring and sightseeing with your family. The trip lasts less than 1 week.

Your travel expenses for the trip aren’t deductible since the trip was primarily a vacation. However, registration fees and any other incidental expenses you have for the five planned sessions you attended that are directly related and beneficial to your business are deductible business expenses. These expenses should be specifically stated in your records to ensure proper allocation of your deductible business expenses.

Luxury Water Travel

If you travel by ocean liner, cruise ship, or other form of luxury water transportation for business purposes, there is a daily limit on the amount you can deduct. The limit is twice the highest federal per diem rate allowable at the time of your travel. (Generally, the federal per diem is the amount paid to federal government employees for daily living expenses when they travel away from home within the United States for business purposes.)

The highest federal per diem rate allowed and the daily limit for luxury water travel in 2023 are shown in the following table.

You are a travel agent and traveled by ocean liner from New York to London, England, on business in May. Your expense for the 6-day cruise was $6,200. Your deduction for the cruise can’t exceed $4,776 (6 days × $796 daily limit).

If your expenses for luxury water travel include separately stated amounts for meals or entertainment, those amounts are subject to the 50% limit on non-entertainment-related meals and entertainment before you apply the daily limit. For a discussion of the 50% Limit , see chapter 2.

In the previous example, your luxury water travel had a total cost of $6,200. Of that amount, $3,700 was separately stated as non-entertainment-related meals and $1,000 was separately stated as entertainment. Considering that you are self-employed, you aren’t reimbursed for any of your travel expenses. You figure your deductible travel expenses as follows.

If your meal or entertainment charges aren’t separately stated or aren’t clearly identifiable, you don’t have to allocate any portion of the total charge to meals or entertainment.

The daily limit on luxury water travel (discussed earlier) doesn’t apply to expenses you have to attend a convention, seminar, or meeting on board a cruise ship. See Cruise Ships , later, under Conventions.

Conventions

You can deduct your travel expenses when you attend a convention if you can show that your attendance benefits your trade or business. You can’t deduct the travel expenses for your family.

If the convention is for investment, political, social, or other purposes unrelated to your trade or business, you can’t deduct the expenses.

The convention agenda or program generally shows the purpose of the convention. You can show your attendance at the convention benefits your trade or business by comparing the agenda with the official duties and responsibilities of your position. The agenda doesn’t have to deal specifically with your official duties and responsibilities; it will be enough if the agenda is so related to your position that it shows your attendance was for business purposes.

Conventions Held Outside the North American Area

You can’t deduct expenses for attending a convention, seminar, or similar meeting held outside the North American area unless:

The meeting is directly related to the active conduct of your trade or business, and

It is as reasonable to hold the meeting outside the North American area as within the North American area. See Reasonableness test , later.

The North American area includes the following locations.

The following factors are taken into account to determine if it was as reasonable to hold the meeting outside the North American area as within the North American area.

The purpose of the meeting and the activities taking place at the meeting.

The purposes and activities of the sponsoring organizations or groups.

The homes of the active members of the sponsoring organizations and the places at which other meetings of the sponsoring organizations or groups have been or will be held.

Other relevant factors you may present.

You can deduct up to $2,000 per year of your expenses of attending conventions, seminars, or similar meetings held on cruise ships. All ships that sail are considered cruise ships.

You can deduct these expenses only if all of the following requirements are met.

The convention, seminar, or meeting is directly related to the active conduct of your trade or business.

The cruise ship is a vessel registered in the United States.

All of the cruise ship's ports of call are in the United States or in territories of the United States.

You attach to your return a written statement signed by you that includes information about:

The total days of the trip (not including the days of transportation to and from the cruise ship port),

The number of hours each day that you devoted to scheduled business activities, and

A program of the scheduled business activities of the meeting.

You attach to your return a written statement signed by an officer of the organization or group sponsoring the meeting that includes:

A schedule of the business activities of each day of the meeting, and

The number of hours you attended the scheduled business activities.

2. Meals and Entertainment

You can no longer take a deduction for any expense related to activities generally considered entertainment, amusement, or recreation. You can continue to deduct 50% of the cost of business meals if you (or your employee) are present and the food or beverages aren't considered lavish or extravagant.

Entertainment

Entertainment—defined.

Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. Examples include entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; on yachts; or on hunting, fishing, vacation, and similar trips. Entertainment may also include meeting personal, living, or family needs of individuals, such as providing meals, a hotel suite, or a car to customers or their families.

Your kind of business may determine if a particular activity is considered entertainment. For example, if you are a dress designer and have a fashion show to introduce your new designs to store buyers, the show generally isn’t considered entertainment. This is because fashion shows are typical in your business. But, if you are an appliance distributor and hold a fashion show for the spouses of your retailers, the show is generally considered entertainment.

If you have one expense that includes the costs of entertainment and other services (such as lodging or transportation), you must allocate that expense between the cost of entertainment and the cost of other services. You must have a reasonable basis for making this allocation. For example, you must allocate your expenses if a hotel includes entertainment in its lounge on the same bill with your room charge.

In general, entertainment expenses are nondeductible. However, there are a few exceptions to the general rule, including:

Entertainment treated as compensation on your originally filed tax returns (and treated as wages to your employees);

Recreational expenses for employees such as a holiday party or a summer picnic;

Expenses related to attending business meetings or conventions of certain exempt organizations such as business leagues, chambers of commerce, professional associations, etc.; and

Entertainment sold to customers. For example, if you run a nightclub, your expenses for the entertainment you furnish to your customers, such as a floor show, aren’t subject to the nondeductible rules.

Examples of Nondeductible Entertainment

Generally, you can't deduct any expense for an entertainment event. This includes expenses for entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; on yachts; or on hunting, fishing, vacation, and similar trips.

Generally, you can’t deduct any expense for the use of an entertainment facility. This includes expenses for depreciation and operating costs such as rent, utilities, maintenance, and protection.

An entertainment facility is any property you own, rent, or use for entertainment. Examples include a yacht, hunting lodge, fishing camp, swimming pool, tennis court, bowling alley, car, airplane, apartment, hotel suite, or home in a vacation resort.

You can’t deduct dues (including initiation fees) for membership in any club organized for business, pleasure, recreation, or other social purposes.

This rule applies to any membership organization if one of its principal purposes is either:

To conduct entertainment activities for members or their guests; or

To provide members or their guests with access to entertainment facilities, discussed later.

The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. You can’t deduct dues paid to:

Country clubs,

Golf and athletic clubs,

Airline clubs,

Hotel clubs, and

Clubs operated to provide meals under circumstances generally considered to be conducive to business discussions.

Any item that might be considered either a gift or entertainment will generally be considered entertainment. However, if you give a customer packaged food or beverages that you intend the customer to use at a later date, treat it as a gift.

As discussed above, entertainment expenses are generally nondeductible. However, you may continue to deduct 50% of the cost of business meals if you (or an employee) is present and the food or beverages are not considered lavish or extravagant. The meals may be provided to a current or potential business customer, client, consultant, or similar business contact.

Food and beverages that are provided during entertainment events are not considered entertainment if purchased separately from the entertainment, or if the cost of the food and beverages is stated separately from the cost of the entertainment on one or more bills, invoices, or receipts. However, the entertainment disallowance rule may not be circumvented through inflating the amount charged for food and beverages.

Any allowed expense must be ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your business. An expense doesn't have to be required to be considered necessary. Expenses must not be lavish or extravagant. An expense isn't considered lavish or extravagant if it is reasonable based on the facts and circumstances.

For each example, assume that the food and beverage expenses are ordinary and necessary expenses under section 162(a) paid or incurred during the tax year in carrying on a trade or business and are not lavish or extravagant under the circumstances. Also assume that the taxpayer and the business contact are not engaged in a trade or business that has any relation to the entertainment activity.

Taxpayer A invites B, a business contact, to a baseball game. A purchases tickets for A and B to attend the game. While at the game, A buys hot dogs and drinks for A and B. The baseball game is entertainment as defined in Regulations section 1.274-11(b)(1)(i) and, thus, the cost of the game tickets is an entertainment expense and is not deductible by A. The cost of the hot dogs and drinks, which are purchased separately from the game tickets, is not an entertainment expense and is not subject to the section 274(a)(1) disallowance. Therefore, A may deduct 50% of the expenses associated with the hot dogs and drinks purchased at the game.

Taxpayer C invites D, a business contact, to a basketball game. C purchases tickets for C and D to attend the game in a suite, where they have access to food and beverages. The cost of the basketball game tickets, as stated on the invoice, includes the food and beverages. The basketball game is entertainment as defined in Regulations section 1.274-11(b)(1)(i) and, thus, the cost of the game tickets is an entertainment expense and is not deductible by C. The cost of the food and beverages, which are not purchased separately from the game tickets, is not stated separately on the invoice. Thus, the cost of the food and beverages is also an entertainment expense that is subject to the section 274(a)(1) disallowance. Therefore, C may not deduct any of the expenses associated with the basketball game.

Assume the same facts as in Example 2 , except that the invoice for the basketball game tickets separately states the cost of the food and beverages. As in Example 2 , the basketball game is entertainment as defined in Regulations section 1.274-2(b)(1)(i) and, thus, the cost of the game tickets, other than the cost of the food and beverages, is an entertainment expense and is not deductible by C. However, the cost of the food and beverages, which is stated separately on the invoice for the game tickets, is not an entertainment expense and is not subject to the section 274(a)(1) disallowance. Therefore, C may deduct 50% of the expenses associated with the food and beverages provided at the game.

In general, you can deduct only 50% of your business-related meal expenses, unless an exception applies. (If you are subject to the Department of Transportation's “hours of service” limits, you can deduct 80% of your business-related meal expenses. See Individuals subject to hours of service limits , later.)

The 50% limit applies to employees or their employers, and to self-employed persons (including independent contractors) or their clients, depending on whether the expenses are reimbursed.

Examples of meals might include:

Meals while traveling away from home (whether eating alone or with others) on business, or

Meal at a business convention or business league meeting.

Figure A. Does the 50% Limit Apply to Your Expenses?

There are exceptions to these rules. See Exceptions to the 50% Limit for Meals , later.

Figure A. Does the 50% limit apply to Your Expenses?TAs for Figure A are: Notice 87-23; Form 2106 instructions

Summary: This is a flowchart used to determine if employees and self-employed persons need to put a 50% limit on their business expense deductions.

This is the starting of the flowchart.

Decision (1)

Were your meal and entertainment expenses reimbursed? (Count only reimbursements your employer didn’t include in box 1 of your Form W-2. If self-employed, count only reimbursements from clients or customers that aren’t included on Form 1099-MISC, Miscellaneous Income.)

Decision (2)

If an employee, did you adequately account to your employer under an accountable plan? If self-employed, did you provide the payer with adequate records? (See Chapter 6.)

Decision (3)

Did your expenses exceed the reimbursement?

Decision (4)

Process (a)

Your meal and entertainment expenses are NOT subject to the limitations. However, since the reimbursement wasn’t treated as wages or as other taxable income, you can’t deduct the expenses.

Process (b)

Your nonentertainment meal expenses ARE subject to the 50% limit. Your entertainment expenses are nondeductible.

This is the ending of the flowchart.

Please click here for the text description of the image.

Taxes and tips relating to a business meal are included as a cost of the meal and are subject to the 50% limit. However, the cost of transportation to and from the meal is not treated as part of the cost and would not be subject to the limit.

The 50% limit on meal expenses applies if the expense is otherwise deductible and isn’t covered by one of the exceptions discussed later. Figure A can help you determine if the 50% limit applies to you.

The 50% limit also applies to certain meal expenses that aren’t business related. It applies to meal expenses you have for the production of income, including rental or royalty income. It also applies to the cost of meals included in deductible educational expenses.

The 50% limit will apply after determining the amount that would otherwise qualify for a deduction. You first have to determine the amount of meal expenses that would be deductible under the other rules discussed in this publication.

If a group of business acquaintances takes turns picking up each others' meal checks primarily for personal reasons, without regard to whether any business purposes are served, no member of the group can deduct any part of the expense.

You spend $200 (including tax and tip) for a business meal. If $110 of that amount isn’t allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. Your deduction can’t be more than $45 (50% (0.50) × $90).

You purchase two tickets to a concert for $200 for you and your client. Your deduction is zero because no deduction is allowed for entertainment expenses.

Exception to the 50% Limit for Meals

Your meal expense isn’t subject to the 50% limit if the expense meets one of the following exceptions.

In general, expenses for goods, services, and facilities, to the extent the expenses are treated by the taxpayer, with respect to entertainment, amusement, or recreation, as compensation to an employee and as wages to the employee for tax purposes.

If you are an employee, you aren’t subject to the 50% limit on expenses for which your employer reimburses you under an accountable plan. Accountable plans are discussed in chapter 6.

If you are self-employed, your deductible meal expenses aren’t subject to the 50% limit if all of the following requirements are met.

You have these expenses as an independent contractor.

Your customer or client reimburses you or gives you an allowance for these expenses in connection with services you perform.

You provide adequate records of these expenses to your customer or client. (See chapter 5 .)

In this case, your client or customer is subject to the 50% limit on the expenses.

You are a self-employed attorney who adequately accounts for meal expenses to a client who reimburses you for these expenses. You aren’t subject to the limitation on meal expenses. If the client can deduct the expenses, the client is subject to the 50% limit.

If you (as an independent contractor) have expenses for meals related to providing services for a client but don’t adequately account for and seek reimbursement from the client for those expenses, you are subject to the 50% limit on non-entertainment-related meals and the entertainment-related meal expenses are nondeductible to you.

You aren't subject to the 50% limit for expenses for recreational, social, or similar activities (including facilities) such as a holiday party or a summer picnic.

You aren’t subject to the 50% limit if you provide meals to the general public as a means of advertising or promoting goodwill in the community. For example, neither the expense of sponsoring a television or radio show nor the expense of distributing free food and beverages to the general public is subject to the 50% limit.

You aren’t subject to the 50% limit if you actually sell meals to the public. For example, if you run a restaurant, your expense for the food you furnish to your customers isn’t subject to the 50% limit.

You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. The percentage is 80%.

Individuals subject to the Department of Transportation's “hours of service” limits include the following persons.

Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations.

Interstate truck operators and bus drivers who are under Department of Transportation regulations.

Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations.

Certain merchant mariners who are under Coast Guard regulations.

If you give gifts in the course of your trade or business, you may be able to deduct all or part of the cost. This chapter explains the limits and rules for deducting the costs of gifts.

You can deduct no more than $25 for business gifts you give directly or indirectly to each person during your tax year. A gift to a company that is intended for the eventual personal use or benefit of a particular person or a limited class of people will be considered an indirect gift to that particular person or to the individuals within that class of people who receive the gift.

If you give a gift to a member of a customer's family, the gift is generally considered to be an indirect gift to the customer. This rule doesn’t apply if you have a bona fide, independent business connection with that family member and the gift isn’t intended for the customer's eventual use.

If you and your spouse both give gifts, both of you are treated as one taxpayer. It doesn’t matter whether you have separate businesses, are separately employed, or whether each of you has an independent connection with the recipient. If a partnership gives gifts, the partnership and the partners are treated as one taxpayer.

You sell products to a local company. You and your spouse gave the local company three gourmet gift baskets to thank them for their business. You and your spouse paid $80 for each gift basket, or $240 total. Three of the local company's executives took the gift baskets home for their families' use. You and your spouse have no independent business relationship with any of the executives' other family members. You and your spouse can deduct a total of $75 ($25 limit × 3) for the gift baskets.

Incidental costs, such as engraving on jewelry, or packaging, insuring, and mailing, are generally not included in determining the cost of a gift for purposes of the $25 limit.

A cost is incidental only if it doesn’t add substantial value to the gift. For example, the cost of gift wrapping is an incidental cost. However, the purchase of an ornamental basket for packaging fruit isn’t an incidental cost if the value of the basket is substantial compared to the value of the fruit.

The following items aren’t considered gifts for purposes of the $25 limit.

An item that costs $4 or less and:

Has your name clearly and permanently imprinted on the gift, and

Is one of a number of identical items you widely distribute. Examples include pens, desk sets, and plastic bags and cases.

Signs, display racks, or other promotional material to be used on the business premises of the recipient.

Figure B. When Are Transportation Expenses Deductible?

Most employees and self-employed persons can use this chart. (Don’t use this chart if your home is your principal place of business. See Office in the home , later.)

Figure B. When Are Local Transportation Expenses Deductible?TAs for Figure B are: Reg 1.162-1(a); RR 55–109; RR 94–47

Summary: This illustration depicts the rules used to determine if transportation expenses are deductible.

The image then lists definitions for words used in the graphic:

Any item that might be considered either a gift or entertainment will generally be considered entertainment. However, if you give a customer packaged food or beverages you intend the customer to use at a later date, treat it as a gift.

4. Transportation

This chapter discusses expenses you can deduct for business transportation when you aren’t traveling away from home , as defined in chapter 1. These expenses include the cost of transportation by air, rail, bus, taxi, etc., and the cost of driving and maintaining your car.

Transportation expenses include the ordinary and necessary costs of all of the following.

Getting from one workplace to another in the course of your business or profession when you are traveling within the city or general area that is your tax home. Tax home is defined in chapter 1.

Visiting clients or customers.

Going to a business meeting away from your regular workplace.

Getting from your home to a temporary workplace when you have one or more regular places of work. These temporary workplaces can be either within the area of your tax home or outside that area.

Daily transportation expenses you incur while traveling from home to one or more regular places of business are generally nondeductible commuting expenses. However, there may be exceptions to this general rule. You can deduct daily transportation expenses incurred going between your residence and a temporary work station outside the metropolitan area where you live. Also, daily transportation expenses can be deducted if (1) you have one or more regular work locations away from your residence; or (2) your residence is your principal place of business and you incur expenses going between the residence and another work location in the same trade or business, regardless of whether the work is temporary or permanent and regardless of the distance.

Illustration of transportation expenses.

Figure B above illustrates the rules that apply for deducting transportation expenses when you have a regular or main job away from your home. You may want to refer to it when deciding whether you can deduct your transportation expenses.

If you have one or more regular work locations away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location, regardless of distance.

If your employment at a work location is realistically expected to last (and does in fact last) for 1 year or less, the employment is temporary unless there are facts and circumstances that would indicate otherwise.

If your employment at a work location is realistically expected to last for more than 1 year or if there is no realistic expectation that the employment will last for 1 year or less, the employment isn’t temporary, regardless of whether it actually lasts for more than 1 year.

If employment at a work location initially is realistically expected to last for 1 year or less, but at some later date the employment is realistically expected to last more than 1 year, that employment will be treated as temporary (unless there are facts and circumstances that would indicate otherwise) until your expectation changes. It won’t be treated as temporary after the date you determine it will last more than 1 year.

If the temporary work location is beyond the general area of your regular place of work and you stay overnight, you are traveling away from home. You may have deductible travel expenses, as discussed in chapter 1 .

If you have no regular place of work but ordinarily work in the metropolitan area where you live, you can deduct daily transportation costs between home and a temporary work site outside that metropolitan area.

Generally, a metropolitan area includes the area within the city limits and the suburbs that are considered part of that metropolitan area.

You can’t deduct daily transportation costs between your home and temporary work sites within your metropolitan area. These are nondeductible commuting expenses.

If you work at two places in 1 day, whether or not for the same employer, you can deduct the expense of getting from one workplace to the other. However, if for some personal reason you don’t go directly from one location to the other, you can’t deduct more than the amount it would have cost you to go directly from the first location to the second.

Transportation expenses you have in going between home and a part-time job on a day off from your main job are commuting expenses. You can’t deduct them.

A meeting of an Armed Forces reserve unit is a second place of business if the meeting is held on a day on which you work at your regular job. You can deduct the expense of getting from one workplace to the other as just discussed under Two places of work .

You usually can’t deduct the expense if the reserve meeting is held on a day on which you don’t work at your regular job. In this case, your transportation is generally a nondeductible commuting expense. However, you can deduct your transportation expenses if the location of the meeting is temporary and you have one or more regular places of work.

If you ordinarily work in a particular metropolitan area but not at any specific location and the reserve meeting is held at a temporary location outside that metropolitan area, you can deduct your transportation expenses.

If you travel away from home overnight to attend a guard or reserve meeting, you can deduct your travel expenses. These expenses are discussed in chapter 1 .

If you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you may be able to deduct some of your reserve-related travel costs as an adjustment to gross income rather than as an itemized deduction. For more information, see Armed Forces Reservists Traveling More Than 100 Miles From Home under Special Rules in chapter 6.

You can’t deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. These costs are personal commuting expenses. You can’t deduct commuting expenses no matter how far your home is from your regular place of work. You can’t deduct commuting expenses even if you work during the commuting trip.

You sometimes use your cell phone to make business calls while commuting to and from work. Sometimes business associates ride with you to and from work, and you have a business discussion in the car. These activities don’t change the trip from personal to business. You can’t deduct your commuting expenses.

Fees you pay to park your car at your place of business are nondeductible commuting expenses. You can, however, deduct business-related parking fees when visiting a customer or client.

Putting display material that advertises your business on your car doesn’t change the use of your car from personal use to business use. If you use this car for commuting or other personal uses, you still can’t deduct your expenses for those uses.

You can’t deduct the cost of using your car in a nonprofit car pool. Don’t include payments you receive from the passengers in your income. These payments are considered reimbursements of your expenses. However, if you operate a car pool for a profit, you must include payments from passengers in your income. You can then deduct your car expenses (using the rules in this publication).

Hauling tools or instruments in your car while commuting to and from work doesn’t make your car expenses deductible. However, you can deduct any additional costs you have for hauling tools or instruments (such as for renting a trailer you tow with your car).

If you get your work assignments at a union hall and then go to your place of work, the costs of getting from the union hall to your place of work are nondeductible commuting expenses. Although you need the union to get your work assignments, you are employed where you work, not where the union hall is located.

If you have an office in your home that qualifies as a principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. (See Pub. 587, Business Use of Your Home, for information on determining if your home office qualifies as a principal place of business.)

The following examples show when you can deduct transportation expenses based on the location of your work and your home.

You regularly work in an office in the city where you live. Your employer sends you to a 1-week training session at a different office in the same city. You travel directly from your home to the training location and return each day. You can deduct the cost of your daily round-trip transportation between your home and the training location.

Your principal place of business is in your home. You can deduct the cost of round-trip transportation between your qualifying home office and your client's or customer's place of business.

You have no regular office, and you don’t have an office in your home. In this case, the location of your first business contact inside the metropolitan area is considered your office. Transportation expenses between your home and this first contact are nondeductible commuting expenses. Transportation expenses between your last business contact and your home are also nondeductible commuting expenses. While you can’t deduct the costs of these trips, you can deduct the costs of going from one client or customer to another.

Car Expenses

If you use your car for business purposes, you may be able to deduct car expenses. You can generally use one of the two following methods to figure your deductible expenses.

Actual car expenses.

The cost of using your car as an employee, whether measured using actual expenses or the standard mileage rate, will no longer be allowed to be claimed as an unreimbursed employee travel expense as a miscellaneous itemized deduction due to the suspension of miscellaneous itemized deductions that are subject to the 2% floor under section 67(a). The suspension applies to tax years beginning after December 2017 and before January 2026. Deductions for expenses that are deductible in determining adjusted gross income are not suspended. For example, Armed Forces reservists, qualified performing artists, and fee-basis state or local government officials are allowed to deduct unreimbursed employee travel expenses as an adjustment to total income on Schedule 1 (Form 1040), line 12.

If you use actual expenses to figure your deduction for a car you lease, there are rules that affect the amount of your lease payments you can deduct. See Leasing a Car , later.

In this publication, “car” includes a van, pickup, or panel truck. For the definition of “car” for depreciation purposes, see Car defined under Actual Car Expenses , later.

Standard Mileage Rate

For 2023, the standard mileage rate for the cost of operating your car for business use is 65.5 cents ($0.655) per mile.

You can generally use the standard mileage rate whether or not you are reimbursed and whether or not any reimbursement is more or less than the amount figured using the standard mileage rate. See chapter 6 for more information on reimbursements .

If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Then, in later years, you can choose to use either the standard mileage rate or actual expenses.

If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period. For leases that began on or before December 31, 1997, the standard mileage rate must be used for the entire portion of the lease period (including renewals) that is after 1997.

You must make the choice to use the standard mileage rate by the due date (including extensions) of your return. You can’t revoke the choice. However, in later years, you can switch from the standard mileage rate to the actual expenses method. If you change to the actual expenses method in a later year, but before your car is fully depreciated, you have to estimate the remaining useful life of the car and use straight line depreciation for the car’s remaining estimated useful life, subject to depreciation limits (discussed later).

For more information about depreciation included in the standard mileage rate, see Exception under Methods of depreciation , later.

You can’t use the standard mileage rate if you:

Use five or more cars at the same time (such as in fleet operations);

Claimed a depreciation deduction for the car using any method other than straight line for the car’s estimated useful life;

Used the Modified Accelerated Cost Recovery System (MACRS) (as discussed later under Depreciation Deduction );

Claimed a section 179 deduction (discussed later) on the car;

Claimed the special depreciation allowance on the car; or

Claimed actual car expenses after 1997 for a car you leased.

You can elect to use the standard mileage rate if you used a car for hire (such as a taxi) unless the standard mileage rate is otherwise not allowed, as discussed above.

If you own or lease five or more cars that are used for business at the same time, you can’t use the standard mileage rate for the business use of any car. However, you may be able to deduct your actual expenses for operating each of the cars in your business. See Actual Car Expenses , later, for information on how to figure your deduction.

You aren’t using five or more cars for business at the same time if you alternate using (use at different times) the cars for business.

The following examples illustrate the rules for when you can and can’t use the standard mileage rate for five or more cars.

A salesperson owns three cars and two vans that they alternate using for calling on their customers. The salesperson can use the standard mileage rate for the business mileage of the three cars and the two vans because they don’t use them at the same time.

You and your employees use your four pickup trucks in your landscaping business. During the year, you traded in two of your old trucks for two newer ones. You can use the standard mileage rate for the business mileage of all six of the trucks you owned during the year.

You own a repair shop and an insurance business. You and your employees use your two pickup trucks and van for the repair shop. You alternate using your two cars for the insurance business. No one else uses the cars for business purposes. You can use the standard mileage rate for the business use of the pickup trucks, the van, and the cars because you never have more than four vehicles used for business at the same time.

You own a car and four vans that are used in your housecleaning business. Your employees use the vans, and you use the car to travel to various customers. You can’t use the standard mileage rate for the car or the vans. This is because all five vehicles are used in your business at the same time. You must use actual expenses for all vehicles.

If you are an employee, you can’t deduct any interest paid on a car loan. This applies even if you use the car 100% for business as an employee.

However, if you are self-employed and use your car in your business, you can deduct that part of the interest expense that represents your business use of the car. For example, if you use your car 60% for business, you can deduct 60% of the interest on Schedule C (Form 1040). You can’t deduct the part of the interest expense that represents your personal use of the car.

If you itemize your deductions on Schedule A (Form 1040), you can deduct on line 5c state and local personal property taxes on motor vehicles. You can take this deduction even if you use the standard mileage rate or if you don’t use the car for business.

If you are self-employed and use your car in your business, you can deduct the business part of state and local personal property taxes on motor vehicles on Schedule C (Form 1040), or Schedule F (Form 1040). If you itemize your deductions, you can include the remainder of your state and local personal property taxes on the car on Schedule A (Form 1040).

In addition to using the standard mileage rate, you can deduct any business-related parking fees and tolls. (Parking fees you pay to park your car at your place of work are nondeductible commuting expenses.)

If you sell, trade in, or otherwise dispose of your car, you may have a gain or loss on the transaction or an adjustment to the basis of your new car. See Disposition of a Car , later.

Actual Car Expenses

If you don’t use the standard mileage rate, you may be able to deduct your actual car expenses.

Actual car expenses include:

If you have fully depreciated a car that you still use in your business, you can continue to claim your other actual car expenses. Continue to keep records, as explained later in chapter 5 .

If you use your car for both business and personal purposes, you must divide your expenses between business and personal use. You can divide your expense based on the miles driven for each purpose.

You are a contractor and drive your car 20,000 miles during the year: 12,000 miles for business use and 8,000 miles for personal use. You can claim only 60% (12,000 ÷ 20,000) of the cost of operating your car as a business expense.

If you use a vehicle provided by your employer for business purposes, you can deduct your actual unreimbursed car expenses. You can’t use the standard mileage rate. See Vehicle Provided by Your Employer in chapter 6.

If you are an employee, you can’t deduct any interest paid on a car loan. This interest is treated as personal interest and isn’t deductible. If you are self-employed and use your car in that business, see Interest , earlier, under Standard Mileage Rate.

If you are an employee, you can deduct personal property taxes paid on your car if you itemize deductions. Enter the amount paid on Schedule A (Form 1040), line 5c.

Generally, sales taxes on your car are part of your car's basis and are recovered through depreciation, discussed later.

You can’t deduct fines you pay or collateral you forfeit for traffic violations.

If your car is damaged, destroyed, or stolen, you may be able to deduct part of the loss not covered by insurance. See Pub. 547, Casualties, Disasters, and Thefts, for information on deducting a loss on your car.

Generally, the cost of a car, plus sales tax and improvements, is a capital expense. Because the benefits last longer than 1 year, you generally can’t deduct a capital expense. However, you can recover this cost through the section 179 deduction (the deduction allowed by section 179 of the Internal Revenue Code), special depreciation allowance, and depreciation deductions. Depreciation allows you to recover the cost over more than 1 year by deducting part of it each year. The section 179 deduction , special depreciation allowance , and depreciation deductions are discussed later.

Generally, there are limits on these deductions. Special rules apply if you use your car 50% or less in your work or business.

You can claim a section 179 deduction and use a depreciation method other than straight line only if you don’t use the standard mileage rate to figure your business-related car expenses in the year you first place a car in service.

If, in the year you first place a car in service, you claim either a section 179 deduction or use a depreciation method other than straight line for its estimated useful life, you can’t use the standard mileage rate on that car in any future year.

For depreciation purposes, a car is any four-wheeled vehicle (including a truck or van) made primarily for use on public streets, roads, and highways. Its unloaded gross vehicle weight (for trucks and vans, gross vehicle weight) must not be more than 6,000 pounds. A car includes any part, component, or other item physically attached to it or usually included in the purchase price.

A car doesn’t include:

An ambulance, hearse, or combination ambulance-hearse used directly in a business;

A vehicle used directly in the business of transporting persons or property for pay or hire; or

A truck or van that is a qualified nonpersonal use vehicle.

These are vehicles that by their nature aren’t likely to be used more than a minimal amount for personal purposes. They include trucks and vans that have been specially modified so that they aren’t likely to be used more than a minimal amount for personal purposes, such as by installation of permanent shelving and painting the vehicle to display advertising or the company's name. Delivery trucks with seating only for the driver, or only for the driver plus a folding jump seat, are qualified nonpersonal use vehicles.

See Depreciation Deduction , later, for more information on how to depreciate your vehicle.

Section 179 Deduction

You can elect to recover all or part of the cost of a car that is qualifying section 179 property, up to a limit, by deducting it in the year you place the property in service. This is the section 179 deduction. If you elect the section 179 deduction, you must reduce your depreciable basis in the car by the amount of the section 179 deduction.

You can claim the section 179 deduction only in the year you place the car in service. For this purpose, a car is placed in service when it is ready and available for a specifically assigned use in a trade or business. Even if you aren’t using the property, it is in service when it is ready and available for its specifically assigned use.

A car first used for personal purposes can’t qualify for the deduction in a later year when its use changes to business.

In 2022, you bought a new car and used it for personal purposes. In 2023, you began to use it for business. Changing its use to business use doesn’t qualify the cost of your car for a section 179 deduction in 2023. However, you can claim a depreciation deduction for the business use of the car starting in 2023. See Depreciation Deduction , later.

You must use the property more than 50% for business to claim any section 179 deduction. If you used the property more than 50% for business, multiply the cost of the property by the percentage of business use. The result is the cost of the property that can qualify for the section 179 deduction.

You purchased a new car in April 2023 for $24,500 and used it 60% for business. Based on your business usage, the total cost of your car that qualifies for the section 179 deduction is $14,700 ($24,500 cost × 60% (0.60) business use). But see Limit on total section 179, special depreciation allowance, and depreciation deduction , discussed later.

There are limits on:

The amount of the section 179 deduction;

The section 179 deduction for sport utility and certain other vehicles; and

The total amount of the section 179 deduction, special depreciation allowance, and depreciation deduction (discussed later ) you can claim for a qualified property.

For tax years beginning in 2023, the total amount you can elect to deduct under section 179 can’t be more than $1,160,000.

If the cost of your section 179 property placed in service in tax years beginning in 2023 is over $2,890,000, you must reduce the $1,160,000 dollar limit (but not below zero) by the amount of cost over $2,890,000. If the cost of your section 179 property placed in service during tax years beginning in 2023 is $4,050,000 or more, you can’t take a section 179 deduction.

The total amount you can deduct under section 179 each year after you apply the limits listed above cannot be more than the taxable income from the active conduct of any trade or business during the year.

If you are married and file a joint return, you and your spouse are treated as one taxpayer in determining any reduction to the dollar limit, regardless of which of you purchased the property or placed it in service.

If you and your spouse file separate returns, you are treated as one taxpayer for the dollar limit. You must allocate the dollar limit (after any reduction) between you.

For more information on the above section 179 deduction limits, see Pub. 946, How To Depreciate Property.

You cannot elect to deduct more than $28,900 of the cost of any heavy sport utility vehicle (SUV) and certain other vehicles placed in service during the tax years beginning in 2023. This rule applies to any four-wheeled vehicle primarily designed or used to carry passengers over public streets, roads, or highways that isn’t subject to any of the passenger automobile limits explained under Depreciation Limits , later, and that is rated at more than 6,000 pounds gross vehicle weight and not more than 14,000 pounds gross vehicle weight. However, the $28,900 limit doesn’t apply to any vehicle:

Designed to have a seating capacity of more than nine persons behind the driver's seat;

Equipped with a cargo area of at least 6 feet in interior length that is an open area or is designed for use as an open area but is enclosed by a cap and isn’t readily accessible directly from the passenger compartment; or

That has an integral enclosure, fully enclosing the driver compartment and load carrying device, doesn’t have seating rearward of the driver's seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield.

The first-year limit on the depreciation deduction, special depreciation allowance, and section 179 deduction for vehicles acquired before September 28, 2017, and placed in service during 2023, is $12,200. The first-year limit on depreciation, special depreciation allowance, and section 179 deduction for vehicles acquired after September 27, 2017, and placed in service during 2023 increases to $20,200. If you elect not to claim a special depreciation allowance for a vehicle placed in service in 2023, the amount increases to $12,200. The limit is reduced if your business use of the vehicle is less than 100%. See Depreciation Limits , later, for more information.

In the earlier example under More than 50% business use requirement , you had a car with a cost (for purposes of the section 179 deduction) of $14,700. However, based on your business usage of the car, the total of your section 179 deduction, special depreciation allowance, and depreciation deductions is limited to $12,120 ($20,200 limit x 60% (0.60) business use) because the car was acquired after September 27, 2017, and placed in service during 2023.

For purposes of the section 179 deduction, the cost of the car doesn’t include any amount figured by reference to any other property held by you at any time. For example, if you buy a car as a replacement for a car that was stolen or that was destroyed in a casualty loss, and you use section 1033 to determine the basis in your replacement vehicle, your cost for purposes of the section 179 deduction doesn’t include your adjusted basis in the relinquished car. In that case, your cost includes only the cash you paid.

The amount of the section 179 deduction reduces your basis in your car. If you choose the section 179 deduction, you must subtract the amount of the deduction from the cost of your car. The resulting amount is the basis in your car you use to figure your depreciation deduction.

If you want to take the section 179 deduction, you must make the election in the tax year you place the car in service for business or work.

Employees use Form 2106, Employee Business Expenses, to make the election and report the section 179 deduction. All others use Form 4562, Depreciation and Amortization, to make an election.

File the appropriate form with either of the following.

Your original tax return filed for the year the property was placed in service (whether or not you file it timely).

An amended return filed within the time prescribed by law. An election made on an amended return must specify the item of section 179 property to which the election applies and the part of the cost of each such item to be taken into account. The amended return must also include any resulting adjustments to taxable income.

An election (or any specification made in the election) to take a section 179 deduction for 2023 can only be revoked with the Commissioner's approval.

To be eligible to claim the section 179 deduction, you must use your car more than 50% for business or work in the year you acquired it. If your business use of the car is 50% or less in a later tax year during the recovery period, you have to recapture (include in income) in that later year any excess depreciation. Any section 179 deduction claimed on the car is included in figuring the excess depreciation. For information on this calculation, see Excess depreciation , later in this chapter under Car Used 50% or Less for Business. For more information on recapture of a section 179 deduction, see Pub. 946.

If you dispose of a car on which you had claimed the section 179 deduction, the amount of that deduction is treated as a depreciation deduction for recapture purposes. You treat any gain on the disposition of the property as ordinary income up to the amount of the section 179 deduction and any allowable depreciation (unless you establish the amount actually allowed). For information on the disposition of a car, see Disposition of a Car , later. For more information on recapture of a section 179 deduction, see Pub. 946.

Special Depreciation Allowance

You may be able to claim the special depreciation allowance for your car, truck, or van if it is qualified property and was placed in service in 2023. The allowance for 2023 is an additional depreciation deduction for 100% of the car's depreciable basis (after any section 179 deduction, but before figuring your regular depreciation deduction under MACRS) if the vehicle was acquired after September 27, 2017, and placed in service during 2023. Further, while it applies to a new vehicle, it also applies to a used vehicle only if the vehicle meets the used property requirements. For more information on the used property requirements, see section 168(k)(2)(E)(ii). To qualify for the allowance, more than 50% of the use of the car must be in a qualified business use (as defined under Depreciation Deduction , later).

The first-year limit on the depreciation deduction, special depreciation allowance, and section 179 deduction for vehicles acquired before September 28, 2017, and placed in service during 2023, is $12,200. Your combined section 179 depreciation, special depreciation allowance, and regular MACRS depreciation deduction is limited to the maximum allowable depreciation deduction for vehicles acquired after September 27, 2017, and placed in service during 2023 is $20,200. If you elect not to claim a special depreciation allowance for a vehicle placed in service in 2023, the amount is $12,200. See Depreciation Limits , later in this chapter.

To be qualified property, the car (including the truck or van) must meet all of the following tests.

You acquired the car after September 27, 2017, but only if no written binding contract to acquire the car existed before September 28, 2017.

You acquired the car new or used.

You placed the car in service in your trade or business before January 1, 2027.

You used the car more than 50% in a qualified business use during the tax year.

You can elect not to claim the special depreciation allowance for your car, truck, or van that is qualified property. If you make this election, it applies to all 5-year property placed in service during the year.

To make this election, attach a statement to your timely filed return (including extensions) indicating the class of property (5-year for cars) for which you are making the election and that you are electing not to claim the special depreciation allowance for qualified property in that class of property.

Depreciation Deduction

If you use actual car expenses to figure your deduction for a car you own and use in your business, you can claim a depreciation deduction. This means you can deduct a certain amount each year as a recovery of your cost or other basis in your car.

You generally need to know the following things about the car you intend to depreciate.

Your basis in the car.

The date you place the car in service.

The method of depreciation and recovery period you will use.

Your basis in a car for figuring depreciation is generally its cost. This includes any amount you borrow or pay in cash, other property, or services.

Generally, you figure depreciation on your car, truck, or van using your unadjusted basis (see Unadjusted basis , later). However, in some situations, you will use your adjusted basis (your basis reduced by depreciation allowed or allowable in earlier years). For one of these situations, see Exception under Methods of depreciation , later.

If you change the use of a car from personal to business, your basis for depreciation is the lesser of the fair market value or your adjusted basis in the car on the date of conversion. Additional rules concerning basis are discussed later in this chapter under Unadjusted basis .

You generally place a car in service when it is available for use in your work or business, in an income-producing activity, or in a personal activity. Depreciation begins when the car is placed in service for use in your work or business or for the production of income.

For purposes of figuring depreciation, if you first start using the car only for personal use and later convert it to business use, you place the car in service on the date of conversion.

If you place a car in service and dispose of it in the same tax year, you can’t claim any depreciation deduction for that car.

Generally, you figure depreciation on cars using the Modified Accelerated Cost Recovery (MACRS) discussed later in this chapter.

If you used the standard mileage rate in the first year of business use and change to the actual expenses method in a later year, you can’t depreciate your car under the MACRS rules. You must use straight line depreciation over the estimated remaining useful life of the car. The amount you depreciate can’t be more than the depreciation limit that applies for that year. See Depreciation Limits , later.

To figure depreciation under the straight line method, you must reduce your basis in the car (but not below zero) by a set rate per mile for all miles for which you used the standard mileage rate. The rate per mile varies depending on the year(s) you used the standard mileage rate. For the rate(s) to use, see Depreciation adjustment when you used the standard mileage rate under Disposition of a Car , later.

This reduction of basis is in addition to those basis adjustments described later under Unadjusted basis . You must use your adjusted basis in your car to figure your depreciation deduction. For additional information on the straight line method of depreciation, see Pub. 946.

Generally, you must use your car more than 50% for qualified business use (defined next) during the year to use MACRS. You must meet this more-than-50%-use test each year of the recovery period (6 years under MACRS) for your car.

If your business use is 50% or less, you must use the straight line method to depreciate your car. This is explained later under Car Used 50% or Less for Business .

A qualified business use is any use in your trade or business. It doesn’t include use for the production of income (investment use), or use provided under lease to, or as compensation to, a 5% owner or related person. However, you do combine your business and investment use to figure your depreciation deduction for the tax year.

Don’t treat any use of your car by another person as use in your trade or business unless that use meets one of the following conditions.

It is directly connected with your business.

It is properly reported by you as income to the other person (and, if you have to, you withhold tax on the income).

It results in a payment of fair market rent. This includes any payment to you for the use of your car.

If you used your car more than 50% in qualified business use in the year you placed it in service, but 50% or less in a later year (including the year of disposition), you have to change to the straight line method of depreciation. See Qualified business use 50% or less in a later year under Car Used 50% or Less for Business , later.

If you use your car for more than one purpose during the tax year, you must allocate the use to the various purposes. You do this on the basis of mileage. Figure the percentage of qualified business use by dividing the number of miles you drive your car for business purposes during the year by the total number of miles you drive the car during the year for any purpose.

If you change the use of a car from 100% personal use to business use during the tax year, you may not have mileage records for the time before the change to business use. In this case, you figure the percentage of business use for the year as follows.

Determine the percentage of business use for the period following the change. Do this by dividing business miles by total miles driven during that period.

Multiply the percentage in (1) by a fraction. The numerator (top number) is the number of months the car is used for business, and the denominator (bottom number) is 12.

You use a car only for personal purposes during the first 6 months of the year. During the last 6 months of the year, you drive the car a total of 15,000 miles of which 12,000 miles are for business. This gives you a business use percentage of 80% (12,000 ÷ 15,000) for that period. Your business use for the year is 40% (80% (0.80) × 6 / 12 ).

The amount you can claim for section 179, special depreciation allowance, and depreciation deductions may be limited. The maximum amount you can claim depends on the year in which you placed your car in service. You have to reduce the maximum amount if you did not use the car exclusively for business. See Depreciation Limits , later.

You use your unadjusted basis (often referred to as your basis or your basis for depreciation) to figure your depreciation using the MACRS depreciation chart, explained later under Modified Accelerated Cost Recovery System (MACRS) . Your unadjusted basis for figuring depreciation is your original basis increased or decreased by certain amounts.

To figure your unadjusted basis, begin with your car's original basis, which is generally its cost. Cost includes sales taxes (see Sales taxes , earlier), destination charges, and dealer preparation. Increase your basis by any substantial improvements you make to your car, such as adding air conditioning or a new engine. Decrease your basis by any section 179 deduction, special depreciation allowance, gas guzzler tax, and vehicle credits claimed. See Pub. 551, Basis of Assets, for further details.

If you acquired the car by gift or inheritance, see Pub. 551, Basis of Assets, for information on your basis in the car.

A major improvement to a car is treated as a new item of 5-year recovery property. It is treated as placed in service in the year the improvement is made. It doesn’t matter how old the car is when the improvement is added. Follow the same steps for depreciating the improvement as you would for depreciating the original cost of the car. However, you must treat the improvement and the car as a whole when applying the limits on the depreciation deductions. Your car's depreciation deduction for the year (plus any section 179 deduction, special depreciation allowance, and depreciation on any improvements) can’t be more than the depreciation limit that applies for that year. See Depreciation Limits , later.

If you traded one car (the “old car”) for another car (the “new car”) in 2023, you must treat the transaction as a disposition of the old car and the purchase of the new car. You must treat the old car as disposed of at the time of the trade-in. The depreciable basis of the new car is the adjusted basis of the old car (figured as if 100% of the car’s use had been for business purposes) plus any additional amount you paid for the new car. You then figure your depreciation deduction for the new car beginning with the date you placed it in service. You must also complete Form 2106, Part II, Section D. This method is explained later, beginning at Effect of trade-in on basis .

The discussion that follows applies to trade-ins of cars in 2023, where the election was made to treat the transaction as a disposition of the old car and the purchase of the new car. For information on how to figure depreciation for cars involved in a like-kind exchange (trade-in) in 2023, for which the election wasn’t made, see Pub. 946 and Regulations section 1.168(i)-6(d)(3).

Like‐kind exchanges completed after December 31, 2017, are generally limited to exchanges of real property not held primarily for sale. Regulations section 1.168(i)-6 doesn't reflect this change in law.

If you trade in a car you used only in your business for another car that will be used only in your business, your original basis in the new car is your adjusted basis in the old car, plus any additional amount you pay for the new car.

You trade in a car that has an adjusted basis of $5,000 for a new car. In addition, you pay cash of $20,000 for the new car. Your original basis of the new car is $25,000 (your $5,000 adjusted basis in the old car plus the $20,000 cash paid). Your unadjusted basis is $25,000 unless you claim the section 179 deduction, special depreciation allowance, or have other increases or decreases to your original basis, discussed under Unadjusted basis , earlier.

If you trade in a car you used partly in your business for a new car you will use in your business, you must make a “trade-in” adjustment for the personal use of the old car. This adjustment has the effect of reducing your basis in your old car, but not below zero, for purposes of figuring your depreciation deduction for the new car. (This adjustment isn’t used, however, when you determine the gain or loss on the later disposition of the new car. See Pub. 544, Sales and Other Dispositions of Assets, for information on how to report the disposition of your car.)

To figure the unadjusted basis of your new car for depreciation, first add to your adjusted basis in the old car any additional amount you pay for the new car. Then subtract from that total the excess, if any, of:

The total of the amounts that would have been allowable as depreciation during the tax years before the trade if 100% of the use of the car had been business and investment use, over

The total of the amounts actually allowed as depreciation during those years.

MACRS is the name given to the tax rules for getting back (recovering) through depreciation deductions the cost of property used in a trade or business or to produce income.

The maximum amount you can deduct is limited, depending on the year you placed your car in service. See Depreciation Limits , later.

Under MACRS, cars are classified as 5-year property. You actually depreciate the cost of a car, truck, or van over a period of 6 calendar years. This is because your car is generally treated as placed in service in the middle of the year, and you claim depreciation for one-half of both the first year and the sixth year.

For more information on the qualifications for this shorter recovery period and the percentages to use in figuring the depreciation deduction, see chapter 4 of Pub. 946.

You can use one of the following methods to depreciate your car.

The 200% declining balance method (200% DB) over a 5-year recovery period that switches to the straight line method when that method provides an equal or greater deduction.

The 150% declining balance method (150% DB) over a 5-year recovery period that switches to the straight line method when that method provides an equal or greater deduction.

The straight line method (SL) over a 5-year recovery period.

Before choosing a method, you may wish to consider the following facts.

Using the straight line method provides equal yearly deductions throughout the recovery period.

Using the declining balance methods provides greater deductions during the earlier recovery years with the deductions generally getting smaller each year.

A 2023 MACRS Depreciation Chart and instructions are included in this chapter as Table 4-1 . Using this table will make it easy for you to figure the 2023 depreciation deduction for your car. A similar chart appears in the Instructions for Form 2106.

You must use the Depreciation Tables in Pub. 946 rather than the 2023 MACRS Depreciation Chart in this publication if any one of the following three conditions applies to you.

You file your return on a fiscal year basis.

You file your return for a short tax year (less than 12 months).

During the year, all of the following conditions apply.

You placed some property in service from January through September.

You placed some property in service from October through December.

Your basis in the property you placed in service from October through December (excluding nonresidential real property, residential rental property, and property placed in service and disposed of in the same year) was more than 40% of your total bases in all property you placed in service during the year.

If you use the percentages from the chart, you generally must continue to use them for the entire recovery period of your car. However, you can’t continue to use the chart if your basis in your car is adjusted because of a casualty. In that case, for the year of the adjustment and the remaining recovery period, figure the depreciation without the chart using your adjusted basis in the car at the end of the year of the adjustment and over the remaining recovery period. See Figuring the Deduction Without Using the Tables in chapter 4 of Pub. 946.

If you dispose of the car before the last year of the recovery period, you are generally allowed a half-year of depreciation in the year of disposition. This rule applies unless the mid-quarter convention applies to the vehicle being disposed of. See Depreciation deduction for the year of disposition under Disposition of a Car , later, for information on how to figure the depreciation allowed in the year of disposition.

To figure your depreciation deduction for 2023, find the percentage in the column of Table 4-1 based on the date that you first placed the car in service and the depreciation method that you are using. Multiply the unadjusted basis of your car (defined earlier) by that percentage to determine the amount of your depreciation deduction. If you prefer to figure your depreciation deduction without the help of the chart, see Pub. 946.

You bought a used truck in February 2022 to use exclusively in your landscape business. You paid $9,200 for the truck with no trade-in. You didn’t claim any section 179 deduction, the truck didn’t qualify for the special depreciation allowance, and you chose to use the 200% DB method to get the largest depreciation deduction in the early years.

You used the MACRS Depreciation Chart in 2022 to find your percentage. The unadjusted basis of the truck equals its cost because you used it exclusively for business. You multiplied the unadjusted basis of the truck, $9,200, by the percentage that applied, 20%, to figure your 2022 depreciation deduction of $1,840.

In 2023, you used the truck for personal purposes when you repaired your parent’s cabin. Your records show that the business use of the truck was 90% in 2023. You used Table 4-1 to find your percentage. Reading down the first column for the date placed in service and across to the 200% DB column, you locate your percentage, 32%. You multiply the unadjusted basis of the truck, $8,280 ($9,200 cost × 90% (0.90) business use), by 32% (0.32) to figure your 2023 depreciation deduction of $2,650.

Depreciation Limits

There are limits on the amount you can deduct for depreciation of your car, truck, or van. The section 179 deduction and special depreciation allowance are treated as depreciation for purposes of the limits. The maximum amount you can deduct each year depends on the date you acquired the passenger automobile and the year you place the passenger automobile in service. These limits are shown in the following tables for 2023.

Maximum Depreciation Deduction for Passenger Automobiles (Including Trucks and Vans) Acquired Before September 28, 2017, and Placed in Service During 2018–2023

Maximum depreciation deduction for passenger automobiles (including trucks and vans) acquired after september 27, 2017, and placed in service during 2018 or later.

The maximum amount you can deduct each year depends on the year you place the car in service. These limits are shown in the following tables for prior years.

Maximum Depreciation Deduction for Cars Placed in Service Prior to 2018

For tax years prior to 2018, the maximum depreciation deductions for trucks and vans are generally higher than those for cars. A truck or van is a passenger automobile that is classified by the manufacturer as a truck or van and rated at 6,000 pounds gross vehicle weight or less.

Maximum Depreciation Deduction for Trucks and Vans Placed in Service Prior to 2018

The depreciation limits aren’t reduced if you use a car for less than a full year. This means that you don’t reduce the limit when you either place a car in service or dispose of a car during the year. However, the depreciation limits are reduced if you don’t use the car exclusively for business and investment purposes. See Reduction for personal use next.

The depreciation limits are reduced based on your percentage of personal use. If you use a car less than 100% in your business or work, you must determine the depreciation deduction limit by multiplying the limit amount by the percentage of business and investment use during the tax year.

The section 179 deduction is treated as a depreciation deduction. If you acquired a passenger automobile (including trucks and vans) after September 27, 2017, and placed it in service in 2023, use it only for business, and choose the section 179 deduction, the special depreciation allowance and depreciation deduction for that vehicle for 2023 is limited to $20,200.

On September 4, 2023, you bought and placed in service a used car for $15,000. You used it 80% for your business, and you choose to take a section 179 deduction for the car. The car isn’t qualified property for purposes of the special depreciation allowance.

Before applying the limit, you figure your maximum section 179 deduction to be $12,000. This is the cost of your qualifying property (up to the maximum $1,160,000 amount) multiplied by your business use ($15,000 × 80% (0.80)).

You then figure that your section 179 deduction for 2023 is limited to $9,760 (80% of $12,200). You then figure your unadjusted basis of $2,440 (($15,000 × 80% (0.80)) − $9,760) for determining your depreciation deduction. You have reached your maximum depreciation deduction for 2023. For 2024, you will use your unadjusted basis of $2,440 to figure your depreciation deduction.

If the depreciation deductions for your car are reduced under the passenger automobile limits (discussed earlier), you will have unrecovered basis in your car at the end of the recovery period. If you continue to use your car for business, you can deduct that unrecovered basis (subject to depreciation limits) after the recovery period ends.

This is your cost or other basis in the car reduced by any clean-fuel vehicle deduction (for vehicles placed in service before January 1, 2006), alternative motor vehicle credit, electric vehicle credit, gas guzzler tax, and depreciation (including any special depreciation allowance , discussed earlier, unless you elect not to claim it) and section 179 deductions that would have been allowable if you had used the car 100% for business and investment use.

For 5-year property, your recovery period is 6 calendar years. A part year's depreciation is allowed in the first calendar year, a full year's depreciation is allowed in each of the next 4 calendar years, and a part year's depreciation is allowed in the 6th calendar year.

Under MACRS, your recovery period is the same whether you use declining balance or straight line depreciation. You determine your unrecovered basis in the 7th year after you placed the car in service.

If you continue to use your car for business after the recovery period, you can claim a depreciation deduction in each succeeding tax year until you recover your basis in the car. The maximum amount you can deduct each year is determined by the date you placed the car in service and your business-use percentage. For example, no deduction is allowed for a year you use your car 100% for personal purposes.

In April 2017, you bought and placed in service a car you used exclusively in your business. The car cost $31,500. You didn’t claim a section 179 deduction or the special depreciation allowance for the car. You continued to use the car 100% in your business throughout the recovery period (2017 through 2022). For those years, you used the MACRS Depreciation Chart (200% DB method), the Maximum Depreciation Deduction for Cars Placed in Service Prior to 2018 table and Maximum Depreciation Deduction for Passenger Automobiles (Including Trucks and Vans) Acquired Before September 28, 2017, and Placed in Service During 2018–2023 table, earlier, for the applicable tax year to figure your depreciation deductions during the recovery period. Your depreciation deductions were subject to the depreciation limits, so you will have unrecovered basis at the end of the recovery period as shown in the following table.

At the end of 2022, you had an unrecovered basis in the car of $14,626 ($31,500 – $16,874). If you continued to use the car 100% for business in 2023 and later years, you can claim a depreciation deduction equal to the lesser of $1,875 or your remaining unrecovered basis.

If your business use of the car was less than 100% during any year, your depreciation deduction would be less than the maximum amount allowable for that year. However, in determining your unrecovered basis in the car, you would still reduce your original basis by the maximum amount allowable as if the business use had been 100%. For example, if you had used your car 60% for business instead of 100%, your allowable depreciation deductions would have been $10,124 ($16,874 × 60% (0.60)), but you still would have to reduce your basis by $16,874 to determine your unrecovered basis.

Table 4-1. 2023 MACRS Depreciation Chart (Use To Figure Depreciation for 2023)

Car used 50% or less for business.

If you use your car 50% or less for qualified business use (defined earlier under Depreciation Deduction ) either in the year the car is placed in service or in a later year, special rules apply. The rules that apply in these two situations are explained in the following paragraphs. (For this purpose, “car” was defined earlier under Actual Car Expenses and includes certain trucks and vans.)

If you use your car 50% or less for qualified business use, the following rules apply.

You can’t take the section 179 deduction.

You can’t take the special depreciation allowance.

You must figure depreciation using the straight line method over a 5-year recovery period. You must continue to use the straight line method even if your percentage of business use increases to more than 50% in a later year.

Instead of making the computation yourself, you can use column (c) of Table 4-1 to find the percentage to use.

In May 2023, you bought and placed in service a car for $17,500. You used it 40% for your consulting business. Because you didn’t use the car more than 50% for business, you can’t take any section 179 deduction or special depreciation allowance, and you must use the straight line method over a 5-year recovery period to recover the cost of your car.

You deduct $700 in 2023. This is the lesser of:

$700 (($17,500 cost × 40% (0.40) business use) × 10% (0.10) recovery percentage (from column (c) of Table 4-1 )), or

$4,880 ($12,200 maximum limit × 40% (0.40) business use).

If you use your car more than 50% in qualified business use in the tax year it is placed in service but the business use drops to 50% or less in a later year, you can no longer use an accelerated depreciation method for that car.

For the year the business use drops to 50% or less and all later years in the recovery period, you must use the straight line depreciation method over a 5-year recovery period. In addition, for the year your business use drops to 50% or less, you must recapture (include in your gross income) any excess depreciation (discussed later). You also increase the adjusted basis of your car by the same amount.

In June 2020, you purchased a car for exclusive use in your business. You met the more-than-50%-use test for the first 3 years of the recovery period (2020 through 2022) but failed to meet it in the fourth year (2023). You determine your depreciation for 2023 using 20% (from column (c) of Table 4-1 ). You will also have to determine and include in your gross income any excess depreciation, discussed next.

You must include any excess depreciation in your gross income and add it to your car's adjusted basis for the first tax year in which you don’t use the car more than 50% in qualified business use. Use Form 4797, Sales of Business Property, to figure and report the excess depreciation in your gross income.

Excess depreciation is:

The amount of the depreciation deductions allowable for the car (including any section 179 deduction claimed and any special depreciation allowance claimed) for tax years in which you used the car more than 50% in qualified business use, minus

The amount of the depreciation deductions that would have been allowable for those years if you hadn’t used the car more than 50% in qualified business use for the year you placed it in service. This means the amount of depreciation figured using the straight line method.

In September 2019, you bought a car for $20,500 and placed it in service. You didn’t claim the section 179 deduction or the special depreciation allowance. You used the car exclusively in qualified business use for 2019, 2020, 2021, and 2022. For those years, you used the appropriate MACRS Depreciation Chart to figure depreciation deductions totaling $13,185 ($3,160 for 2019, $5,100 for 2020, $3,050 for 2021, and $1,875 for 2022) under the 200% DB method.

During 2023, you used the car 30% for business and 70% for personal purposes. Since you didn’t meet the more-than-50%-use test, you must switch from the 200% DB depreciation method to the straight line depreciation method for 2023, and include in gross income for 2023 your excess depreciation determined as follows.

In 2023, using Form 4797, you figure and report the $2,110 excess depreciation you must include in your gross income. Your adjusted basis in the car is also increased by $2,110. Your 2023 depreciation is $1,230 ($20,500 (unadjusted basis) × 30% (0.30) (business-use percentage) × 20% (0.20) (from column (c) of Table 4-1 on the line for Jan. 1–Sept. 30, 2019)). However, your depreciation deduction is limited to $563 ($1,875 x 30% (0.30) business use).

Leasing a Car

If you lease a car, truck, or van that you use in your business, you can use the standard mileage rate or actual expenses to figure your deductible expense. This section explains how to figure actual expenses for a leased car, truck, or van.

If you choose to use actual expenses, you can deduct the part of each lease payment that is for the use of the vehicle in your business. You can’t deduct any part of a lease payment that is for personal use of the vehicle, such as commuting.

You must spread any advance payments over the entire lease period. You can’t deduct any payments you make to buy a car, truck, or van even if the payments are called “lease payments.”

If you lease a car, truck, or van for 30 days or more, you may have to reduce your lease payment deduction by an “inclusion amount,” explained next.

Inclusion Amounts

If you lease a car, truck, or van that you use in your business for a lease term of 30 days or more, you may have to include an inclusion amount in your income for each tax year you lease the vehicle. To do this, you don’t add an amount to income. Instead, you reduce your deduction for your lease payment. (This reduction has an effect similar to the limit on the depreciation deduction you would have on the vehicle if you owned it.)

The inclusion amount is a percentage of part of the fair market value of the leased vehicle multiplied by the percentage of business and investment use of the vehicle for the tax year. It is prorated for the number of days of the lease term in the tax year.

The inclusion amount applies to each tax year that you lease the vehicle if the fair market value (defined next) when the lease began was more than the amounts shown in the following tables.

All vehicles are subject to a single inclusion amount threshold for passenger automobiles leased and put into service in 2023. You may have an inclusion amount for a passenger automobile if:

Passenger Automobiles (Including Trucks and Vans)

For years prior to 2018, see the inclusion tables below. You may have an inclusion amount for a passenger automobile if:

Cars (Except for Trucks and Vans)

Trucks and Vans

Fair market value is the price at which the property would change hands between a willing buyer and seller, neither having to buy or sell, and both having reasonable knowledge of all the necessary facts. Sales of similar property around the same date may be helpful in figuring the fair market value of the property.

Figure the fair market value on the first day of the lease term. If the capitalized cost of a car is specified in the lease agreement, use that amount as the fair market value.

Inclusion amounts for tax years 2018–2023 are listed in Appendices A-1 through A-6 for passenger vehicles (including trucks and vans). If the fair market value of the vehicle is $100,000 or less, use the appropriate appendix (depending on the year you first placed the vehicle in service) to determine the inclusion amount. If the fair market value is more than $100,000, see the revenue procedure(s) identified in the footnote of that year’s appendix for the inclusion amount.

For each tax year during which you lease the car for business, determine your inclusion amount by following these three steps.

Locate the appendix that applies to you. To find the inclusion amount, do the following.

Find the line that includes the fair market value of the car on the first day of the lease term.

Go across the line to the column for the tax year in which the car is used under the lease to find the dollar amount. For the last tax year of the lease, use the dollar amount for the preceding year.

Prorate the dollar amount from (1b) for the number of days of the lease term included in the tax year.

Multiply the prorated amount from (2) by the percentage of business and investment use for the tax year. This is your inclusion amount.

On January 17, 2023, you leased a car for 3 years and placed it in service for use in your business. The car had a fair market value of $62,500 on the first day of the lease term. You use the car 75% for business and 25% for personal purposes during each year of the lease. Assuming you continue to use the car 75% for business, you use Appendix A-6 to arrive at the following inclusion amounts for each year of the lease. For the last tax year of the lease, 2026, you use the amount for the preceding year.

2024 is a leap year and includes an extra calendar day, February 29, 2024.

For each year of the lease that you deduct lease payments, you must reduce your deduction by the inclusion amount figured for that year.

If you lease a car for business use and, in a later year, change it to personal use, follow the rules explained earlier under Figuring the inclusion amount . For the tax year in which you stop using the car for business, use the dollar amount for the previous tax year. Prorate the dollar amount for the number of days in the lease term that fall within the tax year.

On August 16, 2022, you leased a car with a fair market value of $64,500 for 3 years. You used the car exclusively in your data processing business. On November 6, 2023, you closed your business and went to work for a company where you aren’t required to use a car for business. Using Appendix A-5 , you figured your inclusion amount for 2022 and 2023 as shown in the following table and reduced your deductions for lease payments by those amounts.

If you lease a car for personal use and, in a later year, change it to business use, you must determine the car's fair market value on the date of conversion. Then figure the inclusion amount using the rules explained earlier under Figuring the inclusion amount . Use the fair market value on the date of conversion.

In March 2021, you leased a truck for 4 years for personal use. On June 1, 2023, you started working as a self-employed advertising consultant and started using the leased truck for business purposes. Your records show that your business use for June 1 through December 31 was 60%. To figure your inclusion amount for 2023, you obtained an appraisal from an independent car leasing company that showed the fair market value of your 2021 truck on June 1, 2023, was $62,650. Using Appendix A-6 , you figured your inclusion amount for 2023 as shown in the following table.

For information on reporting inclusion amounts, employees should see Car rentals under Completing Forms 2106 in chapter 6. Sole proprietors should see the Instructions for Schedule C (Form 1040), and farmers should see the Instructions for Schedule F (Form 1040).

Disposition of a Car

If you dispose of your car, you may have a taxable gain or a deductible loss. The portion of any gain that is due to depreciation (including any section 179 deduction, clean-fuel vehicle deduction (for vehicles placed in service before January 1, 2006), and special depreciation allowance) that you claimed on the car will be treated as ordinary income. However, you may not have to recognize a gain or loss if you dispose of the car because of a casualty or theft.

This section gives some general information about dispositions of cars. For information on how to report the disposition of your car, see Pub. 544.

Like‐kind exchanges completed after December 31, 2017, are generally limited to exchanges of real property not held primarily for sale.

For a casualty or theft, a gain results when you receive insurance or other reimbursement that is more than your adjusted basis in your car. If you then spend all of the proceeds to acquire replacement property (a new car or repairs to the old car) within a specified period of time, you don’t recognize any gain. Your basis in the replacement property is its cost minus any gain that isn’t recognized. See Pub. 547 for more information.

When you trade in an old car for a new one, the transaction is considered a like-kind exchange. Generally, no gain or loss is recognized. (For exceptions, see chapter 1 of Pub. 544.) In a trade-in situation, your basis in the new property is generally your adjusted basis in the old property plus any additional amount you pay. (See Unadjusted basis , earlier.)

If you used the standard mileage rate for the business use of your car, depreciation was included in that rate. The rate of depreciation that was allowed in the standard mileage rate is shown in the Rate of Depreciation Allowed in Standard Mileage Rate table, later. You must reduce your basis in your car (but not below zero) by the amount of this depreciation.

If your basis is reduced to zero (but not below zero) through the use of the standard mileage rate, and you continue to use your car for business, no adjustment (reduction) to the standard mileage rate is necessary. Use the full standard mileage rate (65.5 cents ($0.655) per mile from January 1–December 31 for 2023) for business miles driven.

Rate of Depreciation Allowed in Standard Mileage Rate

In 2018, you bought and placed in service a car for exclusive use in your business. The car cost $25,500. From 2018 through 2023, you used the standard mileage rate to figure your car expense deduction. You drove your car 14,100 miles in 2018, 16,300 miles in 2019, 15,600 miles in 2020, 16,700 miles in 2021, 15,100 miles in 2022, and 14,900 miles in 2023. The depreciation portion of your car expense deduction is figured as follows.

If you deduct actual car expenses and you dispose of your car before the end of the recovery period (years 2 through 5), you are allowed a reduced depreciation deduction in the year of disposition.

Use the depreciation tables in Pub. 946 to figure the reduced depreciation deduction for a car disposed of in 2023.

The depreciation amounts computed using the depreciation tables in Pub. 946 for years 2 through 5 that you own your car are for a full year’s depreciation. Years 1 and 6 apply the half-year or mid-quarter convention to the computation for you. If you dispose of the vehicle in years 2 through 5 and the half-year convention applies, then the full year’s depreciation amount must be divided by 2. If the mid-quarter convention applies, multiply the full year’s depreciation by the percentage from the following table for the quarter that you disposed of the car.

If the car is subject to the Depreciation Limits , discussed earlier, reduce (but do not increase) the computed depreciation to this amount. See Sale or Other Disposition Before the Recovery Period Ends in chapter 4 of Pub. 946 for more information.

5. Recordkeeping

If you deduct travel, gift, or transportation expenses, you must be able to prove (substantiate) certain elements of expense. This chapter discusses the records you need to keep to prove these expenses.

How To Prove Expenses

Table 5-1 is a summary of records you need to prove each expense discussed in this publication. You must be able to prove the elements listed across the top portion of the chart. You prove them by having the information and receipts (where needed) for the expenses listed in the first column.

You should keep adequate records to prove your expenses or have sufficient evidence that will support your own statement. You must generally prepare a written record for it to be considered adequate. This is because written evidence is more reliable than oral evidence alone. However, if you prepare a record on a computer, it is considered an adequate record.

What Are Adequate Records?

You should keep the proof you need in an account book, diary, log, statement of expense, trip sheets, or similar record. You should also keep documentary evidence that, together with your record, will support each element of an expense.

You must generally have documentary evidence such as receipts, canceled checks, or bills, to support your expenses.

Documentary evidence isn’t needed if any of the following conditions apply.

You have meals or lodging expenses while traveling away from home for which you account to your employer under an accountable plan, and you use a per diem allowance method that includes meals and/or lodging. ( Accountable plans and per diem allowances are discussed in chapter 6.)

Your expense, other than lodging, is less than $75.

You have a transportation expense for which a receipt isn’t readily available.

Documentary evidence will ordinarily be considered adequate if it shows the amount, date, place, and essential character of the expense.

For example, a hotel receipt is enough to support expenses for business travel if it has all of the following information.

The name and location of the hotel.

The dates you stayed there.

Separate amounts for charges such as lodging, meals, and telephone calls.

A restaurant receipt is enough to prove an expense for a business meal if it has all of the following information.

The name and location of the restaurant.

The number of people served.

The date and amount of the expense.

A canceled check, together with a bill from the payee, ordinarily establishes the cost. However, a canceled check by itself doesn’t prove a business expense without other evidence to show that it was for a business purpose.

You don‘t have to record information in your account book or other record that duplicates information shown on a receipt as long as your records and receipts complement each other in an orderly manner.

You don’t have to record amounts your employer pays directly for any ticket or other travel item. However, if you charge these items to your employer, through a credit card or otherwise, you must keep a record of the amounts you spend.

You should record the elements of an expense or of a business use at or near the time of the expense or use and support it with sufficient documentary evidence. A timely kept record has more value than a statement prepared later when there is generally a lack of accurate recall.

You don’t need to write down the elements of every expense on the day of the expense. If you maintain a log on a weekly basis that accounts for use during the week, the log is considered a timely kept record.

If you give your employer, client, or customer an expense account statement, it can also be considered a timely kept record. This is true if you copy it from your account book, diary, log, statement of expense, trip sheets, or similar record.

You must generally provide a written statement of the business purpose of an expense. However, the degree of proof varies according to the circumstances in each case. If the business purpose of an expense is clear from the surrounding circumstances, then you don’t need to give a written explanation.

If you are a sales representative who calls on customers on an established sales route, you don’t have to give a written explanation of the business purpose for traveling that route. You can satisfy the requirements by recording the length of the delivery route once, the date of each trip at or near the time of the trips, and the total miles you drove the car during the tax year. You could also establish the date of each trip with a receipt, record of delivery, or other documentary evidence.

You don’t need to put confidential information relating to an element of a deductible expense (such as the place, business purpose, or business relationship) in your account book, diary, or other record. However, you do have to record the information elsewhere at or near the time of the expense and have it available to fully prove that element of the expense.

What if I Have Incomplete Records?

If you don’t have complete records to prove an element of an expense, then you must prove the element with:

Your own written or oral statement containing specific information about the element, and

Other supporting evidence that is sufficient to establish the element.

If the element is the description of a gift, or the cost, time, place, or date of an expense, the supporting evidence must be either direct evidence or documentary evidence. Direct evidence can be written statements or the oral testimony of your guests or other witnesses setting forth detailed information about the element. Documentary evidence can be receipts, paid bills, or similar evidence.

If the element is either the business relationship of your guests or the business purpose of the amount spent, the supporting evidence can be circumstantial rather than direct. For example, the nature of your work, such as making deliveries, provides circumstantial evidence of the use of your car for business purposes. Invoices of deliveries establish when you used the car for business.

Table 5-1. How To Prove Certain Business Expenses

You can keep an adequate record for parts of a tax year and use that record to prove the amount of business or investment use for the entire year. You must demonstrate by other evidence that the periods for which an adequate record is kept are representative of the use throughout the tax year.

You use your car to visit the offices of clients, meet with suppliers and other subcontractors, and pick up and deliver items to clients. There is no other business use of the car, but you and your family use the car for personal purposes. You keep adequate records during the first week of each month that show that 75% of the use of the car is for business. Invoices and bills show that your business use continues at the same rate during the later weeks of each month. Your weekly records are representative of the use of the car each month and are sufficient evidence to support the percentage of business use for the year.

You can satisfy the substantiation requirements with other evidence if, because of the nature of the situation in which an expense is made, you can’t get a receipt. This applies if all the following are true.

You were unable to obtain evidence for an element of the expense or use that completely satisfies the requirements explained earlier under What Are Adequate Records .

You are unable to obtain evidence for an element that completely satisfies the two rules listed earlier under What if I Have Incomplete Records .

You have presented other evidence for the element that is the best proof possible under the circumstances.

If you can’t produce a receipt because of reasons beyond your control, you can prove a deduction by reconstructing your records or expenses. Reasons beyond your control include fire, flood, and other casualties.

Separating and Combining Expenses

This section explains when expenses must be kept separate and when expenses can be combined.

Each separate payment is generally considered a separate expense. For example, if you entertain a customer or client at dinner and then go to the theater, the dinner expense and the cost of the theater tickets are two separate expenses. You must record them separately in your records.

You can make one daily entry in your record for reasonable categories of expenses. Examples are taxi fares, telephone calls, or other incidental travel costs. Nonentertainment meals should be in a separate category. You can include tips for meal-related services with the costs of the meals.

Expenses of a similar nature occurring during the course of a single event are considered a single expense.

You can account for several uses of your car that can be considered part of a single use, such as a round trip or uninterrupted business use, with a single record. Minimal personal use, such as a stop for lunch on the way between two business stops, isn’t an interruption of business use.

You make deliveries at several different locations on a route that begins and ends at your employer's business premises and that includes a stop at the business premises between two deliveries. You can account for these using a single record of miles driven.

You don’t always have to record the name of each recipient of a gift. A general listing will be enough if it is evident that you aren’t trying to avoid the $25 annual limit on the amount you can deduct for gifts to any one person. For example, if you buy a large number of tickets to local high school basketball games and give one or two tickets to each of many customers, it is usually enough to record a general description of the recipients.

If you can prove the total cost of travel or entertainment but you can’t prove how much it costs for each person who participated in the event, you may have to allocate the total cost among you and your guests on a pro rata basis. To do so, you must establish the number of persons who participated in the event.

If your return is examined, you may have to provide additional information to the IRS. This information could be needed to clarify or to establish the accuracy or reliability of information contained in your records, statements, testimony, or documentary evidence before a deduction is allowed.

How Long To Keep Records and Receipts

You must keep records as long as they may be needed for the administration of any provision of the Internal Revenue Code. Generally, this means you must keep records that support your deduction (or an item of income) for 3 years from the date you file the income tax return on which the deduction is claimed. A return filed early is considered filed on the due date. For a more complete explanation of how long to keep records, see Pub. 583, Starting a Business and Keeping Records.

You must keep records of the business use of your car for each year of the recovery period. See More-than-50%-use test in chapter 4 under Depreciation Deduction.

Employees who give their records and documentation to their employers and are reimbursed for their expenses generally don’t have to keep copies of this information. However, you may have to prove your expenses if any of the following conditions apply.

You claim deductions for expenses that are more than reimbursements.

Your expenses are reimbursed under a nonaccountable plan.

Your employer doesn’t use adequate accounting procedures to verify expense accounts.

You are related to your employer as defined under Per Diem and Car Allowances in chapter 6.

Table 5-2 and Table 5-3 are examples of worksheets that can be used for tracking business expenses.

Table 5-2. Daily Business Mileage and Expense Log

Table 5-3. Weekly Traveling Expense Record

6. How To Report

This chapter explains where and how to report the expenses discussed in this publication. It discusses reimbursements and how to treat them under accountable and nonaccountable plans. It also explains rules for independent contractors and clients, fee-basis officials, certain performing artists, Armed Forces reservists, and certain disabled employees. The chapter ends with illustrations of how to report travel, gift, and car expenses on Forms 2106.

Where To Report

This section provides general information on where to report the expenses discussed in this publication.

You must report your income and expenses on Schedule C (Form 1040) if you are a sole proprietor, or on Schedule F (Form 1040) if you are a farmer. You don’t use Form 2106.

If you claim car or truck expenses, you must provide certain information on the use of your vehicle. You provide this information on Schedule C (Form 1040) or Form 4562.

If you file Schedule C (Form 1040):

Report your travel expenses, except meals, on line 24a;

Report your deductible non-entertainment-related meals (actual cost or standard meal allowance) on line 24b;

Report your gift expenses and transportation expenses, other than car expenses, on line 27a; and

Report your car expenses on line 9. Complete Part IV of the form unless you have to file Form 4562 for depreciation or amortization.

If you file Schedule F (Form 1040), do the following.

Report your car expenses on line 10. Attach Form 4562 and provide information on the use of your car in Part V of Form 4562.

Report all other business expenses discussed in this publication on line 32. You can only include 50% of your non-entertainment-related meals on that line.

If you are both self-employed and an employee, you must keep separate records for each business activity. Report your business expenses for self-employment on Schedule C (Form 1040), or Schedule F (Form 1040), as discussed earlier. Report your business expenses for your work as an employee on Form 2106, as discussed next.

If you are an employee, you must generally complete Form 2106 to deduct your travel and transportation expenses.

You are an employee deducting expenses attributable to your job.

You weren’t reimbursed by your employer for your expenses (amounts included in box 1 of your Form W-2 aren’t considered reimbursements).

If you claim car expenses, you use the standard mileage rate.

For more information on how to report your expenses on Form 2106, see Completing Form 2106 , later.

If you didn’t receive any reimbursements (or the reimbursements were all included in box 1 of your Form W-2), the only business expense you are claiming is for gifts, and the special rules discussed later don’t apply to you, don’t complete Form 2106.

If you received a Form W-2 and the “Statutory employee” box in box 13 was checked, report your income and expenses related to that income on Schedule C (Form 1040). Don’t complete Form 2106.

Statutory employees include full-time life insurance salespersons, certain agent or commission drivers, traveling salespersons, and certain homeworkers.

If your employer reimburses you for nondeductible personal expenses, such as for vacation trips, your employer must report the reimbursement as wage income in box 1 of your Form W-2. You can’t deduct personal expenses.

If you have travel or transportation expenses related to income-producing property, report your deductible expenses on the form appropriate for that activity.

For example, if you have rental real estate income and expenses, report your expenses on Schedule E (Form 1040), Supplemental Income and Loss. See Pub. 527, Residential Rental Property, for more information on the rental of real estate.

Vehicle Provided by Your Employer

If your employer provides you with a car, you may be able to deduct the actual expenses of operating that car for business purposes. The amount you can deduct depends on the amount that your employer included in your income and the business and personal miles you drove during the year. You can’t use the standard mileage rate.

Your employer can figure and report either the actual value of your personal use of the car or the value of the car as if you used it only for personal purposes (100% income inclusion). Your employer must separately state the amount if 100% of the annual lease value was included in your income. If you are unsure of the amount included on your Form W-2, ask your employer.

You may be able to deduct the value of the business use of an employer-provided car if your employer reported 100% of the value of the car in your income. On your 2023 Form W-2, the amount of the value will be included in box 1, Wages, tips, other compensation; and box 14, Other.

To claim your expenses, complete Form 2106, Part II, Sections A and C. Enter your actual expenses on line 23 of Section C and include the entire value of the employer-provided car on line 25. Complete the rest of the form.

If less than the full annual lease value of the car was included on your Form W-2, this means that your Form W-2 only includes the value of your personal use of the car. Don’t enter this value on your Form 2106 because it isn’t deductible.

If you paid any actual costs (that your employer didn’t provide or reimburse you for) to operate the car, you can deduct the business portion of those costs. Examples of costs that you may have are gas, oil, and repairs. Complete Form 2106, Part II, Sections A and C. Enter your actual costs on line 23 of Section C and leave line 25 blank. Complete the rest of the form.

Reimbursements

This section explains what to do when you receive an advance or are reimbursed for any of the employee business expenses discussed in this publication.

If you received an advance, allowance, or reimbursement for your expenses, how you report this amount and your expenses depends on whether your employer reimbursed you under an accountable plan or a nonaccountable plan.

This section explains the two types of plans, how per diem and car allowances simplify proving the amount of your expenses, and the tax treatment of your reimbursements and expenses. It also covers rules for independent contractors.

You aren’t reimbursed or given an allowance for your expenses if you are paid a salary or commission with the understanding that you will pay your own expenses. In this situation, you have no reimbursement or allowance arrangement, and you don’t have to read this section on reimbursements. Instead, see Completing Form 2106 , later, for information on completing your tax return.

A reimbursement or other expense allowance arrangement is a system or plan that an employer uses to pay, substantiate, and recover the expenses, advances, reimbursements, and amounts charged to the employer for employee business expenses. Arrangements include per diem and car allowances.

A per diem allowance is a fixed amount of daily reimbursement your employer gives you for your lodging and M&IE when you are away from home on business. (The term “incidental expenses” is defined in chapter 1 under Standard Meal Allowance. ) A car allowance is an amount your employer gives you for the business use of your car.

Your employer should tell you what method of reimbursement is used and what records you must provide.

If you are an employer and you reimburse employee business expenses, how you treat this reimbursement on your employee's Form W-2 depends in part on whether you have an accountable plan. Reimbursements treated as paid under an accountable plan, as explained next, aren’t reported as pay. Reimbursements treated as paid under nonaccountable plans , as explained later, are reported as pay. See Pub. 15 (Circular E), Employer's Tax Guide, for information on employee pay.

Accountable Plans

To be an accountable plan, your employer's reimbursement or allowance arrangement must include all of the following rules.

Your expenses must have a business connection—that is, you must have paid or incurred deductible expenses while performing services as an employee of your employer.

You must adequately account to your employer for these expenses within a reasonable period of time.

You must return any excess reimbursement or allowance within a reasonable period of time.

Adequate accounting and returning excess reimbursements are discussed later.

An excess reimbursement or allowance is any amount you are paid that is more than the business-related expenses that you adequately accounted for to your employer.

The definition of reasonable period of time depends on the facts and circumstances of your situation. However, regardless of the facts and circumstances of your situation, actions that take place within the times specified in the following list will be treated as taking place within a reasonable period of time.

You receive an advance within 30 days of the time you have an expense.

You adequately account for your expenses within 60 days after they were paid or incurred.

You return any excess reimbursement within 120 days after the expense was paid or incurred.

You are given a periodic statement (at least quarterly) that asks you to either return or adequately account for outstanding advances and you comply within 120 days of the statement.

If you meet the three rules for accountable plans, your employer shouldn’t include any reimbursements in your income in box 1 of your Form W-2. If your expenses equal your reimbursements, you don’t complete Form 2106. You have no deduction since your expenses and reimbursements are equal.

Even though you are reimbursed under an accountable plan, some of your expenses may not meet all three rules. All reimbursements that fail to meet all three rules for accountable plans are generally treated as having been reimbursed under a nonaccountable plan (discussed later).

If you are reimbursed under an accountable plan, but you fail to return, within a reasonable time, any amounts in excess of the substantiated amounts, the amounts paid in excess of the substantiated expenses are treated as paid under a nonaccountable plan. See Reasonable period of time , earlier, and Returning Excess Reimbursements , later.

You may be reimbursed under your employer's accountable plan for expenses related to that employer's business, some of which would be allowable as employee business expense deductions and some of which would not. The reimbursements you receive for the nondeductible expenses don’t meet rule (1) for accountable plans, and they are treated as paid under a nonaccountable plan.

Your employer's plan reimburses you for travel expenses while away from home on business and also for meals when you work late at the office, even though you aren’t away from home. The part of the arrangement that reimburses you for the nondeductible meals when you work late at the office is treated as paid under a nonaccountable plan.

One of the rules for an accountable plan is that you must adequately account to your employer for your expenses. You adequately account by giving your employer a statement of expense, an account book, a diary, or a similar record in which you entered each expense at or near the time you had it, along with documentary evidence (such as receipts) of your travel, mileage, and other employee business expenses. (See Table 5-1 in chapter 5 for details you need to enter in your record and documents you need to prove certain expenses.) A per diem or car allowance satisfies the adequate accounting requirement under certain conditions. See Per Diem and Car Allowances , later.

You must account for all amounts you received from your employer during the year as advances, reimbursements, or allowances. This includes amounts you charged to your employer by credit card or other method. You must give your employer the same type of records and supporting information that you would have to give to the IRS if the IRS questioned a deduction on your return. You must pay back the amount of any reimbursement or other expense allowance for which you don’t adequately account or that is more than the amount for which you accounted.

Per Diem and Car Allowances

If your employer reimburses you for your expenses using a per diem or a car allowance, you can generally use the allowance as proof for the amount of your expenses. A per diem or car allowance satisfies the adequate accounting requirements for the amount of your expenses only if all the following conditions apply.

Your employer reasonably limits payments of your expenses to those that are ordinary and necessary in the conduct of the trade or business.

The allowance is similar in form to and not more than the federal rate (defined later).

You prove the time (dates), place, and business purpose of your expenses to your employer (as explained in Table 5-1 ) within a reasonable period of time.

You aren’t related to your employer (as defined next). If you are related to your employer, you must be able to prove your expenses to the IRS even if you have already adequately accounted to your employer and returned any excess reimbursement.

You are related to your employer if:

Your employer is your brother or sister, half brother or half sister, spouse, ancestor, or lineal descendant;

Your employer is a corporation in which you own, directly or indirectly, more than 10% in value of the outstanding stock; or

Certain relationships (such as grantor, fiduciary, or beneficiary) exist between you, a trust, and your employer.

The federal rate can be figured using any one of the following methods.

For per diem amounts:

The regular federal per diem rate.

The high-low rate.

For car expenses:

A fixed and variable rate (FAVR).

The regular federal per diem rate is the highest amount that the federal government will pay to its employees for lodging and M&IE (or M&IE only) while they are traveling away from home in a particular area. The rates are different for different localities. Your employer should have these rates available. You can also find federal per diem rates at GSA.gov/travel/plan-book/per-diem-rates .

The standard meal allowance is the federal M&IE rate. For travel in 2023, the rate for most small localities in the United States is $59 per day. Most major cities and many other localities qualify for higher rates. You can find this information at GSA.gov/travel/plan-book/per-diem-rates .

You receive an allowance only for M&IE when your employer does one of the following.

Provides you with lodging (furnishes it in kind).

Reimburses you, based on your receipts, for the actual cost of your lodging.

Pays the hotel, motel, etc., directly for your lodging.

Doesn’t have a reasonable belief that you had (or will have) lodging expenses, such as when you stay with friends or relatives or sleep in the cab of your truck.

Figures the allowance on a basis similar to that used in figuring your compensation, such as number of hours worked or miles traveled.

This is a simplified method of figuring the federal per diem rate for travel within the continental United States. It eliminates the need to keep a current list of the per diem rates for each city.

Under the high-low method, the per diem amount for travel during January through September of 2023 is $297 (which includes $74 for M&IE) for certain high-cost locations. All other areas have a per diem amount of $204 (which includes $64 for M&IE). For more information, see Notice 2022-44, which can be found at IRS.gov/irb/2022-41_IRB#NOT-2022-44 .

Effective October 1, 2023, the per diem rate for certain high-cost locations increased to $309 (which includes $74 for M&IE). The rate for all other locations increased to $214 (which includes $64 for M&IE). For more information, see Notice 2023-68, which can be found at IRS.gov/irb/2023-41_IRB#NOT-2023-68 , and Revenue Procedure 2019-48 at IRS.gov/irb/2019-51_IRB#REV-PROC-2019-48 .

The standard meal allowance is for a full 24-hour day of travel. If you travel for part of a day, such as on the days you depart and return, you must prorate the full-day M&IE rate. This rule also applies if your employer uses the regular federal per diem rate or the high-low rate.

You can use either of the following methods to figure the federal M&IE for that day.

For the day you depart, add 3 / 4 of the standard meal allowance amount for that day.

For the day you return, add 3 / 4 of the standard meal allowance amount for the preceding day.

Method 2: Prorate the standard meal allowance using any method you consistently apply in accordance with reasonable business practice. For example, an employer can treat 2 full days of per diem (that includes M&IE) paid for travel away from home from 9 a.m. of one day to 5 p.m. of the next day as being no more than the federal rate. This is true even though a federal employee would be limited to a reimbursement of M&IE for only 1½ days of the federal M&IE rate.

This is a set rate per mile that you can use to figure your deductible car expenses. For 2023, the standard mileage rate for the cost of operating your car for business use is 65.5 cents ($0.655) per mile.

This is an allowance your employer may use to reimburse your car expenses. Under this method, your employer pays an allowance that includes a combination of payments covering fixed and variable costs, such as a cents-per-mile rate to cover your variable operating costs (such as gas, oil, etc.) plus a flat amount to cover your fixed costs (such as depreciation (or lease payments), insurance, etc.). If your employer chooses to use this method, your employer will request the necessary records from you.

If your reimbursement is in the form of an allowance received under an accountable plan, the following facts affect your reporting.

Whether the allowance or your actual expenses were more than the federal rate.

If your allowance is less than or equal to the federal rate, the allowance won’t be included in box 1 of your Form W-2. You don’t need to report the related expenses or the allowance on your return if your expenses are equal to or less than the allowance.

However, if your actual expenses are more than your allowance, you can complete Form 2106. If you are using actual expenses, you must be able to prove to the IRS the total amount of your expenses and reimbursements for the entire year. If you are using the standard meal allowance or the standard mileage rate, you don’t have to prove that amount.

In April, a member of a reserve component of the Armed Forces takes a 2-day business trip to Denver. The federal rate for Denver is $278 ($199 lodging + $79 M&IE) per day. As required by their employer's accountable plan, they account for the time (dates), place, and business purpose of the trip. Their employer reimburses them $278 a day ($556 total) for living expenses. Their living expenses in Denver aren’t more than $278 a day.

Their employer doesn’t include any of the reimbursement on their Form W-2 and they don’t deduct the expenses on their return.

In June, a fee-basis local government official takes a 2-day business trip to Boston. Their employer uses the high-low method to reimburse employees. Because Boston is a high-cost area, they are given an advance of $297 (which includes $74 for M&IE) a day ($594 total) for their lodging and M&IE. Their actual expenses totaled $700.

Since their $700 of expenses are more than their $594 advance, they include the excess expenses when they itemize their deductions. They complete Form 2106 (showing all of their expenses and reimbursements). They must also allocate their reimbursement between their meals and other expenses as discussed later under Completing Form 2106 .

A fee-basis state government official drives 10,000 miles during 2023 for business. Under their employer's accountable plan, they account for the time (dates), place, and business purpose of each trip. Their employer pays them a mileage allowance of 40 cents ($0.40) a mile.

Because their $6,550 expense figured under the standard mileage rate (10,000 miles x 65.5 cents ($0.655) per mile) is more than their $4,000 reimbursement (10,000 miles × 40 cents ($0.40)), they itemize their deductions to claim the excess expense. They complete Form 2106 (showing all their expenses and reimbursements) and enter $2,550 ($6,550 − $4,000) as an itemized deduction.

If your allowance is more than the federal rate, your employer must include the allowance amount up to the federal rate under code L in box 12 of your Form W-2. This amount isn’t taxable. However, the excess allowance will be included in box 1 of your Form W-2. You must report this part of your allowance as if it were wage income.

If your actual expenses are less than or equal to the federal rate, you don’t complete Form 2106 or claim any of your expenses on your return.

However, if your actual expenses are more than the federal rate, you can complete Form 2106 and deduct those excess expenses. You must report on Form 2106 your reimbursements up to the federal rate (as shown under code L in box 12 of your Form W-2) and all your expenses. You should be able to prove these amounts to the IRS.

Sasha, a performing artist, lives and works in Austin. In July, the employer sent Sasha to Albuquerque for 4 days on business. The employer paid the hotel directly for Sasha’s lodging and reimbursed $80 a day ($320 total) for M&IE. Sasha’s actual meal expenses weren’t more than the federal rate for Albuquerque, which is $69 per day.

The employer included the $44 that was more than the federal rate (($80 − $69) × 4) in box 1 of Sasha’s Form W-2. The employer shows $276 ($69 a day × 4) under code L in box 12 of Form W-2. This amount isn’t included in income. Sasha doesn’t have to complete Form 2106; however, Sasha must include the $44 in gross income as wages (by reporting the total amount shown in box 1 of their Form W-2).

Another performing artist, Ari, also lives in Austin and works for the same employer as in Example 1 . In May, the employer sent Ari to San Diego for 4 days and paid the hotel directly for the hotel bill. The employer reimbursed Ari $75 a day for M&IE. The federal rate for San Diego is $74 a day.

Ari can prove that actual non-entertainment-related meal expenses totaled $380. The employer's accountable plan won’t pay more than $75 a day for travel to San Diego, so Ari doesn’t give the employer the records that prove that the amount actually spent was $380. However, Ari does account for the time (dates), place, and business purpose of the trip. This is Ari’s only business trip this year.

Ari was reimbursed $300 ($75 × 4 days), which is $4 more than the federal rate of $296 ($74 × 4 days). The employer includes the $4 as income on the employee’s Form W-2 in box 1. The employer also enters $296 under code L in box 12 of the employee’s Form W-2.

Ari completes Form 2106 to figure deductible expenses and enters the total of actual expenses for the year ($380) on Form 2106. Ari also enters the reimbursements that weren’t included in income ($296). Ari’s total deductible meals and beverages expense, before the 50% limit, is $96. Ari will include $48 as an itemized deduction.

Palmer, a fee-basis state government official, drives 10,000 miles during 2023 for business. Under the employer's accountable plan, Palmer gets reimbursed 70 cents ($0.70) a mile, which is more than the standard mileage rate. The total reimbursement is $7,000.

The employer must include the reimbursement amount up to the standard mileage rate, $6,550 (10,000 miles x 65.5 cents ($0.655) per mile), under code L in box 12 of the employee’s Form W-2. That amount isn’t taxable. The employer must also include $450 ($7,000 − $6,550) in box 1 of the employee's Form W-2. This is the reimbursement that is more than the standard mileage rate.

If the expenses are equal to or less than the standard mileage rate, Palmer wouldn’t complete Form 2106. If the expenses are more than the standard mileage rate, Palmer would complete Form 2106 and report total expenses and reimbursement (shown under code L in box 12 of their Form W-2). Palmer would then claim the excess expenses as an itemized deduction.

Returning Excess Reimbursements

Under an accountable plan, you are required to return any excess reimbursement or other expense allowances for your business expenses to the person paying the reimbursement or allowance. Excess reimbursement means any amount for which you didn’t adequately account within a reasonable period of time. For example, if you received a travel advance and you didn’t spend all the money on business-related expenses or you don’t have proof of all your expenses, you have an excess reimbursement.

Adequate accounting and reasonable period of time were discussed earlier in this chapter.

You receive a travel advance if your employer provides you with an expense allowance before you actually have the expense, and the allowance is reasonably expected to be no more than your expense. Under an accountable plan, you are required to adequately account to your employer for this advance and to return any excess within a reasonable period of time.

If you don’t adequately account for or don't return any excess advance within a reasonable period of time, the amount you don’t account for or return will be treated as having been paid under a nonaccountable plan (discussed later).

If you don’t prove that you actually traveled on each day for which you received a per diem or car allowance (proving the elements described in Table 5-1 ), you must return this unproven amount of the travel advance within a reasonable period of time. If you don’t do this, the unproven amount will be considered paid under a nonaccountable plan (discussed later).

If your employer's accountable plan pays you an allowance that is higher than the federal rate, you don’t have to return the difference between the two rates for the period you can prove business-related travel expenses. However, the difference will be reported as wages on your Form W-2. This excess amount is considered paid under a nonaccountable plan (discussed later).

Your employer sends you on a 5-day business trip to Phoenix in March 2023 and gives you a $400 ($80 × 5 days) advance to cover your M&IE. The federal per diem for M&IE for Phoenix is $69. Your trip lasts only 3 days. Under your employer's accountable plan, you must return the $160 ($80 × 2 days) advance for the 2 days you didn’t travel. For the 3 days you did travel, you don’t have to return the $33 difference between the allowance you received and the federal rate for Phoenix (($80 − $69) × 3 days). However, the $33 will be reported on your Form W-2 as wages.

Nonaccountable Plans

A nonaccountable plan is a reimbursement or expense allowance arrangement that doesn’t meet one or more of the three rules listed earlier under Accountable Plans .

In addition, even if your employer has an accountable plan, the following payments will be treated as being paid under a nonaccountable plan.

Excess reimbursements you fail to return to your employer.

Reimbursement of nondeductible expenses related to your employer's business. See Reimbursement of nondeductible expenses , earlier, under Accountable Plans.

If you aren’t sure if the reimbursement or expense allowance arrangement is an accountable or nonaccountable plan, ask your employer.

Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay. Your employer will report the total in box 1 of your Form W-2.

You must complete Form 2106 and itemize your deductions to deduct your expenses for travel, transportation, or non-entertainment-related meals. Your meal and entertainment expenses will be subject to the 50% Limit discussed in chapter 2.

Your employer gives you $1,000 a month ($12,000 total for the year) for your business expenses. You don’t have to provide any proof of your expenses to your employer, and you can keep any funds that you don’t spend.

You are a performing artist and are being reimbursed under a nonaccountable plan. Your employer will include the $12,000 on your Form W-2 as if it were wages. If you want to deduct your business expenses, you must complete Form 2106 and itemize your deductions.

You are paid $2,000 a month by your employer. On days that you travel away from home on business, your employer designates $50 a day of your salary as paid to reimburse your travel expenses. Because your employer would pay your monthly salary whether or not you were traveling away from home, the arrangement is a nonaccountable plan. No part of the $50 a day designated by your employer is treated as paid under an accountable plan.

Rules for Independent Contractors and Clients

This section provides rules for independent contractors who incur expenses on behalf of a client or customer. The rules cover the reporting and substantiation of certain expenses discussed in this publication, and they affect both independent contractors and their clients or customers.

You are considered an independent contractor if you are self-employed and you perform services for a customer or client.

Accounting to Your Client

If you received a reimbursement or an allowance for travel, or gift expenses that you incurred on behalf of a client, you should provide an adequate accounting of these expenses to your client. If you don’t account to your client for these expenses, you must include any reimbursements or allowances in income. You must keep adequate records of these expenses whether or not you account to your client for these expenses.

If you don’t separately account for and seek reimbursement for meal and entertainment expenses in connection with providing services for a client, you are subject to the 50% limit on those expenses. See 50% Limit in chapter 2.

As a self-employed person, you adequately account by reporting your actual expenses. You should follow the recordkeeping rules in chapter 5 .

For information on how to report expenses on your tax return, see Self-employed at the beginning of this chapter.

Required Records for Clients or Customers

If you are a client or customer, you generally don’t have to keep records to prove the reimbursements or allowances you give, in the course of your business, to an independent contractor for travel or gift expenses incurred on your behalf. However, you must keep records if:

You reimburse the contractor for entertainment expenses incurred on your behalf, and

The contractor adequately accounts to you for these expenses.

If the contractor adequately accounts to you for non-entertainment-related meal expenses, you (the client or customer) must keep records documenting each element of the expense, as explained in chapter 5 . Use your records as proof for a deduction on your tax return. If non-entertainment-related meal expenses are accounted for separately, you are subject to the 50% limit on meals. If the contractor adequately accounts to you for reimbursed amounts, you don’t have to report the amounts on an information return.

If the contractor doesn’t adequately account to you for allowances or reimbursements of non-entertainment-related meal expenses, you don’t have to keep records of these items. You aren’t subject to the 50% limit on meals in this case. You can deduct the reimbursements or allowances as payment for services if they are ordinary and necessary business expenses. However, you must file Form 1099-MISC to report amounts paid to the independent contractor if the total of the reimbursements and any other fees is $600 or more during the calendar year.

How To Use Per Diem Rate Tables

This section contains information about the per diem rate substantiation methods available and the choice of rates you must make for the last 3 months of the year.

The Two Substantiation Methods

IRS Notices list the localities that are treated under the high-low substantiation method as high-cost localities for all or part of the year. Notice 2022-44, available at IRS.gov/irb/2022-41_IRB#NOT-2022-44 , lists the high-cost localities that are eligible for $297 (which includes $74 for meals and incidental expenses (M&IE)) per diem, effective October 1, 2022. For travel on or after October 1, 2022, all other localities within the continental United States (CONUS) are eligible for $204 (which includes $64 for M&IE) per diem under the high-low method.

Notice 2023-68, available at IRS.gov/irb/2023-41_IRB#NOT-2023-68 , lists the high-cost localities that are eligible for $309 (which includes $74 for M&IE) per diem, effective October 1, 2023. For travel on or after October 1, 2023, the per diem for all other localities increased to $214 (which includes $64 for M&IE).

Regular federal per diem rates are published by the General Services Administration (GSA). Both tables include the separate rate for M&IE for each locality. The rates listed for FY2023 at GSA.gov/travel/plan-book/per-diem-rates are effective October 1, 2022, and those listed for FY2024 are effective October 1, 2023. The standard rate for all locations within CONUS not specifically listed for FY2023 is $157 ($98 for lodging and $59 for M&IE). For FY2024, this rate increases to $166 ($107 for lodging and $59 for M&IE).

Transition Rules

The transition period covers the last 3 months of the calendar year, from the time that new rates are effective (generally, October 1) through December 31. During this period, you may generally change to the new rates or finish out the year with the rates you had been using.

If you use the high-low substantiation method, when new rates become effective (generally, October 1), you can either continue with the rates you used for the first part of the year or change to the new rates. However, you must continue using the high-low method for the rest of the calendar year (through December 31). If you are an employer, you must use the same rates for all employees reimbursed under the high-low method during that calendar year.

The new rates and localities for the high-low method are included each year in a notice that is generally published in mid to late September. You can find the notice in the weekly Internal Revenue Bulletin (IRB) at IRS.gov/IRB , or visit IRS.gov and enter “Special Per Diem Rates” in the search box.

New CONUS per diem rates become effective on October 1 of each year and remain in effect through September 30 of the following year. Employees being reimbursed under the per diem rate method during the first 9 months of a year (January 1–September 30) must continue under the same method through the end of that calendar year (December 31). However, for travel by these employees from October 1 through December 31, you can choose to continue using the same per diem rates or use the new rates.

The new federal CONUS per diem rates are published each year, generally early in September. Go to GSA.gov/travel/plan-book/per-diem-rates .

Completing Form 2106

For tax years beginning after 2017, the Form 2106 will be used by Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses. Due to the suspension of miscellaneous itemized deductions subject to the 2% floor under section 67(a), employees who do not fit into one of the listed categories may not use Form 2106.

This section briefly describes how employees complete Forms 2106. Table 6-1 explains what the employer reports on Form W-2 and what the employee reports on Form 2106. The instructions for the forms have more information on completing them.

Table 6-1. Reporting Travel, Nonentertainment Meal, Gift, and Car Expenses and Reimbursements

If you used a car to perform your job as an employee, you may be able to deduct certain car expenses. These are generally figured on Form 2106, Part II, and then claimed on Form 2106, Part I, line 1, column A.

If you claim any deduction for the business use of a car, you must answer certain questions and provide information about the use of the car. The information relates to the following items.

Date placed in service.

Mileage (total, business, commuting, and other personal mileage).

Percentage of business use.

After-work use.

Use of other vehicles.

Whether you have evidence to support the deduction.

Whether or not the evidence is written.

If you claim a deduction based on the standard mileage rate instead of your actual expenses, you must complete Form 2106, Part II, Section B. The amount on line 22 (Section B) is carried to Form 2106, Part I, line 1. In addition, on Part I, line 2, you can deduct parking fees and tolls that apply to the business use of the car. See Standard Mileage Rate in chapter 4 for information on using this rate.

If you claim a deduction based on actual car expenses, you must complete Form 2106, Part II, Section C. In addition, unless you lease your car, you must complete Section D to show your depreciation deduction and any section 179 deduction you claim.

If you are still using a car that is fully depreciated, continue to complete Section C. Since you have no depreciation deduction, enter zero on line 28. In this case, don’t complete Section D.

If you claim car rental expenses on Form 2106, line 24a, you may have to reduce that expense by an inclusion amount , as described in chapter 4. If so, you can show your car expenses and any inclusion amount as follows.

Figure the inclusion amount without taking into account your business-use percentage for the tax year.

Report the inclusion amount from (1) on Form 2106, Part II, line 24b.

Report on line 24c the net amount of car rental expenses (total car rental expenses minus the inclusion amount figured in (1)).

Show your transportation expenses that didn’t involve overnight travel on Form 2106, line 2, column A. Also include on this line business expenses you have for parking fees and tolls. Don’t include expenses of operating your car or expenses of commuting between your home and work.

Show your other employee business expenses on Form 2106, lines 3 and 4, column A. Don’t include expenses for nonentertainment meals on those lines. Line 4 is for expenses such as gifts, educational expenses (tuition and books), office-in-the-home expenses, and trade and professional publications.

Show the full amount of your expenses for nonentertainment business-related meals on Form 2106, line 5, column B. Include meals while away from your tax home overnight and other business meals. Enter 50% of the line 8, column B, meal expenses on line 9, column B.

If you are subject to the Department of Transportation's “hours of service” limits (as explained earlier under Individuals subject to hours of service limits in chapter 2), use 80% instead of 50% for meals while away from your tax home.

Enter on Form 2106, line 7, the amounts your employer (or third party) reimbursed you that weren’t reported to you in box 1 of your Form W-2. This includes any amount reported under code L in box 12 of Form W-2.

If you were reimbursed under an accountable plan and want to deduct excess expenses that weren’t reimbursed, you may have to allocate your reimbursement. This is necessary when your employer pays your reimbursement in the following manner.

Pays you a single amount that covers non-entertainment-related meals and/or entertainment, as well as other business expenses.

Doesn’t clearly identify how much is for deductible non-entertainment-related meals.

Your employer paid you an expense allowance of $12,000 this year under an accountable plan. The $12,000 payment consisted of $5,000 for airfare and $7,000 for non-entertainment-related meals, and car expenses. Your employer didn’t clearly show how much of the $7,000 was for the cost of deductible non-entertainment-related meals. You actually spent $14,000 during the year ($5,500 for airfare, $4,500 for non-entertainment-related meals, and $4,000 for car expenses).

Since the airfare allowance was clearly identified, you know that $5,000 of the payment goes in column A, line 7, of Form 2106. To allocate the remaining $7,000, you use the worksheet from the Instructions for Form 2106. Your completed worksheet follows.

Reimbursement Allocation Worksheet (Keep for your records.)

If you are a government official paid on a fee basis, a performing artist, an Armed Forces reservist, or a disabled employee with impairment-related work expenses, see Special Rules , later.

Your employee business expenses may be subject to either of the limits described next. They are figured in the following order on the specified form.

Certain non-entertainment-related meal expenses are subject to a 50% limit. Generally, entertainment expenses are nondeductible if paid or incurred after December 2017. If you are an employee, you figure this limit on line 9 of Form 2106. (See 50% Limit in chapter 2.)

Limitations on itemized deductions are suspended for tax years beginning after 2017 and before tax year January 2026, per section 68(g).

Special Rules

This section discusses special rules that apply only to Armed Forces reservists, government officials who are paid on a fee basis, performing artists, and disabled employees with impairment-related work expenses. For tax years beginning after 2017, they are the only taxpayers who can use Form 2106.

Armed Forces Reservists Traveling More Than 100 Miles From Home

If you are a member of a reserve component of the Armed Forces of the United States and you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you can deduct your travel expenses as an adjustment to gross income rather than as a miscellaneous itemized deduction. The amount of expenses you can deduct as an adjustment to gross income is limited to the regular federal per diem rate (for lodging and M&IE) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees, and tolls. See Per Diem and Car Allowances , earlier, for more information.

You are a member of a reserve component of the Armed Forces of the United States if you are in the Army, Navy, Marine Corps, Air Force, or Coast Guard Reserve; the Army National Guard of the United States; the Air National Guard of the United States; or the Reserve Corps of the Public Health Service.

If you have reserve-related travel that takes you more than 100 miles from home, you should first complete Form 2106. Then include your expenses for reserve travel over 100 miles from home, up to the federal rate, from Form 2106, line 10, in the total on Schedule 1 (Form 1040), line 12.

You can’t deduct expenses of travel that doesn’t take you more than 100 miles from home as an adjustment to gross income.

Certain fee-basis officials can claim their employee business expenses on Form 2106.

Fee-basis officials are persons who are employed by a state or local government and who are paid in whole or in part on a fee basis. They can deduct their business expenses in performing services in that job as an adjustment to gross income rather than as a miscellaneous itemized deduction.

If you are a fee-basis official, include your employee business expenses from Form 2106, line 10, in the total on Schedule 1 (Form 1040), line 12.

Expenses of Certain Performing Artists

If you are a performing artist, you may qualify to deduct your employee business expenses as an adjustment to gross income. To qualify, you must meet all of the following requirements.

During the tax year, you perform services in the performing arts as an employee for at least two employers.

You receive at least $200 each from any two of these employers.

Your related performing-arts business expenses are more than 10% of your gross income from the performance of those services.

Your adjusted gross income isn’t more than $16,000 before deducting these business expenses.

If you are married, you must file a joint return unless you lived apart from your spouse at all times during the tax year. If you file a joint return, you must figure requirements (1), (2), and (3) separately for both you and your spouse. However, requirement (4) applies to your and your spouse's combined adjusted gross income.

If you meet all of the above requirements, you should first complete Form 2106. Then you include your performing-arts-related expenses from Form 2106, line 10, in the total on Schedule 1 (Form 1040), line 12.

If you don’t meet all of the above requirements, you don’t qualify to deduct your expenses as an adjustment to gross income.

If you are an employee with a physical or mental disability, your impairment-related work expenses aren’t subject to the 2%-of-adjusted-gross-income limit that applies to most other employee business expenses. After you complete Form 2106, enter your impairment-related work expenses from Form 2106, line 10, on Schedule A (Form 1040), line 16, and identify the type and amount of this expense on the line next to line 16.

Impairment-related work expenses are your allowable expenses for attendant care at your workplace and other expenses in connection with your workplace that are necessary for you to be able to work.

You are disabled if you have:

A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed; or

A physical or mental impairment (for example, a sight or hearing impairment) that substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, or working.

You can deduct impairment-related expenses as business expenses if they are:

Necessary for you to do your work satisfactorily;

For goods and services not required or used, other than incidentally, in your personal activities; and

Not specifically covered under other income tax laws.

You are blind. You must use a reader to do your work. You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. The reader's services are only for your work. You can deduct your expenses for the reader as business expenses.

You are deaf. You must use a sign language interpreter during meetings while you are at work. The interpreter's services are used only for your work. You can deduct your expenses for the interpreter as business expenses.

How To Get Tax Help

If you have questions about a tax issue; need help preparing your tax return; or want to download free publications, forms, or instructions, go to IRS.gov to find resources that can help you right away.

After receiving all your wage and earnings statements (Forms W-2, W-2G, 1099-R, 1099-MISC, 1099-NEC, etc.); unemployment compensation statements (by mail or in a digital format) or other government payment statements (Form 1099-G); and interest, dividend, and retirement statements from banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you qualify for free tax preparation, or hire a tax professional to prepare your return.

Your options for preparing and filing your return online or in your local community, if you qualify, include the following.

Free File. This program lets you prepare and file your federal individual income tax return for free using software or Free File Fillable Forms. However, state tax preparation may not be available through Free File. Go to IRS.gov/FreeFile to see if you qualify for free online federal tax preparation, e-filing, and direct deposit or payment options.

VITA. The Volunteer Income Tax Assistance (VITA) program offers free tax help to people with low-to-moderate incomes, persons with disabilities, and limited-English-speaking taxpayers who need help preparing their own tax returns. Go to IRS.gov/VITA , download the free IRS2Go app, or call 800-906-9887 for information on free tax return preparation.

TCE. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors. Go to IRS.gov/TCE or download the free IRS2Go app for information on free tax return preparation.

MilTax. Members of the U.S. Armed Forces and qualified veterans may use MilTax, a free tax service offered by the Department of Defense through Military OneSource. For more information, go to MilitaryOneSource ( MilitaryOneSource.mil/MilTax ).

Also, the IRS offers Free Fillable Forms, which can be completed online and then e-filed regardless of income.

Go to IRS.gov/Tools for the following.

The Earned Income Tax Credit Assistant ( IRS.gov/EITCAssistant ) determines if you’re eligible for the earned income credit (EIC).

The Online EIN Application ( IRS.gov/EIN ) helps you get an employer identification number (EIN) at no cost.

The Tax Withholding Estimator ( IRS.gov/W4App ) makes it easier for you to estimate the federal income tax you want your employer to withhold from your paycheck. This is tax withholding. See how your withholding affects your refund, take-home pay, or tax due.

The First Time Homebuyer Credit Account Look-up ( IRS.gov/HomeBuyer ) tool provides information on your repayments and account balance.

The Sales Tax Deduction Calculator ( IRS.gov/SalesTax ) figures the amount you can claim if you itemize deductions on Schedule A (Form 1040).

Go to IRS.gov/Help : A variety of tools to help you get answers to some of the most common tax questions.

Go to IRS.gov/ITA : The Interactive Tax Assistant, a tool that will ask you questions and, based on your input, provide answers on a number of tax topics.

Go to IRS.gov/Forms : Find forms, instructions, and publications. You will find details on the most recent tax changes and interactive links to help you find answers to your questions.

You may also be able to access tax information in your e-filing software.

There are various types of tax return preparers, including enrolled agents, certified public accountants (CPAs), accountants, and many others who don’t have professional credentials. If you choose to have someone prepare your tax return, choose that preparer wisely. A paid tax preparer is:

Primarily responsible for the overall substantive accuracy of your return,

Required to sign the return, and

Required to include their preparer tax identification number (PTIN).

The Social Security Administration (SSA) offers online service at SSA.gov/employer for fast, free, and secure W-2 filing options to CPAs, accountants, enrolled agents, and individuals who process Form W-2, Wage and Tax Statement, and Form W-2c, Corrected Wage and Tax Statement.

Go to IRS.gov/SocialMedia to see the various social media tools the IRS uses to share the latest information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are our highest priority. We use these tools to share public information with you. Don’t post your social security number (SSN) or other confidential information on social media sites. Always protect your identity when using any social networking site.

The following IRS YouTube channels provide short, informative videos on various tax-related topics in English, Spanish, and ASL.

Youtube.com/irsvideos .

Youtube.com/irsvideosmultilingua .

Youtube.com/irsvideosASL .

The IRS Video portal ( IRSVideos.gov ) contains video and audio presentations for individuals, small businesses, and tax professionals.

You can find information on IRS.gov/MyLanguage if English isn’t your native language.

The IRS is committed to serving taxpayers with limited-English proficiency (LEP) by offering OPI services. The OPI Service is a federally funded program and is available at Taxpayer Assistance Centers (TACs), most IRS offices, and every VITA/TCE tax return site. The OPI Service is accessible in more than 350 languages.

Taxpayers who need information about accessibility services can call 833-690-0598. The Accessibility Helpline can answer questions related to current and future accessibility products and services available in alternative media formats (for example, braille, large print, audio, etc.). The Accessibility Helpline does not have access to your IRS account. For help with tax law, refunds, or account-related issues, go to IRS.gov/LetUsHelp .

Form 9000, Alternative Media Preference, or Form 9000(SP) allows you to elect to receive certain types of written correspondence in the following formats.

Standard Print.

Large Print.

Audio (MP3).

Plain Text File (TXT).

Braille Ready File (BRF).

Go to IRS.gov/DisasterRelief to review the available disaster tax relief.

Go to IRS.gov/Forms to view, download, or print all the forms, instructions, and publications you may need. Or, you can go to IRS.gov/OrderForms to place an order.

Download and view most tax publications and instructions (including the Instructions for Form 1040) on mobile devices as eBooks at IRS.gov/eBooks .

IRS eBooks have been tested using Apple's iBooks for iPad. Our eBooks haven’t been tested on other dedicated eBook readers, and eBook functionality may not operate as intended.

Go to IRS.gov/Account to securely access information about your federal tax account.

View the amount you owe and a breakdown by tax year.

See payment plan details or apply for a new payment plan.

Make a payment or view 5 years of payment history and any pending or scheduled payments.

Access your tax records, including key data from your most recent tax return, and transcripts.

View digital copies of select notices from the IRS.

Approve or reject authorization requests from tax professionals.

View your address on file or manage your communication preferences.

With an online account, you can access a variety of information to help you during the filing season. You can get a transcript, review your most recently filed tax return, and get your adjusted gross income. Create or access your online account at IRS.gov/Account .

This tool lets your tax professional submit an authorization request to access your individual taxpayer IRS online account. For more information, go to IRS.gov/TaxProAccount .

The safest and easiest way to receive a tax refund is to e-file and choose direct deposit, which securely and electronically transfers your refund directly into your financial account. Direct deposit also avoids the possibility that your check could be lost, stolen, destroyed, or returned undeliverable to the IRS. Eight in 10 taxpayers use direct deposit to receive their refunds. If you don’t have a bank account, go to IRS.gov/DirectDeposit for more information on where to find a bank or credit union that can open an account online.

Tax-related identity theft happens when someone steals your personal information to commit tax fraud. Your taxes can be affected if your SSN is used to file a fraudulent return or to claim a refund or credit.

The IRS doesn’t initiate contact with taxpayers by email, text messages (including shortened links), telephone calls, or social media channels to request or verify personal or financial information. This includes requests for personal identification numbers (PINs), passwords, or similar information for credit cards, banks, or other financial accounts.

Go to IRS.gov/IdentityTheft , the IRS Identity Theft Central webpage, for information on identity theft and data security protection for taxpayers, tax professionals, and businesses. If your SSN has been lost or stolen or you suspect you’re a victim of tax-related identity theft, you can learn what steps you should take.

Get an Identity Protection PIN (IP PIN). IP PINs are six-digit numbers assigned to taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return with your SSN. To learn more, go to IRS.gov/IPPIN .

Go to IRS.gov/Refunds .

Download the official IRS2Go app to your mobile device to check your refund status.

Call the automated refund hotline at 800-829-1954.

Payments of U.S. tax must be remitted to the IRS in U.S. dollars. Digital assets are not accepted. Go to IRS.gov/Payments for information on how to make a payment using any of the following options.

IRS Direct Pay : Pay your individual tax bill or estimated tax payment directly from your checking or savings account at no cost to you.

Debit Card, Credit Card, or Digital Wallet : Choose an approved payment processor to pay online or by phone.

Electronic Funds Withdrawal : Schedule a payment when filing your federal taxes using tax return preparation software or through a tax professional.

Electronic Federal Tax Payment System : Best option for businesses. Enrollment is required.

Check or Money Order : Mail your payment to the address listed on the notice or instructions.

Cash : You may be able to pay your taxes with cash at a participating retail store.

Same-Day Wire : You may be able to do same-day wire from your financial institution. Contact your financial institution for availability, cost, and time frames.

Note. The IRS uses the latest encryption technology to ensure that the electronic payments you make online, by phone, or from a mobile device using the IRS2Go app are safe and secure. Paying electronically is quick, easy, and faster than mailing in a check or money order.

Go to IRS.gov/Payments for more information about your options.

Apply for an online payment agreement ( IRS.gov/OPA ) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once you complete the online process, you will receive immediate notification of whether your agreement has been approved.

Use the Offer in Compromise Pre-Qualifier to see if you can settle your tax debt for less than the full amount you owe. For more information on the Offer in Compromise program, go to IRS.gov/OIC .

Go to IRS.gov/Form1040X for information and updates.

Go to IRS.gov/WMAR to track the status of Form 1040-X amended returns.

Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter.

You can now upload responses to all notices and letters using the Document Upload Tool. For notices that require additional action, taxpayers will be redirected appropriately on IRS.gov to take further action. To learn more about the tool, go to IRS.gov/Upload .

You can use Schedule LEP (Form 1040), Request for Change in Language Preference, to state a preference to receive notices, letters, or other written communications from the IRS in an alternative language. You may not immediately receive written communications in the requested language. The IRS’s commitment to LEP taxpayers is part of a multi-year timeline that began providing translations in 2023. You will continue to receive communications, including notices and letters, in English until they are translated to your preferred language.

Keep in mind, many questions can be answered on IRS.gov without visiting a TAC. Go to IRS.gov/LetUsHelp for the topics people ask about most. If you still need help, TACs provide tax help when a tax issue can’t be handled online or by phone. All TACs now provide service by appointment, so you’ll know in advance that you can get the service you need without long wait times. Before you visit, go to IRS.gov/TACLocator to find the nearest TAC and to check hours, available services, and appointment options. Or, on the IRS2Go app, under the Stay Connected tab, choose the Contact Us option and click on “Local Offices.”

The Taxpayer Advocate Service (TAS) Is Here To Help You

TAS is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. TAS strives to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights .

The Taxpayer Bill of Rights describes 10 basic rights that all taxpayers have when dealing with the IRS. Go to TaxpayerAdvocate.IRS.gov to help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them.

TAS can help you resolve problems that you can’t resolve with the IRS. And their service is free. If you qualify for their assistance, you will be assigned to one advocate who will work with you throughout the process and will do everything possible to resolve your issue. TAS can help you if:

Your problem is causing financial difficulty for you, your family, or your business;

You face (or your business is facing) an immediate threat of adverse action; or

You’ve tried repeatedly to contact the IRS but no one has responded, or the IRS hasn’t responded by the date promised.

TAS has offices in every state, the District of Columbia, and Puerto Rico . To find your advocate’s number:

Go to TaxpayerAdvocate.IRS.gov/Contact-Us ;

Download Pub. 1546, The Taxpayer Advocate Service Is Your Voice at the IRS, available at IRS.gov/pub/irs-pdf/p1546.pdf ;

Call the IRS toll free at 800-TAX-FORM (800-829-3676) to order a copy of Pub. 1546;

Check your local directory; or

Call TAS toll free at 877-777-4778.

TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, report it to TAS at IRS.gov/SAMS . Be sure to not include any personal taxpayer information.

LITCs are independent from the IRS and TAS. LITCs represent individuals whose income is below a certain level and who need to resolve tax problems with the IRS. LITCs can represent taxpayers in audits, appeals, and tax collection disputes before the IRS and in court. In addition, LITCs can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Services are offered for free or a small fee. For more information or to find an LITC near you, go to the LITC page at TaxpayerAdvocate.IRS.gov/LITC or see IRS Pub. 4134, Low Income Taxpayer Clinic List , at IRS.gov/pub/irs-pdf/p4134.pdf .

Appendices A-1 through A-6 show the lease inclusion amounts that you may need to report if you first leased a passenger automobile (including a truck and van) in 2018 through 2023 for 30 days or more.

If any of these apply to you, use the appendix for the year you first leased the car. (See Leasing a Car in chapter 4.)

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• Immigration

U.S. Visa Invitation Letter Guide with Sample Letters

Learn how to write an invitation letter for a u.s. visa with detailed information and two sample invitation letters. get a u.s. visa invitation letter sample today..

Key Takeaways:

• Learn how to write a U.S. visa invitation letter with key components, formatting tips, and sample letters to help you craft your own.
• An invitation letter can be a useful piece of evidence for the U.S. Consulate, showing the visitor’s intent and reason to return.
• Include important details such as your full name, address, relationship with the visitor, purpose of visit, and your intention to cover expenses.

If you’re planning to invite friends or family to visit you in the United States, one of the requirements they may need to fulfill is obtaining a U.S. visa. As a part of this process, an invitation letter written by you can help establish the purpose of their visit. In this blog post, we’ll cover how to write an invitation letter for a U.S. visa and provide two sample invitation letters to help you craft your own.

Understanding the Importance of a U.S. Visa Invitation Letter

A U.S. Visa Invitation Letter is a personal document, and while it is not a mandatory requirement, it can be a useful piece of evidence that shows the U.S. Consulate that the visitor has a reason to return to their home country after visiting the United States. It can also explain why you are inviting them, which may help the consulate understand the visitor’s intent.

Key Components of an Invitation Letter

When writing a U.S. Visa Invitation Letter, it should include the following information:

• Your full name, date of birth, address and telephone number in the United States.
• Your occupation and your status in the United States.
• A clear statement of your relationship with the visiting individual.
• Detailed information on the planned visit including the purposes of traveling, where the visitor will stay, and how long the visit will last.
• Your intention to cover all living expenses, accommodation, and travel costs, if applicable.

It’s also helpful if the letter can include details such as:

• Your legal status in the U.S. (e.g., citizen, permanent resident).
• The visitor’s full name, date of birth, and their address and telephone number.

Remember to sign and date the letter. Attach any supporting documents, like a photocopy of your ID or passport, evidence of your status in the U.S., and proof of your relationship with the visitor.

Also of Interest:

H-1b visa processing times and fees chart, how much is the cost of h-1b application process, formatting the invitation letter.

The U.S. Visa Invitation Letter should be formal, yet personal. It usually does not need to be notarized, but it should be typed and printed on standard paper. The tone should be welcoming and warm, reflecting the personal nature of the invitation.

Sample Invitation Letter 1

Here is a simple sample of what an invitation letter might look like:

[Your Full Name] [Your Street Address] [City, State, Zip Code] [Email Address] [Phone Number] [Date]

Consulate General of [Visitor’s Home Country] [Countries Consular Address]

Subject: Invitation for [Visitor’s Full Name], Passport No: [Visitor’s Passport Number]

Dear Consulate,

I, [Your Full Name], residing at [Your Address], am writing this letter to support the visa application of my [relationship, e.g., friend], [Visitor’s Full Name].

[Visitor’s Full Name] plans to visit the United States briefly for leisure and sightseeing purposes. During their stay, which we anticipate lasting from [arrival date] to [departure date], [he/she/they] will be staying with me at my home. The address is listed above. I will be taking time off work to show [him/her/them] around the city and ensure [he/she/they] experience the diverse cultural heritage of our country.

I am a [Your Occupation] and residing in the U.S. as a [Your Status, e.g., U.S. citizen/permanent resident]. I am providing this letter to attest to my intention to support [Visitor’s Full Name] during [his/her/their] visit. I will ensure to cover all expenses, including but not limited to boarding, food, and travel expenses within the U.S. during the duration of [his/her/their] stay.

Thank you for considering this application. Please feel free to contact me if any further information is required.

[Your Signature] [Typed Name]

Sample Invitation Letter 2

For a different scenario or relationship type, the letter might look slightly different:

[Your Full Name] [Your Occupation] [Your Address] [City, State, Zip Code] [Date]

United States Citizenship and Immigration Services (USCIS) [Service Center Address]

Subject: Invitation Letter for [Family Member’s Full Name]

Dear Sir/Madam,

I’m writing this letter to provide details regarding my invitation for [Family Member’s Full Name] to visit me in the United States.

My name is [Your Full Name], and I’m a [Your Status, e.g., legal permanent resident] working as a [Your Occupation] here in [City, State]. I live at the address above and have been a resident there for the past [number of years/months] years.

I would like to invite [Family Member’s Full Name], who is my [relationship, e.g., mother/father/sibling] to visit me in the United States for [length of the visit]. During their visit, they will be residing with me at my home.

It has been [number of years/months] years since we last saw each other, and this visit would mean a great deal to both of us. We plan to spend quality time and I will also take them to visit various tourist attractions such as [mention specific places or landmarks].

I will ensure that my [family member’s relationship] will have all the necessary care and resources at their disposal and am prepared to bear all the costs during their stay in the United States.

Attached are copies of documents proving my status in the United States and evidence of my financial ability to support this visit.

Please feel free to reach out to me for any further information or clarification needed to process this request.

Appreciatively,

[Your Signature] [Your Full Name]

When sending the invitation letter, it’s advised to include it with the rest of the applicant’s documentation. Visit the official U.S. Department of State’s Bureau of Consular Affairs website for further guidelines on supporting documents for visa applications.

Crafting an invitation letter for a U.S. visa is an opportunity to help facilitate a smooth visa application process for someone you care about. By following the guidelines and using the sample invitation letters provided, you can create a welcoming and supportive document that helps underscore the visitor’s intentions and your support during their visit.

Learn Today:

U.S. Consulate: An official office of the U.S. government located in other countries, responsible for providing consular services to U.S. citizens and processing visa applications.

U.S. Visa Invitation Letter: A personal document written by a U.S. resident or citizen inviting someone from another country to visit the United States. It serves as evidence of the purpose of the visit and may provide details about the inviter and the relationship between the inviter and the visitor.

U.S. Consulate General: A high-level diplomatic officer representing the U.S. government and providing consular services to U.S. citizens in other countries.

Relationship: The connection or bond between the inviter and the visitor, such as being friends, family members, or relatives.

Living Expenses: Costs related to day-to-day necessities, including accommodation, food, transportation, and other essential needs.

Legal Status: The immigration status or classification of an individual in the United States, indicating whether they are a citizen, permanent resident, or have another lawful status.

Notarized: The process of having a document officially certified by a notary public, confirming the authenticity of the signatures and the document’s content.

Photocopy: A reproduction or duplicate of an original document made through the use of a photocopier or scanning device.

Supporting Documents: Additional evidence or documentation submitted along with the invitation letter to strengthen the visitor’s visa application, such as a copy of the inviter’s ID or passport, proof of legal status in the U.S., and proof of relationship with the visitor.

USCIS: United States Citizenship and Immigration Services, an agency within the U.S. Department of Homeland Security responsible for administering the nation’s immigration system.

Service Center: Regional offices of USCIS responsible for processing immigration petitions and applications.

Legal Permanent Resident: An individual who has been granted lawful permanent residence in the United States through obtaining a green card, indicating their status as a permanent resident.

Tourist Attractions: Places or landmarks of interest to visitors that are popular for sightseeing or leisure activities.

Bureau of Consular Affairs: A bureau within the U.S. Department of State responsible for providing visa services, protecting U.S. citizens overseas, and managing U.S. passports and other travel documents.

Visa Application: The process of applying for a visa to enter a country, which involves submitting required forms and supporting documents, attending an interview if necessary, and paying applicable fees.

So, there you have it! Writing an invitation letter for a U.S. visa doesn’t have to be daunting. Just remember to include all the necessary information, keep it warm and personal, and attach any supporting documents. If you want more guidance and sample letters, head over to visaverge.com. They’ve got all the visa-related info you need. Happy letter writing!

This Article in a Nutshell:

To invite friends or family to the U.S., they may need a visa. An invitation letter can help establish the purpose of their visit. Include your contact details, relationship, visit details, and your intention to cover expenses. Keep the tone warm and personal. Remember to sign, date, and attach supporting documents.

Thank you for this information it was very helpful to me …..

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