Thursday, April 5, 2012

Keeping Track of Tax Deductible Travel Expenses

In a world where money is everything, it is crucial to know what business travel expenses are tax deductible, and what are not.  A recent article from USA TODAY gives an overview of why it is crucial to have credible documents handy when filing income tax returns.  Keeping documents as evidence of prudent travel and spending is also handy when one needs to be reimbursed, especially if one is audited.  There are various travel expenses that can be deducted, but the rules and stipulations may be confusing to some.  It is recommended to visit the IRS website, which provides people explanations of the laws in laymen’s terms.

The article reminds business travelers to not spend frivolously on business trips and that even if the IRS does not require the report of receipts under $75; it is beneficial to keep all receipts.  If one does not have accurate records of their expenses in order to back up a claim, they may have to pay interest, the tax itself, and also a penalty.  This is where the benefit of utilizing an automated expense management system comes into play, receipts and other ways of tracking expenses are easily stored and retrievable.

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