How to Deduct Airfare as a Business Expense

When you travel by air for business, you can easily deduct your expenses as a business expense on your taxes. It takes a little planning ahead and organization, but your business airfare can be deducted. Here are the steps you should follow.

Difficulty: Easy

Instructions

1. Keep a special folder for your travel deductions. Each year, you should create, organize and maintain a folder specifically for your business travel airfare expenses, so it is easy to find when it comes time to organize your tax documents.

2. Save your airfare ticket stubs and airline receipts. This is the proof that you actually spent the money on the airfare for the business trip.

3. Ask your employer if he will reimburse you for your travel expenses. It typically is a better financial deal for an individual to receive cash back from an employer for airfare expenses than it is to deduct the airfare expenses on your individual taxes. If you own the business, deciding whether to pay yourself for the airfare is up to you and your accountant.

4. Add your airfare bill each year to your total travel expenses on your income tax filings. You want to file it under travel expenditures. Travel expenditures will then be added in to your total itemized deductions on your taxes for the year.

5. Receive a reduced tax payment for the year or more money back on your taxes due to the deduction of your airfare as a business expense.

Tips & Warnings

• If you are reimbursed by your employer for airfare, you may not deduct the expenses on your taxes. However, speak to your accountant about travel related expenses that may qualify for deductions, such as mileage, airport parking and tolls that weren't reimbursed.