Tax Season For Travelers

Someone in a foam Statue of Liberty costume has begun waving at passersby from the sidewalk. A sign spinner in a neon-pink gorilla suit distracts drivers near a busy intersection over the lunch hour. All signs point to tax season.

Traveling has its perks, like tax-free incentives, but the traveling situation gets a little complicated come tax time. At Cariant, we recommend visiting with a licensed tax professional before filing your taxes. Tax professionals will be up-to-date on any rule changes, and can help you navigate the intricate rules for your “tax home” and travel expenses.

Of note, permanent residences and tax homes are not necessarily the same. Make sure you meet the requirements for a tax home by familiarizing yourself with the IRS guidelines relating to traveling away from home. Your tax home status will affect a good portion of your tax return.

While you cannot be furthermore compensated for expenses already reimbursed by Cariant Health Partners, here is a list of topics to discuss with a tax professional to identify potential deductions:

–       Travel expenses beyond mileage

–       Wear and tear on your primary vehicle

–       National association dues or continuing education costs

–       Special rules for husband and wife travelers

–       Phone, Internet or computer expenses related to work

–       State returns, deadlines and special agreements for multi-state travel years

An experienced tax professional will know what questions to ask you. Be further prepared with your own list and take good notes on what rules apply to you and what documentation to collect throughout the year. That way next tax season will be a breeze.