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Old 07-25-2017, 03:17 PM
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Question How to claim travel expenses

I work as an IT consultant and live in North Carolina (have own house). I work as a full time employee with a consulting firm. Due to project in Boston, MA my employer asking me to relocate but am planning to travel. My employer said company WILL NOT reimburse the travel expense and need to be spend from my pocket.

If I spend the expenses, during the tax filing can I claim these travel expenses to reduce my taxable income and to what extent I can claim these expenses.

Your response will help me to take a decision whether to travel or relocate.



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Old 07-26-2017, 01:49 AM
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I work as an IT consultant and live in North Carolina (have own house). I work as a full time employee with a consulting firm. Due to project in Boston, MA my employer asking me to relocate but am planning to travel. My employer said company WILL NOT reimburse the travel expense and need to be spend from my pocket.=======>>basically, many people travel between locations for their jobs, and wonder about the cost of this travel, particularly as gas and toll prices creep up. Whether you must be reimbursed for travel between sites depends on where you work. In many states, there is no requirement that employers reimburse employees for business expenses, nor is there any federal requirement. If your employer does not reimburse you for your out-of-pocket work-related expenses, you can deduct them as a personal itemized deduction on your SCh A of 1040 I mean so UNLESS you itemize your deductions, you can not claim travel expenses.If you use your car for business purposes you can deduct either the standard mileage rate (55.5 cents per mile in 2017 I guess) or actual car expenses for the year.
However, They are subject to the same rules and limitations as business expenses (with a few variations). Thus, they are deductible only if they are ordinary, necessary, and reasonable in amount.
However, an employee?s deduction for unreimbursed job expenses is subject to an important limitation inapplicable to regular business expenses: Employee expenses fall under the category of miscellaneous itemized deductions, and as such are deductible only if, and to the extent that, they (along with your other miscellaneous deductions) exceed 2% of your adjusted gross income.
For example say, A, an employee salesperson, spends $1,500 for a sales trip that her company does not reimburse her for. She has no other miscellaneous itemized deductions and her AGI is $50K. She may deduct the expense only to the extent it exceeds 2% of her AGI. Since 2% of $50K is $1K, she may only deduct $500 of her $1.5K travel expense.
Because of this limitation, the higher your AGI, the fewer expenses you?ll be able to deduct. It doesn?t seem fair, does it?


If I spend the expenses, during the tax filing can I claim these travel expenses to reduce my taxable income and to what extent I can claim these expenses.========>>as said previously; travel expenses are the ordinary and necessary expenses of traveling away from home for your profession, or job. Generally, employees deduct these expenses by using Form 2106-EZ and Form 1040, Sch A You can't deduct expenses that are lavish or extravagant, or that are for personal purposes. Federal tax laws ALSO allow you to deduct your moving expenses if your relocation relates to starting a new job or a transfer to a new location for your present employer. To qualify for the deduction, your new work location must be a sufficient distance uusally 50 miles or more from your old home and you must begin working shortly after you arrive. Moving expenses are deducted "above-the-line" in the adjustments to income section of Form 1040.That means you don't need to itemize. You can take this deduction in addition to the standard deduction or in addition to any itemized deductionsThe IRS requires that you be employed full time for 39 weeks of the first 12 months of your move in the area of your new job location in order to qualify for moving deductions. It is not required to have spent the 39 weeks at the same job, but rather a full-time job in the area. You will not be penalized by the IRS if you are laid off or transferred again



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