When is commuting tax deductible

You can deduct daily transport expenses when you travel between your home and a temporary work location. Usually this must be outside the metropolitan area where you live and normally work.

If your home is your main place of business, you can deduct transportation expenses you incur. The expenses must be for going from your home to another work location in the same trade or business. Then you visit four more clients during the day, ending up at client number five. All of these trips are business-related and deductible.

Then you head home. This last trip, the "heading home" part of commuting, is not deductible. There are always exceptions. Expenses for travel between your home and other work locations are deductible if your residence is your principal place of business. First, you must establish that your home is your principal place of business.

This is pretty easy if your home is your only place of business, but if you have other places where you work, you must show that:. Whether or not you claim a home office deduction does not have any relationship to the designation of your home as your principal place of business. Then, if you can establish that your home is your principal place of business, you can deduct travel expenses if you work at other locations.

For example, a contractor could deduct travel expenses from his home office to a house where he is doing repairs in order to sell the property for a profit.

If you are traveling between two job sites or work locations, these trips are considered work-related travel, not commuting. For example, if you travel between your day job and a night job, you can claim these expenses as travel, not commuting. Intuit says, "If you work in two places in one day, whether or not for the same employer, you can deduct the cost of going between them. Expenses for travel from your home and a temporary work site outside the metropolitan area where you live and normally work.

The reason for this exception is that it is not reasonable for a business owner to move permanently to a worksite for a job that is only temporary. The Tax Cuts and Jobs Act made some changes to bicycle commuting expenses for businesses and the taxability of these costs to employees. Effective for and beyond, bicycle commuting expenses that are reimbursed to employees can be deducted as a business expense. Temporary assignments. Share on Twitter Tweet.

Share on Facebook Share. Share on LinkedIn Share. Share on Pinterest Share. Send email Mail. Alloy Silverstein. Learn more. TurboTax Help Intuit. Can employees deduct commuting expenses like gas, mileage, fares, and tolls? However, the job-related expenses deduction is still available to people who work in one of these specific professions or situations: Armed Forces reservist Qualified performing artist Fee-basis state or local government official You're disabled and have impairment-related expenses Additionally, job-related expenses may be deductible in your state.