Can You Deduct Commuting Costs On Your Taxes?

Employees who need to travel on a continuous basis (such as Agricultural Extension Educators) or on extended travel may settle their expense accounts every 30 calendar days. The traveler must work with the Financial Officer to justify the need, arrange for funds to be provided, and handle any special arrangements that may be required for reimbursement. The University assumes no obligation to reimburse employees, students, and non-employees for expenses that do not comply with the principles of this policy. Expenditures that do not comply with the University travel policy will be the obligation of the traveler. Additionally, travelers who continually misuse or circumvent the principles of the policy will be subject to additional requirements for documentation and restricted use of any Penn State Purchasing Card privileges.

Employment Expenses Of Transport Employees

This software not only allows employees and employers to manage expenses but provides Finance and HR Departments with tools to analyse and report all expenses. But the most complex change might be that all employers that choose the serious and consistent standards method will need to be able to prove that they are using a nationwide standard value to define the value of the lump sum payment. They can also define this value by analysing previous company costs, but proof of such analysis must be provided. It should also be noted that the company can pay more than the monthly allowance, but any excess payments will be treated as taxable income. In such cases, the employer establishes a standard payment which the employee will receive as reimbursement, regardless of the amount of the expense.


The traveler must also explain any unusual circumstances that
influence the elapsed time for travel by privately owned aircraft. Travelers may redeem frequent flier miles (or use
personal funds) to upgrade to business or first-class accommodations when
performing official travel. Restricted penalty fares should be authorized for
official travel only when their use is practical and economical to the U.S. The
use of prohibited ticketing practices, such as “throw-away,”
“hidden city,” or “back-to-back” ticketing, is not
permitted for any part of either authorized or cost constructed travel
itineraries because those tactics violate air carrier contracts of carriage. The employee also completed and filed signed copies of the special form for transit employees, Form TL2, Claims for meals and lodging expenses, which the taxpayer attached to his 2014 and 2015 tax returns. The form also noted that the employer required the employee to be away for 12 consecutive hours from the municipality and the metropolitan area where he routinely reported for work.

  • These standards are useful in determining whether mileage from one’s home or office is to be used when reporting mileage for reimbursement.
  • There are also additional government reimbursement programs that may apply to individuals taking job- or duty-specific coursework.
  • When a trip is postponed or cancelled, the original priced itinerary sent by the travel source should be retained.
  • The bicycle commuter benefit was added to IRS Code 132(f) as part of the Emergency Economic Stabilization Act of 2008, signed into law on October 3, 2008.
  • The BLS is committed to providing data promptly and according to established schedules.

The online receipt printed when the hotel is booked will serve as an acceptable receipt provided it reflects the dates of the traveler’s stay, the location, and the amount charged. This travel policy complies with the requirements of the many entities served by Penn State. The standards to be met include those of the Internal Revenue Service (IRS) and of federal, state, and non-governmental sponsors. Excerpts from several of the governing regulations are referenced throughout the policy. Home-to-work transportation means the use of a Government passenger carrier to transport an employee between his/her home and place of work. This part covers the use of Government passenger carriers to transport employees between their homes and places of work.


When flying is the economical choice but one chooses to drive and the round trip mileage is 750 miles or more, the reimbursement may not exceed the cost of the lowest available air transport for the same points of origin and destination. The traveler must provide appropriate price quotes from either Travel OnLion or an acceptable travel agency, obtained at the time of the decision to drive vs. fly, to document the appropriate airfare for comparison. The receipt must state the amount of the charge, the date, the name and the location of the establishment, and an explanation of the charge. Express checkout service, where the hotel bill is placed under the guest’s door on the morning of departure, is an acceptable receipt if the traveler has reviewed it and the above requirements are stated. Charges for lodging, meals, phone calls, parking or other services must be itemized. Personal expenses charged to the hotel bill such as in-room movies, laundry, mini-bar service, grooming, or exercising expenses are not allowable and are not eligible for reimbursement.

If there is a question concerning the allowability of the trip, the traveler must contact the Financial Officer or Research Administrator for guidance. This policy is designed to aid University employees in the planning and settlement of their travel when traveling on behalf of the University. You can deduct daily transport expenses when you travel between your home and a temporary work location. A temporary work location is one that’s expected to (and does) last for one year or less. Usually this must be outside the metropolitan area where you live and normally work. If you no longer wish to participate in the plan, you must stop your QTFB deduction at the end of a future pay period of your choosing.

Are Travel Reimbursements Taxable?

These should be categorized as PCard Meal Expense and will be marked as non-reimbursable. In accordance with University travel policy requirements, travelers must arrange their travel at the least possible cost to meet the business purpose of their trip. Travel service for the University have been contracted to Anthony Travel. Anthony Travel will provide full service travel as well as ticketing for the Travel OnLion booking tool for University business travel. There will be times when this policy does not provide specific guidance for a situation a traveler may encounter.

  • At least 80% of the mileage must be for transporting employees between home and work and at least half of the seats (not counting the driver) must be for employees.
  • Employees can use the funds on qualifying expenses, such as public transportation and parking fees.
  • (iii)    The traveler will not be penalized and deprived
    of business-class accommodations if travel is delayed or accelerated due to
    airline schedules rather than to accommodate a traveler’s personal
  • For the years 2022 and 2023, the tax and social security exemption ceilings for the transport bonus and the sustainable mobility package have been raised from 500 euros to 700 euros, including 400 euros (compared to 200 euros previously) for fuel costs.
  • Even companies that keep their offices but switch to half-remote, half-in-person arrangements can reduce costs.

An agency head may elect to designate positions rather than individual names, especially in positions where rapid turnover occurs. The assignment of an employee to such a position does not, of itself, entitle an employee to receive daily home-to-work transportation. (c) When the employee normally commutes to a fixed location, however far removed from his/her official duty station (for example, auditors or investigators assigned to a defense contractor plant). (a) When an employee assigned to field work is not actually performing field work. (b) The use of home-to-work transportation for field work should be authorized only to the extent that such transportation will substantially increase the efficiency and economy of the Government.

Travelers should be aware of these restrictions prior to purchasing a consolidator ticket. They should weigh the potential savings with the risk of these added restrictions. You now have the ability to directly upload your QTFB receipts through HR Self-Service. When you submit your QTFB reimbursement claims online, there will be an option to immediately upload your PDF or image files1.

  • Qualifying van or bus pool vehicles must seat at least six passengers, with at least half the seats filled by employees, and be used at least 80% of the time for employee commuting.
  • Any accident involving a vehicle (owned, leased, rented or personally-owned) driven on University business, must be reported by the driver to the Office of Risk Management within 24 hours, using the Vehicle Accident Report Form.
  • It is not recommended that the traveler attempt to find alternative city parking to avoid hotel rates or valet parking.
  • The taxpayer further explained that he usually started and finished work at the Oshawa GO train station and not at his employer’s home terminal located in Toronto.

This type of reimbursement is ONLY for employees and is not an option for non-employee travel. Anthony Travel supports Travel OnLion, an online booking tool and provides training, support and guidance for all University employees at all campuses wishing to use the online booking tool. Purchasing Services and Anthony Travel negotiate and administers travel-related contracts for employees’ use. Travelers are able to book online using Travel OnLion, and may contact Anthony Travel for assistance in using the online tool. Under no circumstances is it permitted to entertain U.S. government employees, as such is prohibited by federal law.

In no case may the cost of driving the vehicle from where it
is actually acquired exceed the cost to the U.S. Government had the vehicle
been shipped from the point of origin specified in the travel authorization to
the authorized destination. The authority to travel by privately owned vehicle
(POV) contained in this section is applicable to the employee and/or other
family member(s) authorized to travel. The vehicle to be used must be the
property of the employee or family member prior to the initiation of travel and
must be driven or shipped to the ultimate destination stipulated in the travel
orders. Government
expense are authorized to be driven on a mileage per diem basis under this
provision. To be compliant with these rules, you must collect the necessary records of business expenses from your employees, and properly report these reimbursements on the tax forms.

  • The traveler is required to provide the name and address of the residence in which he or she stayed.
  • This new provision, section 132(f), increased the monthly cap for transit and vanpooling to $60 a month, limited the parking benefit to $155 a month and added an annual index that increased the monthly caps in $5 increments as the cost of living increased.
  • If a car is not needed, then the package price should be compared to the price for individually purchased air and hotel.
  • In the event there is a conflict between a sponsored agreement policy (terms and conditions) and Penn State’s policies, the more restrictive policy applies.
  • The University maintains liability insurance on its vehicles (includes departmental, college, and campus-licensed motor vehicles) as required by the Pennsylvania Financial Responsibility Act.

The use of Travel OnLion for air transportation meets the contractual obligation to provide the traveler with lowest available airfare and is accepted by the governmental audit agency. Therefore, when flights are booked with Travel OnLion, no comparison documentation is required, even if the travel is federally sponsored. In the event a traveler lodges in a private residence in lieu of a commercial establishment, the traveler is eligible for a reimbursement of actual expenses not to exceed $25 per day.

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