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Playbook: deducting non-reimbursed business travel: even though your employer might not cover business expenses, you can save money by deducting them on your tax return

Rob Batarla

As we approach the end of the tax year, now is the time to make sure that you have your business travel receipts. If your employer does not pay for your business travel (like) your recent trip to NRPA's Congress in San Antonio) and vou have to pay them out of your own pocket, you may be able to deduct some of those expenses on your personal tax return. Below is a list of what expenses are deductible and to what extent:

* Transportation expenses--100 percent deductible, assuming you traveled within North America. Transportation expenses include air fares, mileage, reasonable taxi and shuttle expenses, and so forth for travel from your regular place of business to a convention or meeting.

* Lodging Expenses--100 percent deductible.

* Registration Fees--100 percent deductible, assuming the convention is for education that maintains or improves the skills related to your trade. Education required to practice your trade or which qualifies you for a new trade is not deductible.

* Meals and Entertainment--50 percent deductible, if it is a reasonable and necessary business expense.

* Spouse Travel--Not deductible, unless your spouse works for you, the travel is for a bona fide business purpose, and such expenses are independently deductible by your spouse.

If your convention expenses are deemed to be deductible, they are considered "miscellaneous itemized deductions" and go on Line 20 of your Schedule A--Itemized Deductions. Note that you are only able to deduct miscellaneous expenses that are greater than two percent of your gross income.

Always keep all receipts and documentation for evidence. In fact, making an expense report just like the one you would turn into an employer would be a great way to keep your records straight. However, tax law can be tricky, so for additional guidance, contact the IRS or your local tax professional.

Rob Batarla is NRPA's director of finance. He has more than eight years of accounting and finance experience, is a certified public accountant, and just recently earned his MBA. He can be reached at (703) 858-0784 or by email at rbatarla@nrpa.org.

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