If you are a travel blogger, you must acquaint yourself with the travel bloggers write-off. This becomes very important when you are thinking of a taking a trip, which is a requirement for your blogging profession so that you can file your taxes accordingly. To execute the planned trip, you need to have a budget estimate to make sure you do not exceed your financial limits for the trip. As far as expenses are concerned, you need to understand the basic differences between necessary expenses and ordinary expenses.
How to claim taxes for professional travel
Professional travel expenses are claimed by an employee after a business-related travel trip, and it is associated only with the business. There are limits to every business expense. You are eligible to claim your travel expense only when you are away from your ‘home,’ i.e., the location of your workplace or business office is located in any other city where you are not living with your family. Your workspace, office, or multiple stores are tax home for you. You need to understand the basis of a tax deduction if you are a professional blogger. In this case, you are eligible for travel bloggers’ write-off. But remember that you can only be eligible for claiming your tax deduction if you are traveling in a first-class or staying in a premium hotel. Your travel can include any conference (online seminars and webinars will not be considered), on sight/field meetings, and official visits to the client’s office will be considered as a business trip.
You are desperate to look forward to ways from which you can save or deduct your tax, especially when you are a self-employed travel blogger. You have a vast window to check from where you can deduct your expenses while you are on your business trip, which includes travel, meals, and official stay. This business visit will be only done by self, and family is not to be brought along; otherwise, the tax deduction and other claims will not be cleared because family is not a part of business and official travel plans. If you bring the family along (wife and kids), then it will be considered a personal trip. The expenses of the entire trip will be paid for by you, and it will not be considered a business trip. No tax deduction will be cleared.
Use this widget to calculate quarterly tax:
Sources from which expenses can be deducted
Travel bloggers’ write-off is eligible on the following sources:
Travel: Traveling from one place to another by any kind of transportation is a travel cost expense deduction. Train, bus, flight, car, and taxi are examples of the mode of transport where you can deduct the expenses. In case you are traveling in your car for a trip required for your blogging, the first thing that you should keep in mind is that you should calculate the miles and gas consumed as a written invoice with details like; date, distance in KM, maintenance if any also toll, parking, and, fuel consumption should be mentioned in an invoice or bill so that it can be claimed.
Taxi and Cab services: The expenses to and fro required for creating a travel blog is accountable for a tax deduction.
Hotel Stay: When you go out for a trip required for blogging, it is obvious that you will stay in a hotel; this stay will be charged according to the norms of the location. The stay expenses are tax-deductible. This will include the tips paid to the staff for the room services. Bill is the most important tool to file for a tax deduction. Besides the basic and necessary expenses, if you have availed of other services like gym, spa, movie, shopping, salon, etc., these are not deductible. These expenses are called personal expenses. Facilities for personal pleasure cannot be considered tax-deductible.
Laundry Services in Hotel: When you stay in a hotel, you will avail yourself of the dry-cleaning services and laundry services because you are on a professional visit. The hotel provides a laundry service that is chargeable according to the number of clothes you give for laundry. The rate per unit for laundry is mentioned on the laundry and dry-cleaning service card in the room where you are staying. You need to pay the bill amount for the laundry or dry-cleaning service that you have availed yourself. All the expenses should be billed so that they can be easily documented for tax reduction benefits.
Meals During official visits: When you go out on a trip for creating a travel blog, you are eligible for a write-off for the meals that you have during your trip. These days as the new rules have been implemented, the meal that you have during this trip is 100% tax-deductible.
Telecom expense: Communication is the most important feature in any field. When you are out of the home, you need to communicate with people around you. Call bills and internet bills can be logged for tax deductions.
Claim your Tax deductions
When you are visiting a place for creating a travel blog, it should be at least 100 miles away from your tax home. During the trip, you are supposed to stay at a place that is not your home or your relative’s place. The trip should be for less than half a year. If you stay longer than the trip would not be considered as an official trip, and no benefits of tax deduction will be given. Official travel should be planned alone without family for a short time, maybe a few days or weeks. Communication should be handled carefully. Call details can say everything, so you must be careful with long-hour calls.
If you are an entrepreneur or self-employed, you can claim your tax deduction through Form C. The freelancers can have the benefit by claiming the travel expense deductions. This can reduce your tax burden.