One common tax myth is the belief that you can deduct commuting costs. This misconception can lead to incorrect deductions and potential issues with the IRS. Here's what you need to know to stay compliant and avoid these pitfalls.

Origin of the Myth

• Expense Confusion: Many people assume that any travel related to work should be deductible.

• Lack of Awareness: There is often confusion about the specific rules governing the deductibility of travel expenses.

Reality of Deducting Commuting Costs

• Personal Expenses: The IRS generally considers the cost of commuting from your home to your regular place of work to be personal and non-deductible.

• Business Travel: Travel between different work locations, or for temporary work assignments, may be deductible under specific conditions.

IRS Guidelines on Commuting Costs

• Non-Deductible Commuting: Costs for daily travel between your home and your regular workplace are not deductible.

• Deductible Business Travel:

• Temporary Work Locations: Travel to a temporary work location (one where you work for less than one year) may be deductible.

• Multiple Workplaces: If you travel between multiple workplaces in the same day, those travel expenses may be deductible.

• Home Office Exception: If you have a qualifying home office that you use as your principal place of business, travel from your home office to other work locations may be deductible.

Why the Myth Persists

• General Misconceptions: Many taxpayers believe that all work-related travel should be deductible.

• Anecdotal Advice: Misleading information and anecdotal advice from non-professional sources perpetuate the myth.

Avoiding the Pitfall

• Understand the Rules: Clearly understand the IRS rules for deducting commuting and travel expenses.

• Non-Deductible: Commuting costs between home and regular place of work.

• Deductible: Travel to temporary work locations, between multiple workplaces, or from a qualifying home office.

What You Need to Do

• Accurate Reporting: Ensure that you do not attempt to deduct non-deductible commuting expenses on your federal tax return.

• Document Business Travel: Keep detailed records of travel expenses that qualify as deductible business travel, including dates, destinations, and purposes.

Consulting a Tax Professional

• Seek Professional Advice: Consulting a tax professional can ensure you correctly identify and claim eligible travel expense deductions.

• Accurate Records: A professional can help you maintain proper documentation and navigate the complexities of deducting travel expenses.