Don't overlook these!
Updated for 2012
If you're an employee, do not report travel expenses or reimbursements on your tax return if all four of the following conditions are met:
If you meet all four of the above conditions and your employer still includes a reimbursement in your income on your Form W-2, have your employer issue you a corrected Form W-2.
An employee's unreimbursed travel expenses may be reported on Form 2106 or 2106-EZ and deducted on Schedule A as a miscellaneous deduction.
Only the amount in excess of 2% of adjusted gross income is deductible.
Since an employee's unreimbursed travel expenses are only deductible to the extent they exceed 2% of adjusted gross income, it may be better for an employee to report business-related expenses under an accountable plan.
Under an accountable plan an employee must substantiate all business-related expenses to his/her employer and does not claim business-related expenses on his/her tax return.
Reimbursements (or cash advances), where any excess cash must be (and is) returned to the employer, are not reported in the employee's Form W-2.
Travel Expenses: What are Commuting Costs?
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