Can Travel Bloggers Deduct Travel Expenses?

Travel blogging has emerged as a viable income-generating activity. For those who operate their travel blog as a legitimate business, the Internal Revenue Service (IRS) permits the deduction of ordinary and necessary business expenses. These are costs directly related to operating and promoting the travel blog that may reduce taxable income. The ability to deduct these expenses hinges on the activity being classified as a business rather than a hobby.

Establishing Your Travel Blog as a Business

The IRS distinguishes between a business and a hobby primarily based on whether the activity is conducted with a genuine intention of making a profit. If an activity is deemed a hobby, expenses can generally only be deducted up to the amount of income generated by that activity, and losses cannot offset other income. To determine if a travel blog operates as a business, the IRS considers several factors, and no single factor is decisive.

One important factor is whether the activity is carried out in a businesslike manner, which includes maintaining complete and accurate financial records and separate bank accounts for the business. The time and effort dedicated to the travel blog also indicate a profit motive; significant personal time and effort suggest a business intent. An expectation of making a profit supports business classification.

Dependence on the income from the travel blog for livelihood also points towards a business. While travel blogging inherently involves elements of personal pleasure, the IRS examines whether personal motives outweigh the profit motive. If losses occur, the IRS considers whether they are due to circumstances beyond the taxpayer’s control or are normal for the startup phase of such a business.

Categories of Deductible Travel Expenses

When a travel blog is established as a legitimate business, a range of travel expenses incurred while away from one’s tax home can be considered deductible. Deductible transportation costs include airfare, train tickets, bus fares, car rentals, and the use of a personal vehicle, for which the standard mileage rate for 2024 is 67 cents per mile.

Lodging expenses, such as hotel stays or Airbnb accommodations, are also deductible. Meals incurred while traveling for business are generally 50% deductible, provided they are not considered lavish or extravagant.

Other common deductible travel expenses include baggage fees, tips paid for services related to business travel, and fees for attending conferences or events directly related to the travel blogging business. Expenses like dry cleaning, laundry, and business calls made during a trip are also typically deductible. These deductions apply only if the travel requires being away from the general area of the tax home for a period substantially longer than an ordinary day’s work, necessitating sleep or rest.

Required Documentation for Travel Expense Deductions

Meticulous record-keeping is paramount for substantiating travel expense deductions for a travel blog. The IRS requires taxpayers to maintain adequate records to prove the amount, time, place, and business purpose of each expense. This documentation helps ensure compliance and can be crucial during an audit.

For every expense, it is necessary to keep receipts, invoices, or other proof of payment, such as bank or credit card statements. A comprehensive travel log should detail the dates of departure and return, the destination, and the specific business reason for the travel.

Supporting documents like itineraries, conference schedules, or calendar entries can further corroborate the business nature of the trip and specific activities undertaken. Organizing these records, whether through digital apps, spreadsheets, or physical folders, facilitates easy retrieval and substantiation.

Handling Personal and Business Travel

Travel bloggers often undertake trips that blend business activities with personal leisure, requiring careful allocation of expenses. For a trip to be considered primarily for business, the main purpose must be business-related, not personal. If the trip is primarily personal, only the expenses directly attributable to specific business activities are deductible.

For domestic travel, if the trip’s primary purpose is business, the cost of getting to and from the destination is fully deductible. However, if the trip is primarily personal, the transportation costs are not deductible, though expenses incurred for business activities at the destination may be. The amount of time spent on business versus personal activities is a significant factor in determining the primary purpose.

Special rules apply to foreign travel. If a trip outside the United States lasts longer than one week and less than 75% of the time is spent on business, expenses must be allocated between business and personal portions. The expenses for accompanying family members are generally not deductible unless they have a bona fide business purpose and the expenses would otherwise be deductible by them.

Reporting Travel Expenses on Your Tax Return

For self-employed travel bloggers, deductible travel expenses are typically reported on Schedule C, “Profit or Loss From Business (Sole Proprietorship),” which is filed with Form 1040. This form is used to calculate the net profit or loss from the business activity.

Specific categories for travel expenses are available on Schedule C. The net profit or loss calculated on Schedule C directly impacts the taxpayer’s adjusted gross income and is also subject to self-employment tax.