Is TSA PreCheck Tax Deductible? What You Need to Know

Frequent travelers often look for ways to streamline airport security, and TSA PreCheck offers a convenient solution. Beyond saving time at checkpoints, many wonder if the application fee can be deducted on their taxes. Given that travel expenses can sometimes qualify as deductions, understanding where TSA PreCheck fits into tax regulations is essential.

IRS Guidelines for Travel-Related Costs

The IRS allows deductions for travel expenses only when they are directly related to conducting business. Personal travel does not qualify. For self-employed individuals and businesses, deductible expenses include airfare, lodging, meals (subject to a 50% limit), and transportation such as rental cars or taxis. These are outlined in IRS Publication 463, which defines what qualifies as an ordinary and necessary business expense.

To be deductible, travel must primarily serve a business purpose, with more than half of the trip’s duration involving work-related activities. If a trip includes both business and personal components, only the business portion is deductible. For example, if a consultant attends a three-day conference and stays two extra days for leisure, only the expenses related to the conference qualify. The IRS also requires that the destination be away from the taxpayer’s primary place of business.

Employers can deduct travel expenses for employees if they are necessary for work and not reimbursed through a per diem or other allowance. However, since the Tax Cuts and Jobs Act of 2017, W-2 employees can no longer deduct unreimbursed travel expenses. This change limits deductions to self-employed individuals and business owners.

Criteria for Claiming the Fee

For TSA PreCheck to be deductible, it must qualify as an ordinary and necessary business expense. If a self-employed individual or business owner frequently travels for work and uses TSA PreCheck to expedite security screening, the cost may be categorized as a business expense under IRS Section 162, which allows deductions for expenses that are common and helpful in a trade or profession.

A key factor is whether the fee is paid personally or by a business. If a company covers the cost for an employee as part of a travel policy, it can be deducted as an employee benefit expense. However, if an individual pays out of pocket, they must prove the expense is directly tied to business activities rather than personal convenience. Unlike airfare or lodging, which are linked to specific trips, TSA PreCheck is a five-year membership, making it harder to attribute solely to business use unless travel is frequent and primarily work-related.

The method of payment also affects eligibility. If the fee is reimbursed by an employer, it is not deductible by the employee. If a business owner pays with a company credit card and records it as a business expense, it may be deductible. However, if paid with personal funds without reimbursement, it generally cannot be claimed.

Record-Keeping Considerations

Proper documentation is required to claim any tax deduction, including TSA PreCheck. The IRS requires taxpayers to substantiate expenses with receipts, bank or credit card statements, and any correspondence related to the application fee. These documents should clearly show the amount paid, the date of the transaction, and the entity that received the payment.

Maintaining a written log of business travel is useful. This can include itineraries, conference registrations, client meeting confirmations, or other records that demonstrate how TSA PreCheck was used for work-related travel. If audited, the IRS may request justification for the deduction, and a detailed travel log helps establish a clear connection between the expense and business activity. Digital tools like expense-tracking software or cloud-based accounting platforms can simplify this process by automatically categorizing and storing relevant transactions.

Ineligible Deduction Scenarios

TSA PreCheck fees are not deductible when air travel is primarily personal. Even if an individual occasionally travels for work, the IRS does not allow deductions for expenses that are mainly for personal convenience. Employees who pay for TSA PreCheck themselves cannot deduct the cost, as it is not directly tied to generating taxable income. Since the Tax Cuts and Jobs Act of 2017, unreimbursed employee business expenses, including those related to travel, are no longer deductible.

Another situation where TSA PreCheck is not deductible is when the fee is covered by a credit card benefit. Many travel-focused credit cards, such as those from Chase, American Express, and Capital One, offer statement credits for TSA PreCheck application fees. Since the taxpayer does not incur an out-of-pocket expense, there is no deductible cost to claim. Attempting to deduct an expense that was reimbursed through a credit card perk could trigger an IRS audit.

Reporting the Fee on Tax Documents

If TSA PreCheck qualifies as a deductible expense, it must be reported correctly on tax filings. The method of reporting depends on whether the taxpayer is self-employed, a business owner, or filing on behalf of a company.

For self-employed individuals or sole proprietors, the fee should be reported on Schedule C (Form 1040) under “Travel” or “Other Expenses,” depending on how the business categorizes such costs. The deduction should be included only if TSA PreCheck is used primarily for business-related travel. If the taxpayer operates as an LLC or S corporation, the expense may be recorded on the business’s financial statements and deducted on the appropriate tax return, such as Form 1120S for S corporations or Form 1065 for partnerships. Businesses that reimburse employees for TSA PreCheck should report the cost as an employee benefit expense, ensuring it is documented in payroll or expense records.