I do travel work and have accrued about $7000.00 just in gas and hotel fees this year. This is my first year traveling. How much of that should I expect back in the form of rebate on my taxes?
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If you have business miles, it’s not just gas receipts, it’s mileage at 58.5 cents per mile for business miles driven, assuming you have the proper records.
What you save in tax for the business travel expenses depends on whether you are an employee or self employed. If you are self employed, the tax savings is the amount of the expenses times your tax bracket, so if you have $8000 in expenses and are in a 15% bracket, you’d save $1200 in tax
If you are an employee, you must itemize to get ANY tax benefit, and even then must first subtract 2% of your AGI from the expenses. So with $8000 unreimbursed employee business expenses, if you make $50K a year and are in a 15% bracket, your tax savings would be $1050 if you itemize anyway