How to Claim Transit Tax Breaks
- 1). Deduct business travel expenses if you are an employee. Complete IRS form 2106 or 2106 EZ to record business travel expenses that were not reimbursed by your employer. Deduct airplane, train, bus, car, taxi and other transit fares that either take you to your destination or allow you to travel between business duties when traveling. For example, if you fly to Atlanta but take a taxi between appointments, you can deduct both fares. Also deduct expenses for meals, business calls, dry cleaning, tips and other business-related fees, such as renting an Internet terminal. You can only claim these deductions if you itemize.
- 2). Claim self-employment transit deductions by filling out IRS Form 1040, Schedule C; IRS Form 1040, Schedule C-EZ; or IRS 1040 Schedule F, for farmers. Deduct the same travel expenses mentioned in Step 1 if you incurred them while running a business you own. Also deduct the cost of using a car for your business. If you use your personal car for business, deduct only the costs associated with using the car for business. Review IRS Publication 463 for more information on car-related transit deductions.
- 3). Use IRS form 2106 or 2106-EZ to claim a military reservist transit deduction without itemizing deductions. Deduct "ordinary and necessary" costs of travel at least 100 miles from your home that requires an overnight stay and is mandated by the military. Claim only unreimbursed costs. Transfer the information from this form to your IRS Form 1040.
- 4). Claim tax breaks for your transportation to and while doing volunteer work. Deduct expenses for gas and oil, taxi fares or other public transportation fees incurred when traveling to a location where you will volunteer, but do not deduct costs for maintenance or upkeep. Also deduct expenses for driving or taking public transportation that is required when you volunteer. For example, deduct subway fair for taking a meal to an elderly couple if you are working with a charity that delivers meals to the homebound. Claim this deduction on your IRS Form 1040, Schedule A.
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