If you're planning on deducting cab charges, Uber fare or similar service charges for business expenses, make sure to keep receipts documenting the charges as well as any documentation, such as emails, explaining why the trips were necessary for your business. If you're taking a cab or using a car service to travel to do charitable volunteer work, your expense can be deductible. Generally, you can only take such deductions if the primary purpose of the trip is charitable and there's no significant recreation or vacation element to your trip.
Include the expenses with your charitable deductions, and remember that you can only claim such expenses if you itemize your federal deductions, not if you take the standard deduction. You are allowed to deduct your total medical expenses that exceed 7. You must itemize your deductions to claim this deduction. These can include transportation expenses, including taxi, bus, plane or other means to get to and from your medical appointments. As with other taxi-related expenses, document your expenses and why they were necessary.
The biggest change in the tax year is that employee business expenses not reimbursed by an employer are no longer deductible. In the past, they were deductible when they exceeded 2 percent of the employee's adjusted gross income. Wondering what qualifies as a tax write-off this tax season? Are you a wage earner in Alabama? Interested in learning more about Ohio tax brackets?
Can you claim an energy credit for renovations to your residential home? This link is to make the transition more convenient for you. Transportation costs are also deductible if you are away from home performing duties for the charitable organization. You may even deduct the taxi costs if you pay them indirectly -- the organization pays the fares but you made a donation to the organization to cover the costs. When using a taxi, be sure to ask for a receipt.
Make a note of the date, time and purpose of your use of the taxi and maintain these receipts to support the deductions on your tax return. Diane Stevens' professional experience started in with a computer programming position. Beginning in , running her own business gave her extensive experience in personal and business finance. Her writing appears on Orbitz's Travel Blog and other websites. Make sure that you get a receipt from a cab driver before leaving a cab, because you might need the receipt to document your tax deduction in case of an audit.
In some areas, you can pay cab fare with a credit card, which provides you with an easy way of tracking and documenting your deductible taxi rides. The IRS may also want to see further documentation of the necessity for your cab fare expense, such as the names of the business associates you met with after taking a taxi to their location.
Lainie Petersen writes about business, real estate and personal finance, drawing on 25 years experience in publishing and education. She holds a master's degree in library science from Dominican University.
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