Discover the basics of how the IRS treats expenses related to international business travel. Work travel outside of the United States presents unique challenges for taxpayers.

CAUTION: Tier 2 miscellaneous itemized deductions are suspended by the TCJA for 2018 through 2025, so employees with unreimbursed foreign travel expenses get no deduction for these expenses. These employees should consider negotiating with their employers to be covered by an accountable plan that would provide tax-free reimbursement to them for their employee business expenses.

“In the case of any individual who travels outside the United States away from home in pursuit of a trade or business or in pursuit of an activity described in Section 212, no deduction shall be allowed under §162 or §212 for that portion of the expenses of such travel otherwise allowable under such section which, under regulations prescribed by the Secretary, is not allocable to such trade or business or to such activity.” (IRC Sec 274)