Military Reservists’ Travel Expenses
Armed Forces reservists who travel more than 100 miles away from home and stay overnight as a direct result of their military service can deduct travel expenses as an adjustment to gross income.
Note that this is in lieu of deducting those expenses as a miscellaneous itemized deduction (subject to the 2% of AGI limitation). Thus, this deduction can be taken even if the taxpayer does not itemize their deductions. The TCJA suspended Tier 2 miscellaneous deductions for years 2018 through 2025 but the reservists’ above-the-line travel expenses deduction is not affected.
Limit on Travel Expenses
Unreimbursed expenses for the reservist’s transportation, meals (subject to the 50% limit) and lodging qualify for the above-the-line deduction, but the deduction is limited to the amount the federal government pays its employees for travel expenses, i.e., the general federal government per diem rate for lodging, meals and incidental expenses applicable to the locale and the standard mileage rate for car expenses plus parking and ferry fees and tolls. The 50% meal limitation does not apply to meals provided by restaurants in years 2021 and 2022 (Taxpayer Certainty and Disaster Tax Relief Act of 2020).
Member of Reserve Component
A member of a reserve component of the Armed Forces is an individual who is in the:
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Army, Navy, Marine Corps, Air Force, or Coast Guard Reserve;
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Army National Guard of the United States;
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Air National Guard of the United States; or
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Reserve Corps of the Public Health Service.