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If you maintain an office in your home, you may be eligible for a tax deduction on your commuting costs.  For most taxpayers, the cost of driving between their home and a regular work location are considered nondeductible commuting expenses.  However, taxpayers who have an office at home can deduct the daily costs of travel between home and another work location in the same business, regardless of distance and regardless of whether the other location is regular or temporary.

This tax deduction is only available to a taxpayer if their home is their principal place of business.  Therefore, the taxpayer must meet the tests for deducting expenses of a home office.

The deduction that is taken for auto expenses must be documented with adequate records, such as a log or diary.  The taxpayer can either use the standard mileage rate or deduct their actual auto expenses.  

If the taxpayer is an employee and their employer reimburses their travel expense, they do not need to report the reimbursements as income on their personal tax return if the reimbursements are made under an Accountable Plan.   The characteristics of an Accountable Plan are as follows: a plan that reimburses only deductible business expense, requires the taxpayer to substantiate their expenses, and requires them to return amounts in excess of their substantiated expenses.  If they plan is not an accountable plan, the reimbursement must be reported as income, and your deductible expenses must be claimed as employee business expenses.

If the taxpayer does not maintain an office in their home, the costs of travel between their home and the first and last business stops of a day are nondeductible commuting expenses.  However, the costs of going between home and a temporary work location are deductible, if the taxpayer has a regular work location away from home.  Employment at a work location is deemed temporary if it is realistically expected to last for no more than a year.