international trip tax

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Planning an International Trip? New Tourist Restrictions and Taxes Mean More Advance Planning

More destinations are implementing visitor-control measures in an effort to balance tourism with protection of cultural and historical sites.

Sheryl Jean,

When Linda Kuhlmann of Washington state visited Germany and Hungary last year, she found the Christmas markets so packed that she could barely move.

“They weren’t limiting the crowds,” says the 73-year-old, who has visited more than 70 countries, “but I almost wish they would have.”

That may change. While tourism-control measures — from Amsterdam to Zambia — aren’t new, they’re increasing as places become overrun by visitors .

More cities and countries are implementing tourist taxes, capping the number of visitors at popular sites, limiting cruise ship stops and even charging fines for bad behavior to help offset negative effects of so-called “overtourism,” enhance residents’ quality of life and protect cultural and historic landmarks.

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Such measures, however, also raise the cost of travel for tourists and require planning further ahead with no guarantee they’ll be able to visit everything on their wish list. But some travelers also see the need.

Susan Black of Woodcliff Lake, New Jersey, thinks capacity controls in many places make sense to protect sites “as long as it’s not fleecing travelers.”

“If these places don’t have the infrastructure to handle the influx for popular sites, it puts too much pressure on local communities and travelers,” says Black, 66, who has visited more than 30 countries. “Who wants to wait in a five-hour line?”

Here are some new tourism measures for 2024 and beyond:

The Netherlands

In January, Amsterdam increased its tourism tax, the highest in Europe. The per-night tax, which went from 7 percent to 12.5 percent, applies to any overnight stay. The tax on a €175 ($189) room, for example, is €21.90 ($23.60). Cruise-ship passengers must pay €11 ($11.86) per person per day.

In January, Iceland resumed charging an accommodation tax, which was suspended during the pandemic, and extended it to cruise ships. The tax, which aims to generate funds for sustainability efforts and protect its unspoiled scenery, ranges from about $2 per overnight stay to slightly over $7, depending on the lodging.

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Since Feb. 14, each foreign visitor to the idyllic island of Bali must pay a new tourist tax of about $10. The tax can be paid upon arrival, but the Bali government recommends paying it beforehand on its tourism website.​

In April, Greece is scheduled to launch a booking system to further limit the number of daily visitors to Athens’ Acropolis (from up to 23,000 now to 20,000) and other archaeological sites to tackle overcrowding and protect its most famous landmarks.

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In January, Greece replaced its bed tax with a “climate resilience levy” to fund reconstruction after forest fires and flooding. Visitors pay the per-night tax, ranging from €1 to €10 ($1.08 to $10.77), at their lodging upon arrival during peak season, from March to October.

Starting in April, the city of Venice, which struggles with some of the world’s worst overtourism, will charge day-trippers an entry fee of €5 ($5.40) on 29 dates through July during the 8:30 a.m. to 4 p.m. peak hours. Visitors can pre-pay on a new website to get a QR code. Visitors staying in overnight lodgings are exempt but still must register. In June, Venice will limit the number of people in organized tour groups to 25.

Both measures aim to help regulate crowds and protect the fragile lagoon environment.

Barcelona is adding a city tourist surcharge on top of an existing regional tax. On April 1, under the city’s second phase of an increase, the fee will rise to €3.25 ($3.50). Visitors will pay up to €6.75 (about $7.30) in combined per-night taxes up to a maximum of seven nights, depending on the lodging type.

Valencia, which is about 220 miles south of Barcelona, plans to introduce a tourist accommodation tax later this year. It will range from about 50 cents to slightly more than $2 per night up to seven nights.

More changes are in store beyond this year.

In 2025, Denmark plans to impose a tax — it will average 100 Danish kroner ($14.37) — on air passengers to help fund its airline industry's shift to greener practices. Transit flights stopping over at a Danish airport will be exempt.

Also in 2025, the European Union plans to require travelers from about 60 countries, including the United States, to apply for travel authorization , which will cost €7 ($7.55). Adults age 70-plus don’t have to pay.

Such measures haven’t stalled global travel, which are expected to return to prepandemic levels this year. The U.N. World Tourism Organization has predicted the number of international tourists will reach 1.8 billion by 2030, up from 25 million in 1950.

“There’s no evidence that a tax situation is making tourists unhappy,” says Megan Epler Wood, managing director of Cornell University’s Sustainable Tourism Asset Management Program. “I think they’re most concerned about crowding and delays in traffic,” which can “ruin someone’s vacation.”

Wood thinks travelers will see more tourist control measures, especially since many cities are using tourism tax revenue to fund infrastructure like roads, improve neighborhoods and protect their environment and landmarks. Some of those efforts also will elevate travelers’ experience.

How to bypass the crowds

Some travelers are responding by changing how they travel. Here are some tips to avoid crowds.

Plan ahead: Planning way ahead is necessary as many attractions are issuing a limited number of timed tickets that must be reserved in advance. “You have to learn to play the game,” says Kuhlmann, who with husband, Jim, wants to visit the Anne Frank House on a visit to Amsterdam in July. “We can only get tickets six weeks ahead of time. I will set my alarm at 1 a.m. to get up … because they release them at 10 a.m. Central European time.”

Change visiting hours: Consider visiting sites in the early morning or late afternoon. Visit Iceland provides an online planning tool to help visitors avoid crowds at certain sites. It shows that 3 p.m. is the busiest time at Reynisfjara, a famous black sand beach.

Avoid peak seasons: Avoid traveling during the peak times of July, August and around Christmas.

Find lesser-known destinations : A 2022 survey by travel site Booking.com found that 61 percent of travelers are willing to skip popular tourist destinations or attractions to disperse the impact of their visit.

Instead of the Greek island of Santorini, consider the nearby islands of Naxos or Paros, which remain undiscovered by cruise ships, suggests Dimitris Tzimos, co-owner of Asimina Tours in White Plains, Maryland.

Still, “when you have someone arriving at a destination for the first time, it’s not easy to bypass these brand names,” he says. “It’s a once in a lifetime trip – say, to Santorini. How can you resist?”

Sheryl Jean is a contributing writer who covers aging, business, technology, travel, health and human-interest stories. A former reporter for several daily metropolitan newspapers, her work also has appeared in the  Chicago Tribune  and  The Dallas Morning News  and on the American Heart Association’s website.

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• U.S. Government-Imposed Taxes on Air Transportation

Along with traditional income and payroll taxes, airlines and their customers (passengers and shippers) pay many special taxes and fees to a variety of authorities, both at home and abroad. Among the stated purposes of these taxes and fees are homeland (national) security, environmental protection, agriculture inspection, infrastructure enhancement, airport and airway operations and maintenance, and agency financing. U.S. and foreign taxes have grown in number, amount, and scope since the advent of air transport. The amount a passenger pays in taxes and fees on a ticket varies according to his itinerary, including the number of times he or she boards a new flight and at what airports. In addition to the special taxes and fees captured in the table below, the Federal Aviation Administration also charges overflight fees to operators of aircraft that fly in U.S.-controlled airspace, but neither take off nor land in the United States.

• Both (a) and (b) apply to domestic transport or to journeys to Canada or Mexico within 225 miles of the U.S. border; (a) is prorated on journeys between the mainland United States and Alaska/Hawaii
• Applies to the sale (to third parties) of the right to award frequent flyer miles
• Does not apply to those transiting the United States between two foreign points; $11.10 on flights between the mainland United States and Alaska/Hawaii
• Applies only to flights within the 50 states but is prorated on transportation of cargo between the mainland United States and Alaska/Hawaii
• Congress created the Leaking Underground Storage Tank (LUST) Trust Fund in 1986 to 1) provide money for overseeing and enforcing corrective action taken by a responsible party, who is the owner or operator of the leaking UST and 2) provide money for cleanups at UST sites where the owner or operator is unknown, unwilling, or unable to respond, or which require emergency action
• Funds TSA at $5.60 per one-way up to $11.20 per round trip (was $2.50 per enplanement up to $5.00 per one-way trip from 2/1/02 through 7/20/14); suspended 6/1/03-9/30/03
• Since 5/13/91 (passenger fee) and 2/9/92 (aircraft fee), funds agricultural quarantine and inspection services conducted by CBP per 7 CFR 354; APHIS continues to perform certain Agricultural Quarantine Inspection-related functions that are funded by user fee collections
• Since 7/7/86, funds inspections by U.S. Customs and Border Protection; passengers arriving from U.S. territories and possessions are exempt
• Since 12/1/86, funds inspections by U.S. Immigration and Customs Enforcement

The following table illustrates the application of government-imposed taxes/fees on a hypothetical domestic itinerary. Taxes/fees shown do not include those levied directly on the airline (e.g., income, property, franchise, sales/use, payroll, fuel).

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Can You Deduct Your Vacation From Your Taxes? Experts Weigh In

Know what’s deductible and what’s not when it comes to submitting travel expenses on your taxes..

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If there’s a certain amount of work involved, you may be able to claim travel costs on your taxes.

Photo by GaudiLab/Shutterstock

People are traveling like crazy these days. The Sunday after Thanksgiving 2023 was the biggest single travel day in U.S. aviation history, with TSA screening more than 2.9 million passengers on November 26.

If you’re one of those travelers racking up frequent flier miles as quickly as you can fasten your seat belt, you may be looking for ways to recoup some of the cost. Can you legally write off your trip? If you’re self-employed (for example, if you’re an entrepreneur, freelancer, or consultant, or have an online business) and you did some work while on the road, there’s a good chance you can.

Here’s what it takes to get two thumbs up from the IRS.

Pass these four tests

For starters, your trip must have a business purpose, meaning it must include activities such as client meetings, attending a conference, being a guest speaker at a conference, doing research and development for the business, or holding a board meeting or annual shareholders’ meeting. The activity should have the potential to generate revenue.

“Don’t think you can take a personal trip, talk business for an hour and then try and deduct the whole amount of your trip. The intent of the trip needs to be business,” says Caitlynn Eldridge, founder and CEO of Eldridge CPA .

The second and third requirements deem that the trip must be both “ordinary and necessary,” according to IRS guidelines on business travel expenses . “An ordinary expense means it’s typical in your business, both [in terms of] amount [as well as in] frequency and purpose. Necessary means it actually helps you increase your profits or expand your business,” explains Tom Wheelwright, a certified public accountant and author of the book Tax-Free Wealth (BZK Press, 2018).

Lastly, every expense must be properly documented. To get a deduction for travel, Wheelwright said that you must spend more than half your time during the business day doing business and have everything documented. “So, if you spend four and a half hours a day doing business, it becomes deductible. You also must have documentation, which includes receipts, of what you did, and a log of your expenses,” says Wheelwright.

On receipts, write the name of the client who you had the meal with for further proof. “Save the emailed confirmation and receipt from the hotel reservation or conference ticket payment that show the dates, times, and name of the events as well as the receipts from the travel it took to get there and back [such as for gas or flights],” says Ben Watson, founder of Fiscal Fluency , a personal finance and business coaching company.

Note that for 2024, the IRS mileage reimbursement rate is 67 cents for employees or a self-employed individual traveling for work, up from 65.5 cents in 2023.

Know, too, that you must be away from home overnight—the IRS requires an overnight stay for the trip to qualify as business travel, Wheelwright says.

Domestic travel versus travel abroad

There’s a big difference between how you calculate deductions if the work trip was taken in the United States versus abroad. According to Wheelwright, “It’s an all-or-nothing test in the U.S., so either you spent more than 50 percent of your time on business, and it’s all deductible, or you spent 50 percent or less and none of it’s deductible.”

For international business travel, the deductions work differently. He explained that when you travel to another country, the deduction is proportionate. “For example, if you spent 40 percent of your time doing business in Italy, then 40 percent is deductible,” says Wheelwright.

Stick to the rules

If you normally stay in more modest hotels, trying to deduct a luxe property stay could raise red flags.

Photo by Yokwar/Shutterstock

It has to be a legitimate business trip. “You can’t simply do some work while on the beach and call it a business trip,” says Watson. But if you make it a “bleisure trip” by adding a couple days at the beach onto your preplanned business trip to the coast, you could still write off at least some of your lodging fees, he explained. If you do extend your trip for vacation, you can only deduct the expenses that were directly related to work and took place on the days that you conducted business. If you are traveling to multiple cities, keep in mind that each must have a business purpose.

You do have to work. If you are at a conference, make sure you fully participate, which means not just attending one or two sessions. If you only attend a small number of the business-related events, the entire purpose of the trip would be considered a personal trip with “incidental” business activities, Watson points out. Remember you need a log of what you did, and if it’s thin on details, it could prove problematic. “You don’t want to lose the ability to deduct transportation, lodging, meals, and other expenses,” says Watson.

If it’s a business trip of your own making, be sure it includes meetings with clients or participating in some work-related activity. “To demonstrate evidence of these events, it’s wise to put calendar appointments down in your phone in advance and hold onto receipts when the time comes to file your tax return and claim your deductions. Remember, the primary purpose of this trip is [supposed to be] for work,” says Riley Adams, a CPA and CEO and founder of WealthUp , a financial literacy website.

Don’t try to bend what “ordinary and necessary” means. “If you have the ability to accomplish the same business tasks while staying at a modest hotel as you would at the Four Seasons, you’ll have a hard time justifying the extra cost if you’re ever audited,” Watson cautions.

Stay at a place that is similar to places you normally stay on a business trip, so your expenses are considered “ordinary.” Wheelwright explains that if you usually stay at five-star hotels for your business trips, then the Four Seasons would fall into the same category. However, if you usually stay at hotels like the Comfort Inn, and suddenly switch to a luxury hotel, the high-end venue could raise red flags with the IRS. He says that it doesn’t matter whether you stay at a hotel or a vacation rental, the quality level and price tag should be similar to what is typical for your business trips.

When traveling with non–business companions, such as a spouse or family members, you may only deduct the cost of the lodging you would have paid if you were traveling alone—for example, if a single room costs $150 per night, and you paid $200 for a double room, you could only deduct at the $150 rate.

What can you deduct?

You can deduct 50 percent of the cost of business meals.

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Personal meals are not deductible, but half the cost of food expenses related to business can be deducted. Expenses for your family’s meals and entertainment cannot be deducted unless they are actively engaged in the business and you can show that their expense is both ordinary and necessary.

Travel expenses are only deductible on the days in which the work-related event occurs. “For example, a taxi ride to the meeting, train to a conference, or plane ride to the event [are deductible],” says Adams. “Lodging, much like travel expenses, is deductible on the days in which business is set to occur.”

Understand too, that if you’re provided with a plane ticket paid for by your company, or you’re riding free because you’re redeeming frequent flier miles, your cost is zero, so you can’t deduct it.

But there are a couple of things you may not be aware of. For example, if you have to ship your baggage, you can deduct that cost; you also can deduct for tips for services, such as a tip to the waiter during a meal with a client.

Be strategic

It’s best to put your “vacation” days in the middle of the business days, advises CPA Greg O’Brien. “For example, if [a] business owner took a seven-day trip to Florida and spent five days meeting with clients or prospects and two days relaxing on the beach, this would still qualify as a deductible business trip. The trick is to stick the ‘vacation’ days in the middle of the business days,” he says.

By placing the vacation days in the middle, the travel days to and from are still considered business related, rather than personal.

Watson offers another tip: “Laundry, dry-cleaning and shoe-shine expenses are perfectly acceptable expenses if incurred shortly after returning home.”

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• International Business Travel Tax Deductions

Tax laws provide numerous deductions for business travel, including travel outside the U.S. To qualify for a deduction, expenses must be ordinary and necessary. This means that they are commonly accepted in your type of business, and they are helpful and appropriate for your job. They do not need to be absolutely essential. The expenses also must have been incurred for travel away from home, which is obvious for international trips. (Generally, this requirement means that you must stay outside the area of your normal tax home for much longer than an ordinary day’s work, such that you need to rest to handle your job duties while you are away from home.)

You can claim a deduction for expenses related to business travel only if it is temporary. The tax laws classify a period of working away from home in a single location as a non-deductible indefinite assignment if it lasts for over a year. An indefinite assignment also may arise if you spend many short periods that combine to comprise a long period in the same location.

Common Types of Deductible Business Travel Costs

Some examples of costs that you normally can deduct for business travel, whether domestic or international, include shipping and luggage costs, communications costs, laundry bills, and lodging. You can deduct the full cost of your lodging, regardless of how expensive it is. You also can deduct up to half the cost of any meals while you are traveling for business if they are not lavish or extravagant. You do not need to show that the meal was related to business.

• Half the cost of meals
• Transportation
• Shipping and luggage
• Communications

Transportation costs are also deductible in most cases. These include the costs of getting to the destination for your business trip, as well as costs for transportation while you are there. For example, you can deduct the cost of a plane ticket to another city and the cost of taking a taxi from the airport to your hotel or business site once you arrive. You also can deduct the cost of a car rental or any costs related to using your own car on the trip. In the unlikely event that you take a cruise ship or another form of luxury water travel to your destination, you will want to explore the special rules in these situations.

Transportation for International Business Travel

If you are traveling to a foreign country for business, you can deduct the full cost of your transportation to and from the country if your trip was entirely for business purposes. This means that you spent all of your waking hours during the trip handling matters related to your job. You also can deduct the full cost of your transportation to and from a foreign country if your trip is considered entirely for business purposes. This can be more complex.

An international trip will be considered entirely for business purposes if you do not spend more than one week outside the U.S., you spend at least 76 percent of your time on work-related activities, you did not have substantial control in planning the trip, or you can show that a personal vacation was not a major consideration in taking the trip. To qualify under the one-week rule, you must count the day on which you returned to the U.S. as part of the week, but you will not count the day on which you left the U.S. To qualify under the 76 percent rule, you must count both the day on which you left the U.S. and the day on which you returned to the U.S. To qualify under the substantial control rule, you cannot be related to your employer.

Some business expenses may still be deductible even if a trip is not taken entirely for business purposes.

Even if your trip does not fit into one of these categories, you may be able to take a limited deduction if you took the trip primarily for business purposes. (If your trip was primarily for personal purposes, you cannot take any deduction.) You will need to determine which days of the trip counted as business days and divide that number by the total number of days that the trip lasted. This will give you the percentage of the trip costs that you can deduct. A business day is defined as a day on which you needed to be present in the foreign country for business reasons, or a day on which you were principally engaged in business activity during working hours. If business days fall on either side of a weekend or holiday, those days can count as business days. Days in transit also count as business days.

Last reviewed October 2023

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Understanding the Hidden Taxes and Fees Associated with Airline Travel

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Written by TurboTaxBlogTeam

• Published Jul 26, 2023 - [Updated Sep 25, 2023]

Hopping on a flight can be an exciting and convenient way to reach your destination, but it’s imperative to be aware of the hidden taxes and fees that can add up quickly when you book your next trip. 

Before you ready yourself for the next take-off and landing, let’s define and shed light on these rates and charges that will be applied to your tickets the next time you get ready to head to the airport. Airlines might impose different types of fees and taxes for domestic and international travel. These fees can include both government-imposed fees as well as fees imposed by airline companies, including the Passenger Facility Charge (PFC), the Federal Excise Tax, the International Arrival and Departure Tax, and additional payments (from food costs to checked baggage). Let’s learn more about them:

Government Taxes and Fees: There is a September 11 Security Fee (also known as U.S. Passenger Civil Aviation Security Fee) assessed by the U.S. government to help cover security costs. This fee is $5.60 per one-way trip when boarding in the U.S. It is possible that you could have multiple September 11 fees for trips that have multiple stopovers. 

Passenger Facility Charge (PFC): This program allows fees up to $4.50 for every eligible passenger at commercial airports controlled by public agencies. These PFCs are capped at two charges on a one-way trip or 4 charges on a round trip for a maximum total of $18. These fees are used by airports for things such as enhancing safety, security, capacity, noise reduction, or to increase air carrier competition. 

The Federal Excise Tax: Federal excise tax is typically imposed on the sale of things like fuel, airline tickets, heavy trucks and highway tractors, indoor tanning, tires, tobacco, and other goods and services. This 7.5% tax on profits is often hidden from the customer as it is typically part of the domestic airfare. 

The International Arrival and Departure Tax: These taxes are applied to all flights arriving in or departing from the United States, Puerto Rico, or the US Virgin Islands, and the total may vary based upon currency exchange rates at the time of purchase. 

Airline Fees : Checked baggage fees, seat selection fees (gone are the day when you can just have an aisle or window!), and change fees, to name a few, could pop up on your final receipt. You can avoid or minimize these sneaky and additional fees if you pack light and don’t exceed the weight limit for a carry-on (sometimes a tricky task!), or choose an airline with more flexible change policies. 

Ancillary Fees : In-flight meals, WiFi, and additional entertainment could be considered ancillary fees. A few ways to lower costs: bring your food onboard (snacks included!) or download any entertainment beforehand so you don’t need to take out your wallet during your next flight. 

Hidden Booking Charges : When booking your flight, you may incur additional fees from online travel agencies or third-party booking platforms (like Expedia, Travelocity, Orbitz, Kayak, and Hotels.com) . These fees can include service charges, convenience fees, or booking fees. To avoid these extra costs, consider booking directly through the airline’s official website or contacting customer service for assistance.

But there is good news: Airline Loyalty Programs can help offset some of the hidden taxes and fees. Earning and redeeming miles can lead to discounted fees or even free flights. 

If you understand each component of your ticket, you can avoid unnecessary expenses and make better decisions when booking your flights. Remember to research the airline’s specific policies and ensure your bag is the appropriate size and weight; these two easy tips could minimize the impact of these hidden costs. Bon voyage!

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12 responses to “Understanding the Hidden Taxes and Fees Associated with Airline Travel”

I��m not sure where you are getting your information, but good topic. I must spend some time learning much more or working out more. Thank you for fantastic information I used to be on the lookout for this information for my mission.

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There are a lot of necessaries in life. Food is necessary. Shelter is necessary. When you spend a Lot of Money on things you want, it is a personal choice. When you have to spend a Lot of Money on what is necessary it can be quite frustrating! Travel and Airfare is a necessary part of life for a lot of people. Getting Cheaper Airfare can make this necessary part of life less frustrating.

How can you miss the increase in airline travel fees? How does it help us to see this breakdown on where the funds supposedly go? Basically, they come out of our pockets.

Nice little interactive graphic. Applause to designer.

Very nice post. I just stumbled upon your blog and wished to say that I have truly enjoyed surfing around your blog posts. In any case I’ll be subscribing to your rss feed and I hope you write again very soon!

What’s Happening i’m new to this, I stumbled upon this I have found It absolutely useful and it has helped me out loads. I am hoping to contribute & help different customers like its helped me. Good job.

Were you a skilled reporter? You write quite well.

You sound like a perfectionist. Great weblog and fantastic writing abilities.

I believe this is among the most significant information for me. And i am happy reading your article. But should statement on some common issues, The web site style is wonderful, the articles is truly excellent : D. Just right job, cheers

Hi Jadan, We are glad that you found this post useful. Continue to check for more interesting topics.

Thank you, Lisa Lewis

A million drevirs are exploiting loophole in road tax payments. Jan 22, 2008 . If drevirs skip a month’s tax and renew their disc at the . only a335000 a year each in unpaid road tax 97 barely enough to cover the cost ..

Don’t know how these can be called “hidden”, they are listed plain as day in my recipt every time I purchase a ticket. Sometimes, lumped together in a couple section but nothing stopping me from looking up the extra charges.

Use of the word “hidden” is just a way of excusing laziness. And frankly, while I don’t like extra fees/taxes, I’m fine with them just summing these into a single line item and then referring me to a Web site for further information. I don’t need every bit of detail available to me on my receipt, which would just make it harder to read and after purchasing a couple tickets I wouldn’t care any longer.

its interesting analysis about fiscal matters is reflecting in this writing.

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You have to pay more for foreign tour packages from july 1, 2023: how to book smartly to save better.

If you are buying a foreign tour package from a travel agent, you have to pay a tax collection at source (TCS) of 20% from July 1, 2023. Budget 2023 has hiked the TCS rate for foreign remittances under the LRS from 5% to 20% (except for education and medical purposes). With this sharp rise in TCS, foreign trips are likely to become costlier soon.

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Complete guide to taxes and fees on airline tickets

Editor's Note

If you've ever looked at the price breakdown of a plane ticket, you may have noticed taxes and fees tacked on to the final fare price.

Some of these are required by the government of the country from which you are departing, such as the 7.5% excise tax for domestic flights and a segment fee that the U.S. government charges.

The second category of fees is surcharges imposed by the airlines.

You'll see these taxes and fees whether you use cash or redeem an award ticket; fees placed on award bookings can be especially high since airlines want to recover more than just the value of the redemption itself due to high fuel costs.

This guide examines these different ancillary costs of airline bookings so you're not caught off-guard the next time you book a flight.

For more TPG news delivered each morning to your inbox, sign up for our daily newsletter .

Government-imposed taxes and fees

When you book a flight with cash or miles, expect to pay various taxes and fees. These fees may be imposed by the country in which your trip starts, the country in which your trip ends or both.

The amount of these fees can vary significantly. For example, you've likely noticed a $5.60 fee for flights in the U.S.

The U.S. Transportation Security Administration instituted this fee, known as the Passenger Fee or the September 11 Security Fee, in response to the 9/11 attacks to help offset the costs of additional security. You'll see the fare tacked on to all flights from the U.S., regardless of carrier.

"The fee is collected by air carriers from passengers at the time air transportation is purchased," according to TSA. "Air carriers then remit the fees to TSA."

TSA raised the fee to its current price in 2014, but the round-trip fee cannot exceed $11.20. Most countries have similar charges for flights, often referred to as a passenger service charge.

For example, the United Kingdom applies an Air Passenger Duty on all international flights departing from the U.K. based on the distance traveled and the fare type. As a result, these fees for flights from the U.K. can range anywhere from $16.50 to $218, depending on the route and ticket type.

In addition to passenger service charges, virtually all countries impose an air transport tax. In the U.S., there's also a federal segment fee and a passenger facility charge of up to $18, determined by the U.S. airport(s) from which you are departing.

Other charges you might come across on U.S. flights are only applicable to certain routes. For example, there is a 7.5% base fare for domestic travel from the continental U.S. to Hawaii.

If you're flying internationally from the U.S. with a layover, know that you'll be on the hook for the taxes and fees of each country you take a flight from. For example, take a look at the below round-trip flight on American Airlines, from Chicago's O'Hare International Airport (ORD) to Berlin Brandenburg Airport (BER), with a layover each way at Heathrow Airport (LHR).

Although the base fare is only $1,100, the overall price includes more than $600 in taxes and fees; it includes a $5.60 U.S. security fee, $78 in German taxes and a $70 passenger service charge from the U.K.

Each carrier should provide a breakdown detailing the taxes and fees applied to your ticket. There's also $400 in carrier-imposed fees, which we will get to next.

Related: Everything you need to know about American Airlines AAdvantage

Carrier-imposed charges

In addition to government-imposed taxes and fees, you'll also see carrier-imposed fees.

In the case of award tickets, these fees come from the operating carrier, not the program you use to book your award ticket. However, you may or may not be liable for actually paying them depending on the loyalty program you use to book your award ticket.

This is where my warning comes in about these carrier charges being extremely expensive. I recently discovered this when attempting to book award travel through ANA Mileage Club .

As we've previously covered , one of ANA's best sweet spots available for award travel is its 88,000-mile round-trip business-class award availability to Europe . This makes it a great option for booking tickets on other Star Alliance partners, such as Air Canada, United and Lufthansa.

The typical business-class award ticket to Europe through other programs — such as American AAdvantage and United MileagePlus — usually costs 115,000 to 154,000 miles round-trip. So, transferring points and booking through ANA is a seemingly fantastic deal.

In conducting a test for this story, I searched for award availability on ANA for a round-trip ticket from John F. Kennedy International Airport (JFK) to Vienna International Airport (VIE).

You'll likely have to play around with your dates to find a round-trip flight with business-class fares on each segment. I eventually found a round-trip business-class ticket at the 88,000-mileage price tag for early 2023.

Although I was thrilled to find this, I was startled to see nearly $2,000 in taxes and fees tacked on to the base mileage fare; the fees were composed almost entirely of carrier-imposed surcharges.

For context, booking the same flight through United would cost 147,000 MileagePlus miles plus just more than $62 in taxes and fees.

So what's the reason for this discrepancy? Austrian Airlines adds fuel surcharges — one of the most common carrier-imposed surcharges — to its award tickets. ANA Mileage Club passes these carrier-imposed surcharges on to the consumer while United MileagePlus doesn't charge them.

This example is precisely why it's important to know which frequent flyer programs pass on fuel surcharges to their customers . Regarding Star Alliance award tickets, other programs that don't pass these on include Air Canada Aeroplan and Avianca LifeMiles.

However, that doesn't mean all ANA Mileage Club award tickets will have high fees.

Thankfully, many airlines do not add fuel surcharges to award tickets. Some of these airlines are TAP Air Portugal, SAS and United, among others. No matter how you book an award ticket with one of these carriers — whether through United MileagePlus, ANA Mileage Club or another Star Alliance program — you'll only pay the government-imposed taxes and fees.

For example, this business-class award ticket from Newark Liberty International Airport (EWR) to Lisbon Airport (LIS) costs 88,000 miles and $56.67 in taxes and fees after currency conversion.

It's also important to note that these surcharges depend on the route you're flying and the class of service you're booking.

Related: How to fly business class to Europe with no fuel surcharges

Additional award-booking fees

Finally, it's also important to note the fees associated with the ticket itself; some airlines charge additional costs for award travel depending on how you book, including close-in fees and service fees for booking via phone.

Although most airlines have eliminated close-in booking fees for travel booked within a certain time frame of departure, some airlines still charge an extra fee for this.

Airlines may charge you extra to book via phone. For instance, United charges $25 for most United MileagePlus members (excluding Premier Platinum and Premier 1K elite members) and Alaska Airlines charges a $15 call center service charge plus a $12.50 booking fee each way for all of its partner bookings.

Additionally, some loyalty programs charge a fee for booking partner award tickets. Air Canada Aeroplan charges roughly $30 for all tickets booked with a partner airline. Likewise, Alaska Airlines Mileage Plan charges $12.50 per partner award ticket booked.

Finally, some frequent flyer programs will impose change or cancellation fees to modify or cancel an award ticket. Thankfully, most U.S. airlines ended this practice during the coronavirus pandemic.

Related: Everything you need to know about points, miles, airlines and credit cards

Bottom line

Award fees for airline bookings vary from frequent flyer program to frequent flyer program. Some pass on carrier-imposed surcharges while others don't. Likewise, some airlines add fuel surcharges, while others do not.

Before you make an award booking, browse through different airline booking portals to find a flight with the right combination of minimal miles and minimal surcharges.

For even more information on how to best avoid extra surcharges on bookings, read:

• How to avoid fuel surcharges on award travel
• British Airways increases fuel surcharges — here's how to avoid them
• Here's why you need a healthy stash of Avianca LifeMiles
• Sweet Spot Sunday: How to fly round-trip to Europe in business class for 88,000 miles

Additional reporting by Ethan Steinberg, Kyle Olsen and Andrew Kunesh.

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These are all the destinations you’ll need to pay extra to visit this year

More and more popular travel destinations are introducing tourist taxes to tackle problems caused by overtourism – here’s what you’ll have to pay

This year, international travel is forecast to bounce back to the highest levels since 2019 – and while that’s great news for the tourism industry in general, many cities, attractions and entire regions are suffering under the weight of overtourism .

The potential for damage to historic sites, unhinged tourist behaviour  and the simple issue of overcrowding are all common consequences of overtourism. That’s why a growing list of popular travel destinations have introduced a tourist tax, with the hopes of controlling visitor numbers and improving local infrastructure to better cater to higher visitor capacity. 

Many countries and cities introduced a tourist tax in 2023, and many more are due to launch theirs in 2024. Tourist taxes aren’t a new thing – you’ve probably paid one before, tied in with the cost of a plane ticket or the taxes you pay at a hotel. 

However, more destinations than ever before are creating this fee for tourists, and many places have increased the cost of existing ones. Here’s a full list of all the destinations charging a tourist tax in 2024, including all the recently introduced and upcoming tourist taxes you need to know about. 

Austria charges visitors a nightly accommodation tax which differs depending on province. In Vienna or Salzburg , you could pay 3.02 percent per person on top of the hotel bill. 

Belgium , like Austria, has a nightly fee. Some hotels include it in the rate of the room and add it separately to your bill, so read it carefully.

The rate in Brussels is charged per room, and varies depending on the size and rating of your hotel, but is usually around €7.50. Antwerp also charges per room. 

Bhutan has always been known for its steep tourist taxes and charges. In 2022, the Himalayan kingdom  tripled the amount it charged visitors in tax  to a minimum of  $200 per day , but that amount has since been lowered. In 2024, the daily fee for the majority of visitors is  $ 100,  and that is due to continue until August 31, 2027. 

Bulgaria applies a fee to overnight stays, but it reaches a maximum of only €1.50. 

Caribbean Islands

The following Caribbean Islands charge a tourist tax, ranging from between €13 to €45: Antigua and Barbuda, Aruba, the Bahamas, Barbados, Bermuda, Bonaire, the British Virgin Islands, the Cayman Islands, Dominica, the Dominican Republic , Grenada, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Maarten, St. Vincent and the Grenadines, Trinidad and Tobago, and the US Virgin Islands. 

The tax tends to be tied into the cost of a hotel or a departure fee. 

Croatia only charges its visitors a fee of 10 kuna (€1.33) per night during peak season. 

Czechia (also known as Czech Republic)

Czechia only applies a fee to those travelling to Prague . It doesn’t apply to those under the age of 18, and is less than €1 per person, per night. 

France ’s ‘taxe de séjour’ varies depending on city, and tends to be added to your hotel bill. It varies from €0.20 to €4 per person, per night. 

Earlier this month, Paris announced it would be increasing its fee by up to 200 percent for those staying in hotels, Airbnbs, and campsites, but that it plans to put the funds towards improving the city’s services and infrastructure. 

READ MORE: The cost of visiting Paris will soar this summer – here’s why

Germany charges visitors a ‘culture tax’ (kulturförderabgabe) and a ‘bed tax’ (bettensteuer) in certain cities, including Frankfurt , Hamburg and Berlin , which tends to be around five percent of your hotel bill. 

Greece ’s tourist tax is based on numbers. Specifically, how many stars a hotel has, and the number of rooms you’re renting. The fee was introduced by the Greek Ministry of tourism to help pay off the country’s debt, and can be anything from €4 per room.

Hungary charges visitors four percent of the price of their room, but only in Budapest . 

Iceland is introducing a tourist tax to protect its ‘unspoilt nature’ this year, which will cost between  €4 to €7 per night. It comes after annual tourist numbers reached an estimated 2.3 million per year. 

In Indonesia , the only destination which charges a tourist tax is Bali , and the fee is set to increase this February  to $10 (£7.70, €8.90, IDR 150,000) – but is a one-time entry fee, not a nightly tax. It apparently goes towards protecting the island’s ‘environment and culture.’

Much like in France, Italy ’s tourist tax varies depending on your location. Rome ’s fee is usually between €3 to €7 per night, but some smaller Italian towns charge more. 

Venice finally announced in September that its tourist tax, a €5 (£4.30, $5.40) fee which will be applicable on various days during high season, will launch in 2024. It only applies to day-trippers rather than those staying overnight, though.

Japan has a departure tax of around 1,000 yen (€8). 

Malaysia has a flat-rate tax which it applies to each night you stay, of around €4 a night. 

New Zealand

New Zealand ’s tax comes in the from of an International Visitor Conservation and Tourism Levy of around €21 which much be paid upon arrival, but that does not apply to people from Australia. 

Netherlands

The Netherlands has both a land and water tax. Amsterdam is set to increase its fee  by 12.5 percent in 2024, making it the highest tourist tax in the European Union. 

Portugal has a low tourist tax of €2, which applies to all those over the age of 13. It’s only applicable on the first seven nights of your visit and applies in 13 Portuguese municipalities, including Faro, Lisbon and Porto.   

Olhão became the latest area to start charging the fee between April and October. Outside of this period, it gets reduced to €1 and is capped at five nights all year round. The money goes towards minimising the impact of tourism in the Algarve town. 

Slovenia also bases its tax on location and hotel rating. In larger cities and resorts, such as Ljubljana and Bled, the fee is higher, but still only around €3 per night. 

Spain 

Spain applies its Sustainable Tourism Tax to holiday accommodation in the Balearic Islands to each visitor over the age of sixteen. Tourists can be charged up to €4 per night during high season. 

Barcelona ’s city authorities announced they plan to increase the city’s tourist tax over the next two years – the fee is set to rise to €3.25 on April 1, 2024. The council said the money would go towards improving infrastructure and services. This is in addition to regional Catalan tax. 

Switzerland

Switzerland ’s tax varies depending on location, but the per person, per night cost is around €2.20. It tends to be specified as a separate amount on your accommodation bill. 

Thailand 

Thailand introduced a tourist tax to the price of flights in April 2022, in a similar effort to the Balinese aim of moving away from its rep as a ‘cheap’ holiday destination. The fee for all international visitors is 300 baht (£6.60, $9). 

The US has an ‘occupancy tax’ which applies across most of the country to travellers renting accommodation such as hotels, motels and inns. Houston is estimated to be the highest, where they charge you an extra 17 percent of your hotel bill. 

Hawaii  could be imposing a ‘green fee’ – initially set at $50 but since lowered to $25 – which would apply to every tourist over the age of 15. It still needs to be passed by lawmakers, but if approved, it wouldn’t be instated until 2025.

The European Union

Finally, the European Union is planning on introducing a tourist visa , due to start in 2024. The €7 application will have to be filled out by all non-Schengen visitors between the ages of 18 and 70, including Brits and Americans. 

READ MORE: Why sustainable tourism isn’t enough anymore

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Foreign travel to get expensive from July 1! Tax collected at source to jump from 5% to 20%

As per the announcement made in budget 2023, the tax collected at source (tcs) rate on foreign remittances, including bookings for tour packages, will rise sharply from 5 per cent to 20 per cent of the total transaction amount from july 1, 2023..

• Updated May 18, 2023, 7:41 PM IST

Due to the extended hiatus caused by Covid-19 and the desire to escape the scorching weather, travel bookings have surged by 30 per cent to 40 per cent this season. However, the surge can also be attributed to the impending increase in foreign travel expenses, which is set to take effect from July 1, 2023.  As per the announcement made in Budget 2023, the Tax Collected at Source (TCS) rate on foreign remittances, including bookings for tour packages, will rise sharply from 5 per cent to 20 per cent of the total transaction amount from July 1, 2023. This means if the air travel costs Rs 50,000, the corresponding TCS amount would be Rs 10,000, which is equivalent to 20 per cent of the air travel cost.

Not only foreign tour packages but 20 per cent TCS rule also applies on credit cards on international transactions, which means even direct booking would come under the ambit of 20 per cent TCS, as per finance ministry circular issued on May 16. According to PTI report the ministry on May 16 notified the Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2023, to include international credit card payments in the LRS. 

Also WATCH:  India’s automobile sector: Insights On Growth, CV & PV Sales, Hero Vs Honda, Maruti, Hyundai Vs Tata Motors, M&M & more

“The rate of TCS on LRS remittances including foreign travel bookings is all set to increase four-fold from 5 per cent to 20 per cent effective 1st July 2023. TCS at 5 per cent on LRS remittances was first introduced in October 2020, and it has already led to a significant loss of business for domestic travel and tour agents (DTAs) as customers now prefer booking overseas travel services with Global Travel Agents (GTAs), who have been escaping TCS compliance and hence can offer better pricing on their platforms. The proposed four-fold rate increase will widen the pricing gap as the upfront cost for travellers will increase further on DTAs, motivating them to book with GTAs," Mohit Kabra, Group CFO, MakeMyTrip told Business Today.

Investments and expenditures abroad are made by using the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI), which is available to all resident Indians. Through this scheme, an individual can remit up to $250,000 per financial year for such transactions. Once the rule comes into play Indian travellers will be subject to a 20 per cent tax collected at source by authorized banks or travel agents when making payments for international travel bookings, including airfare, hotel accommodations, or tour packages.

"The tax collected at source (TCS) shall be accumulated as an aspect of the payment and subsequently transmitted to the government. It is imperative for Indian travellers to take into account these supplementary financial obligations while strategizing their global adventures. The imposition of a 20 per cent TCS is likely to augment the overall expenditure incurred by individuals on their travel. However, the traveller can claim TCS credit while filing their tax return. So no overall impact will be seen," says Rikant Pittie, Co-founder, EaseMyTrip.

The new Tax Collected at Source (TCS) rules will also apply to transactions made with credit cards, added Pittie. 

Undoubtedly, it is anticipated that foreign travel will incur greater expenses commencing July 1st, 2023, as a result of the enforcement of the 20 per cent TCS on foreign remittances for diverse objectives, including travel abroad. "It is mandatory for Indian globetrotters to take into account this supplementary financial obligation while devising their overseas excursions. The imposition of a 20 per cent TCS is likely to augment the immediate total expenditure incurred by individuals on their travel. However, there will be no difference in their travel costs as they can claim it while filing their return," says Pittie.

• #Foreign travel
• #Foreign travel expensive
• #TCS on foreign remittances

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Customs Duty Information

What is a customs duty.

Customs Duty is a tariff or tax imposed on goods when transported across international borders. The purpose of Customs Duty is to protect each country's economy, residents, jobs, environment, etc., by controlling the flow of goods, especially restrictive and prohibited goods, into and out of the country.

Dutiable refers to articles on which Customs Duty may have to be paid. Each article has a specific duty rate, which is determined by a number of factors, including where you acquired the article, where it was made, and what it is made of. Also, anything you bring back that you did not have when you left the United States must be "declared." For example, you would declare alterations made in a foreign country to a suit you already owned, and any gifts you acquired outside the United States. American Goods Returned (AGR) do not have to be declared, but you must be prepared to prove to U.S. Customs and Border Protection the articles are AGR or pay Customs duty.

The Customs Duty Rate is a percentage. This percentage is determined by the total purchased value of the article(s) paid at a foreign country and not based on factors such as quality, size, or weight. The Harmonized Tariff System (HTS) provides duty rates for virtually every existing item. CBP uses the Harmonized Tariff Schedule of the United States Annotated (HTSUS), which is a reference manual that the provides the applicable tariff rates and statistical categories for all merchandise imported into the U.S.

Duty-Free Shop articles sold in a Customs duty-free shop are free only for the country in which that shop is located. Therefore, if your acquired articles exceed your personal exemption/allowance, the articles you purchased in Customs duty-free shop, whether in the United States or abroad, will be subject to Customs duty upon entering your destination country. Articles purchased in a American Customs duty-free shop are also subject to U.S. Customs duty if you bring them into the United States. For example, if you buy alcoholic beverages in a Customs duty-free shop in New York before entering Canada and then bring them back into the United States, they will be subject to Customs duty and Internal Revenue Service tax (IRT).

Determining Customs Duty

The flat duty rate will apply to articles that are dutiable but that cannot be included in your personal exemption, even if you have not exceeded the exemption. For example, alcoholic beverages. If you return from Europe with $200 worth of purchases, including two liters of liquor, one liter will be duty-free under your returning resident personal allowance/exemption. The other will be dutiable at 3 percent, plus any Internal Revenue Tax (IRT) that is due.

A joint declaration is a Customs declaration that can be made by family members who live in the same household and return to the United States together. These travelers can combine their purchases to take advantage of a combined flat duty rate, no matter which family member owns a given item. The combined value of merchandise subject to a flat duty rate for a family of four traveling together would be $4,000. Purchase totals must be rounded to the nearest dollar amount.

Tobacco Products

Returning resident travelers may import tobacco products only in quantities not exceeding the amounts specified in the personal exemptions for which the traveler qualifies (not more than 200 cigarettes and 100 cigars if arriving from other than a beneficiary country and insular possession). Any quantities of tobacco products not permitted by a personal exemption are subject to detention, seizure, penalties, abandonment, and destruction. Tobacco products are typically purchased in duty-free stores, on sea carriers operating internationally or in foreign stores. These products are usually marked "Tax Exempt. For Use Outside the United States," or "U.S. Tax Exempt For Use Outside the United States."

For example, a returning resident is eligible for the $800 duty-free personal exemption every 31 days, having remained for no less than 48 hours beyond the territorial limits of the United States except U.S. Virgin Islands, in a contiguous country which maintains free zone or free port, has remained beyond the territorial limits of the United States not to exceed 24 hours. This exemption includes not more than 200 cigarettes and 100 cigars:

• If the resident declares 400 previously exported cigarettes and proves American Goods Returning (AGR) , the resident would be permitted or allowed to bring back his AGR exempt from Customs duty.
• If the resident declares 400 cigarettes, of which 200 are proven AGR or previously exported and 200 not AGR or not previously exported, the resident would be permitted to bring back his 200 previously exported cigarettes tax and Internal Revenue Tax (IRT) free under his exemption.
• The tobacco exemption is available to each adult 21 years of age or over.

In December 2014, President Obama announced his intention to re-establish diplomatic relations with Cuba. The President did not lift the embargo against Cuba. Absent a democratic or transitional government in Cuba, lifting the embargo requires a legislative statutory change. Since the announcement, however, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) has amended the Cuba Assets Control Regulations (CACR), effective January 16, 2015, to authorize travel within certain categories to and from Cuba and to allow certain imports from and exports to Cuba.

All travelers, including those from Cuba, must comply with all applicable laws and regulations. This includes the Harmonized Tariff Schedule of the United States (“HTSUS”) (2016) limitations on personal exemptions and rules of duty extended to non-residents and returning U.S. residents.

Persons subject to U.S. jurisdiction are authorized to engage in all transactions, including payments necessary to import certain goods and services produced by independent Cuban entrepreneurs as determined by the State Department and set forth in the State Department’s Section 515.582 list located at FACT SHEET: U.S. Department of State Section 515.582 List . On October 17, 2016, the Office of Foreign Asset Control relaxed restrictions so authorized travelers, arriving direct from Cuba, are now able to bring Cuban merchandise for personal use back to the United States and qualify for the U.S. Resident exemption (HTSUS 9804.00.65, which allows up to $800 total in goods, and adults 21 and older may include 1 liter of alcohol, 200 cigarettes, and 100 cigars). This exemption also applies to travelers, arriving from any country in the world, with declared Cuban merchandise.

Declared amounts in excess of the exemption are subject to a flat 4% rate of duty, and any applicable IRS taxes, pursuant to HTSUS 9816.00.20 and 19 CFR 148.101, which impose a duty rate of 4% of the fair retail value on goods from a Column 2 country.

Regarding goods: The Department of State will, in accordance with the State Department’s Section 515.582, issue a list of prohibited goods. Placement on the list means that any listed good falls within certain Sections and Chapters of the HTSUS which do not qualify for this exception.

Regarding entrepreneurs : The Cuban entity must be a private business, such as a self-employed entrepreneur or other private entity, not owned or controlled by the Government of Cuba. Travelers engaging in these transactions are required to obtain evidence that demonstrates the goods purchased were obtained from a Cuban entrepreneur, as described above, and should be prepared to furnish evidence of such to U.S. Government authorities upon request. Evidence may include a copy of the entrepreneur’s license and/or an invoice and/or purchase order demonstrating the goods were purchased from a specific Cuban entrepreneur. Whether a traveler presents adequate evidence that a good qualifies from importation and that it was bought from a licensed independent Cuban entrepreneur shall be determined on a case-by-case basis by the inspecting CBP officer.

Imports under Section 515.582 (i.e., imports from licensed independent entrepreneurs not on the Department of State’s prohibited list) must comply with all current U.S. Customs and Border Protection (CBP) formal and informal entry requirements, as applicable. This means that, while there is no value cap on the amount of goods that may be imported under this provision, the applicable duties in the HTSUS must be considered.

In particular, HTSUS 9804.00.65 allows for the duty-free importation of personal-use articles from a Column 2 country when the fair retail value of such goods is under $800. Also see 19 C.F.R. 148.33. HTSUS 9816.00.20 establishes a duty rate of 4% of the fair retail value for personal-use articles under $1,000 imported from a Column 2 country. Thus, any articles imported under this section for personal use with a value of under $800 can be imported duty free, and any articles imported for personal use with a value between $800 and $1800, will be subject to a flat 4% duty rate. Any articles valued over $1800, regardless of whether for personal use, will be subject to entry and should be classified, appraised, and assessed duty appropriately under the specific HTSUS Column 2 rates. Also see 19 C.F.R. 148.101 and 148.102. Any commercial importation, i.e., not for personal use, is subject to entry requirements and payment of applicable duties, fees, and taxes.

While these revised regulations may facilitate certain travel and trade with Cuba, all other laws and regulations applicable to international travel and the importation/exportation of goods remain in full effect. This means that all United States agency requirements applicable to a particular importation must be met and fully complied with, such as the regulations of the Food and Drug Administration, the Consumer Product Safety Commission, and the Animal and Plant Health Inspection Service.

Alcoholic Beverages

One American liter (33.8 fl. oz.) of alcoholic beverages may be included in your returning resident personal exemption if:

• You are at least 21 years old.
• It is intended exclusively for your personal use and not for sale.
• It does not violate the laws of the state in which you arrive.

Federal and state regulations allow you to bring back one liter of an alcoholic beverage for personal use duty-free. However, states may allow you to bring back more than one liter, but you will have to pay any applicable Customs duty and IRT.

While federal regulations do not specify a limit on the amount of alcohol you may bring back beyond the personal exemption amount, unusual quantities may raise suspicions that you are importing the alcohol for other purposes, such as for resale. CBP officers enforce the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) laws, rules, and regulations and are authorized to make on-the-spot determinations that an importation is for commercial purposes. If such determination is made, it may require you to obtain a permit and file a formal entry to import the alcohol before the alcohol is released. If you intend to bring back a substantial quantity of alcohol for your personal use, you should contact the U.S. Port of Entry (POE) through which you will be re-entering and make prior arrangements for the importation.

Also, state laws might limit the amount of alcohol you can bring in without a license. If you arrive in a state that has limitations on the amount of alcohol you may bring in without a license, that state's law will be enforced by CBP, even though it may be more restrictive than federal regulations. We recommend that you check with the state government about their limitations on quantities allowed for personal importation and additional state taxes that may apply. Ideally, this information should be obtained before traveling.

In brief, for both alcohol and cigarettes, the quantities eligible for duty-free treatment may be included in your $800 or $1,600 returning resident personal exemption, just as any other purchase should be. But unlike other kinds of merchandise, amounts beyond those discussed here as being duty-free are taxed, even if you have not exceeded, or even met, your personal exemption. For example, your exemption is $800 and you bring back three liters of wine and nothing else, two of those liters will be dutiable and IR taxed. Federal law prohibits business-to-private consumer shipping of alcoholic beverages by mail within the United States.

How to Pay Customs Duty

If you owe Customs duty, you must pay it before the conclusion of your CBP processing. You may pay it in any of the following ways:

• U.S. currency only.
• Personal check in the exact amount, drawn on a U.S. bank, made payable to U.S. Customs and Border Protection. You must present identification, such as a passport or U.S. driver's license. CBP does not accept checks bearing second-party endorsement.
• Government check, money order or traveler's check if the amount does not exceed the duty owed by more than $50.

In some locations/POEs, you may pay duty with either MasterCard or VISA credit cards.

Increased Duty Rates

Items from certain countries.

Under what is known as its "301" authority, the United States may impose a much higher than normal duty rate on products from certain countries. Currently, the United States has imposed a 100 percent rate of duty on certain products of Austria, Belgium, Denmark, Finland, France, The Federal Republic of Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden and the Ukraine. If you should bring more of any of these products back with you than fall within your exemption or flat rate of duty, (see below) you will pay as much in duty as you paid for the product or products.

While most of the products listed are not the type of goods that travelers would purchase in sufficient quantities to exceed their exemption, diamonds from the Ukraine are subject to the 100 percent duty and might easily exceed the exemption amount.

For information on countries that may become subject to a higher than normal duty rate, check the Department of Commerce Web site.

Countries With Free or Reduced Customs Duty Rates

The United States gives Customs duty preferences-that is, conditionally free or subject to reduced rates-to certain designated beneficiary developing countries under a trade program called the Generalized System of Preferences (GSP). Some products that would otherwise be dutiable are not when they are wholly the growth, product, or manufacture of a beneficiary GSP country. Visit the Office of United States Trade Representative website for additional GSP information.

• Many products from Caribbean and Andean countries are exempt from duty under the Caribbean Basin Initiative (CBI), Caribbean Basin Trade Partnership Act, Andean Trade Preference Act and the Andean Trade Promotion and Drug Eradication Act.
• Many products from certain sub-Saharan African countries are exempt from duty under the African Growth and Opportunity Act.
• Most products from Israel, Jordan, Chile and Singapore may also enter the United States either free of duty or at a reduced rate under the U.S. free trade agreements with those countries.
• The North American Free Trade Agreement (NAFTA) went into effect in 1994. If you are returning from Canada or Mexico , your goods are eligible for free or reduced duty rates if they were grown, manufactured, or produced in Canada or Mexico, as defined by the Act.

Additional information on these special trade programs can be found on the CBP Web site.

Household Effects & Personal Effects - Customs Duty Guidance

Household effects conditionally included are duty-free. These include such items as furniture, carpets, paintings, tableware, stereos, linens, and similar household furnishings; tools of the trade, professional books, implements, and instruments.

You may import household effects you acquired abroad duty-free if:

• You used them abroad for no less than one year.
• They are not intended for any other person or for sale.

For Customs purposes, clothing, jewelry, photography equipment, portable radios, and vehicles are considered personal effects and cannot be brought in duty-free as household effects. However, duty is usually waived on personal effects more than one year of age. All vehicles are dutiable.

Mailing and Shipping Goods - Customs Duty Guidance

Unaccompanied purchases are goods you bought on a trip that are being mailed or shipped to you in the United States. In other words, you are not carrying the goods with you when you return. If your unaccompanied purchases are from an insular possession (IP) or a Caribbean Basin Initiative (CBI) country and are being imported within 30 days and sent directly from those locations to the United States, you may enter them as follows:

• Up to $1,600 in goods will be duty-free under your personal exemption if the merchandise is from an IP.
• Up to $800 in goods will be duty-free if it is from a CBI or Andean country.
• Any additional amount, up to $1,000, in goods will be dutiable at a flat rate (3%).

To take advantage of the Customs duty-free exemption for unaccompanied tourist purchases (mailing/shipping) from an IP or CBI country:

Step 1. At place and time of purchase, ask your merchant to hold your item until you send him or her a copy of CBP Form 255 (Declaration of Unaccompanied Articles), which must be affixed to the package when it is shipped.

Step 2. (a) On your declaration form (CBP Form 6059B), list everything you acquired on your trip that is accompanying you. You must also complete a separate Declaration of Unaccompanied Articles form (CBP Form 255) for each package or container that will be sent to you after you arrive in the United States. This form may be available where you make your purchase. If not, you may find the form on the CBP website.

Step 3. When you return to the United States, the CBP officer will: (a) collect Customs duty and any tax due on the dutiable goods you have brought with you; (b) verify your list of unaccompanied articles with your sales receipts; (c) validate your CBP Form 255 to determine if your purchases are duty-free under your personal exemption ($1,600 or $800) or if the purchases are subject to a flat rate of duty.

Step 4. Two copies of the three-part CBP Form 255 will be returned to you. Send the yellow copy of the CBP Form 255 to the foreign shopkeeper or vendor holding your purchase, and keep the other copy for your records.

Step 5. When the merchant gets your CBP Form 255, he or she must place it in an envelope and attach the envelope securely to the outside wrapping of the package or container. The merchant must also mark each package "Unaccompanied Purchase." Please remember that each package or container must have its own CBP Form 255 attached , the most important step to follow in order to gain the benefits allowed under this procedure.

Step 6. If your package has been mailed, the U.S. Postal Service will deliver it after it clears Customs. If you owe duty, the Postal Service will collect the duty along with a postal handling fee. If a freight service transports your package, they will notify you of its arrival and you must go to their office holding the shipment and complete the CBP entry procedure. If you owe duty or tax, you will need to pay it at that time in order to secure the release of the goods. You could also hire a customs customhouse broker to do this for you. However, be aware that customhouse brokers are private businesses and are not CBP employees, and they charge fees for their services.

If freight or express packages from your trip landed in the U.S. before you return and you have not made arrangements to pick them up, CBP will authorize their placement into general order bonded warehouse or public storage after 15 days (days for perishable, flammable, explosives). This storage and all other related charges (transportation, demurrage, handling) will be at your risk and expense. If the goods are not claimed within six months, they will be sold at auction.

Per U.S. Postal Service regulations, packages sent by mail and not claimed within 30 days from the date of U.S. arrival will be returned to the sender unless the amount of duty is being protested.

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Will you have to pay 20% extra for international travel? New TCS rule explained

By Condé Nast Traveller

The Finance Ministry has introduced amended rules under the Foreign Exchange Management Act (FEMA), increasing the Tax Collected at Source (TCS) for international spending from 5% to 20%. This increased tax will apply from 1 July, and there are also new rules regarding international credit card transactions. Here’s a handy explainer on what the new 20% TCS rule means, and how things will change for you:

What is TCS?

Tax Collected at Source is a tax payable by a seller which he collects from the buyer at the time of sale of goods so that it can be deposited with the tax authorities.

What is the new 20% TCS rule?

Previously, the TCS on international spending was 5%. Starting 1 July, this will increase to 20%. This means that any travel bookings you make, July onwards, will cost 20% more upfront. Any international travel package, airline and accommodation bookings will be 20% higher in cost than before. “Suppose you’re booking a package that costs Rs100, it will now cost Rs120—with Rs20 being collected as tax,” says Aliasgar A Khumosi, a chartered accountant. This applies for all forms of payments.

What kind of transactions will attract the 20% TCS?

Any spending through a debit card, credit card or forex card outside of India will attract the 20% TCS. This includes meals at restaurants, Ubers, flight bookings, hotel bookings, shopping and more. However, the Ministry of Finance has issued a clarification stating that “any payments by an individual using their international Debit or Credit cards up to Rs7 lakh per financial year will be excluded from the LRS (Liberalized Remittance Scheme) limits and hence, will not attract any TCS”.

Can you book through a travel agent to save TCS?

The rule also applies to bookings made through a travel agency—you will pay 20% more to your travel agency for their services as a result of the new rule. Beyond foreign travel, the rule applies to money sent abroad as well as any other remittances.

Will a forex card save you the TCS?

No. Transactions on forex cards and debit cards will also attract the 20% TCS.

How does it affect international credit card transactions?

In consultation with the RBI, the Finance Ministry has omitted Rule 7 of the Foreign Exchange Management (Current Account Transactions) Rules, 2000. Under this rule, forex spending through international credit cards was  exempted from the Liberalized Remittance Scheme (LRS). This scheme enables Indian residents to remit funds abroad for certain specified purposes up to a limit of $2,50,000 (Rs2 crore). Until now, the scheme only included debit cards, forex cards and bank transfers. Since international credit card transactions were not included, they were also exempt from the TCS levies that came under the scheme. With the new rule, transactions made with credit cards outside of India will also fall under the LRS. Until 1 July, the transactions will carry a 5% TCS levy, following which the TCS for transactions above Rs7 lakh (per financial year) will increase to 20%.

Are there any foreign expenses that are exempted from the 20% TCS?

Yes. There is no change in the TCS rate for remittances made for the purpose of any education or medical treatment abroad.

Can you claim the 20% TCS back?

“You can get your tax back once you file your returns. It’s essentially an advance tax paid by you,” says A Khumosi. While you will have to pay more for international travel upfront, you can claim the tax back through your Form 26AS—your annual tax statements—when you file your returns.

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• At the airport
• International travel

Tax exemptions

Tourism tax refunds.

You may be entitled to a refund of some taxes included in the price of your ticket if you meet the applicable criteria for exemptions and your itinerary involves:

• Travel between the U.S. and Mexico (including travel between Canada and Mexico via the U.S.)
• International travel departing Belize, Colombia or Trinidad and Tobago
• International travel arriving into Colombia

All refund claims must be submitted within 12 months of ticket issuance.

Belize Airport Development Tax (BU) exemptions

• Airline crew on duty
• Belizean citizens with a valid passport, Belizean resident card or a naturalization certificate
• Ministers of government, members of the national assembly, or members of the diplomatic and consular corp
• Military personnel
• Mayors of municipalities
• Official of international organizations
• Caribbean community secretariat personnel traveling on official business
• Minister and officials of other government visiting Belize at the invitation of the Belize government
• Public officers traveling on official business
• Approved scholarship holders leaving Belize to study abroad and sports and cultural groups representing Belize who been accredited by the government.

Belize Airport Departure Tax (FV) exemptions

Belize conservation tax (fu) exemptions.

• Infant under the age of two
• Children under the age of 12

Belize International Security Fee (FW) exemptions

Colombia tourism tax (js) exemptions.

• Passengers arriving to Colombia on international flights and connecting with international flights within 24 hours or less
• Passengers arriving on international flights and connecting with domestic flights or stopping in Colombia for more than 24 hours are NOT exempted.

Colombia Resident Exit Tax (DG) exemptions

• Infants under the age of two
• Children under the age of five
• Government officials
• Non-Colombian residents whose stay does not exceed 60 days in Colombia
• Sports delegations accredited by the national government
• Colombians residents abroad whose stay does not exceed 180 days in Colombia
• Transiting Colombia within 24 hours unless on domestic to international sector transit
• Students with government grants
• Airline staff traveling on duty

Mexico Tourism Tax (UK) exemptions

• Mexican citizen (Passport)
• Resident of Mexico (permanent or temporary) holding a Mexico Visa
• Transit/transfer passenger remaining less than 24 hours in Mexico; passengers stopping over in Mexico aren’t entitled to a refund

Mexico Departure Tax (TUA) (XD) exemptions

• Diplomat (does not include staff or U.S. Embassy in Mexico)

If your travel is not complete and you meet the exception criteria, please contact us for assistance.

• Reservations and ticket changes

If you've completed all travel and think you’re entitled to a refund, please contact Refunds to submit a claim.

Receipts and refunds

Trinidad and Tobago Passenger Service Charge Tax exemptions

• Passengers who are 60 years or above and is a citizen or a resident of Trinidad and Tobago
• Members of the Trinidad Tobago defense force of the armed forces of any country traveling on official duty
• Members of the crew of any aircraft or ship are exempt
• Transiting Trinidad Tobago within 24 hours unless on domestic to international sector transit
• Involuntary rerouting due to technical difficulties, weather conditions or other valid reasons
• Passengers arriving on international flights and connecting with domestic flights or stopping in Trinidad and Tobago for more than 24 hours are not exempted

Everything You Need to Know About the Business Travel Tax Deduction

Justin is an IRS Enrolled Agent, allowing him to represent taxpayers before the IRS. He loves helping freelancers and small business owners save on taxes. He is also an attorney and works part-time with the Keeper Tax team.

You don’t have to fly first class and stay at a fancy hotel to claim travel expense tax deductions. Conferences, worksite visits, and even a change of scenery can (sometimes) qualify as business travel.

What counts as business travel?

The IRS does have a few simple guidelines for determining what counts as business travel. Your trip has to be:

• Mostly business
• An “ordinary and necessary” expense
• Someplace far away from your “tax home”

What counts as "mostly business"?

The IRS will measure your time away in days. If you spend more days doing business activities than not, your trip is considered "mostly business". Your travel days are counted as work days.

Special rules for traveling abroad

If you are traveling abroad for business purposes, you trip counts as " entirely for business " as long as you spend less than 25% of your time on personal activities (like vacationing). Your travel days count as work days.

So say you you head off to Zurich for nine days. You've got a seven-day run of conference talks, client meetings, and the travel it takes to get you there. You then tack on two days skiing on the nearby slopes.

Good news: Your trip still counts as "entirely for business." That's because two out of nine days is less than 25%.

What is an “ordinary and necessary” expense?

“Ordinary and necessary” means that the trip:

• Makes sense given your industry, and
• Was taken for the purpose of carrying out business activities

If you have a choice between two conferences — one in your hometown, and one in London — the British one wouldn’t be an ordinary and necessary expense.

What is your tax home?

A taxpayer can deduct travel expenses anytime you are traveling away from home but depending on where you work the IRS definition of “home” can get complicated.

Your tax home is often — but not always — where you live with your family (what the IRS calls your "family home"). When it comes to defining it, there are two factors to consider:

• What's your main place of business, and
• How large is your tax home

What's your main place of business?

If your main place of business is somewhere other than your family home, your tax home will be the former — where you work, not where your family lives.

For example, say you:

• Live with your family in Chicago, but
• Work in Milwaukee during the week (where you stay in hotels and eat in restaurants)

Then your tax home is Milwaukee. That's your main place of business, even if you travel back to your family home every weekend.

How large is your tax home?

In most cases, your tax home is the entire city or general area where your main place of business is located.

The “entire city” is easy to define but “general area” gets a bit tricker. For example, if you live in a rural area, then your general area may span several counties during a regular work week.

Rules for business travel

Want to check if your trip is tax-deductible? Make sure it follows these rules set by the IRS.

1. Your trip should take you away from your home base

A good rule of thumb is 100 miles. That’s about a two hour drive, or any kind of plane ride. To be able to claim all the possible travel deductions, your trip should require you to sleep somewhere that isn’t your home.

2. You should be working regular hours

In general, that means eight hours a day of work-related activity.

It’s fine to take personal time in the evenings, and you can still take weekends off. But you can’t take a half-hour call from Disneyland and call it a business trip.

Here's an example. Let’s say you’re a real estate agent living in Chicago. You travel to an industry conference in Las Vegas. You go to the conference during the day, go out in the evenings, and then stay the weekend. That’s a business trip!

3. The trip should last less than a year

Once you’ve been somewhere for over a year, you’re essentially living there. However, traveling for six months at a time is fine!

For example, say you’re a freelancer on Upwork, living in Seattle. You go down to stay with your sister in San Diego for the winter to expand your client network, and you work regular hours while you’re there. That counts as business travel.

What about digital nomads?

With the rise of remote-first workplaces, many freelancers choose to take their work with them as they travel the globe. There are a couple of requirements these expats have to meet if they want to write off travel costs.

Requirement #1: A tax home

Digital nomads have to be able to claim a particular foreign city as a tax home if they want to write off any travel expenses. You don't have to be there all the time — but it should be your professional home base when you're abroad.

For example, say you've rent a room or a studio apartment in Prague for the year. You regularly call clients and finish projects from there. You still travel a lot, for both work and play. But Prague is your tax home, so you can write off travel expenses.

Requirement #2: Some work-related reason for traveling

As long as you've got a tax home and some work-related reason for traveling, these excursion count as business trips. Plausible reasons include meeting with local clients, or attending a local conference and then extending your stay.

However, if you’re a freelance software developer working from Thailand because you like the weather, that unfortunately doesn't count as business travel.

The travel expenses you can write off

As a rule of thumb, all travel-related expenses on a business trip are tax-deductible. You can also claim meals while traveling, but be careful with entertainment expenses (like going out for drinks!).

Here are some common travel-related write-offs you can take.

🛫 All transportation

Any transportation costs are a travel tax deduction. This includes traveling by airplane, train, bus, or car. Baggage fees are deductible, and so are Uber rides to and from the airport.

Just remember: if a client is comping your airfare, or if you booked your ticket with frequent flier miles, then it isn't deductible since your cost was $0.

If you rent a car to go on a business trip, that rental is tax-deductible. If you drive your own vehicle, you can either take actual costs or use the standard mileage deduction. There's more info on that in our guide to deducting car expenses .

Hotels, motels, Airbnb stays, sublets on Craigslist, even reimbursing a friend for crashing on their couch: all of these are tax-deductible lodging expenses.

🥡 Meals while traveling

If your trip has you staying overnight — or even crashing somewhere for a few hours before you can head back — you can write off food expenses. Grabbing a burger alone or a coffee at your airport terminal counts! Even groceries and takeout are tax-deductible.

One important thing to keep in mind: You can usually deduct 50% of your meal costs. For 2021 and 2022, meals you get at restaurants are 100% tax-deductible. Go to the grocery store, though, and you’re limited to the usual 50%.

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🌐 Wi-Fi and communications

Wi-Fi — on a plane or at your hotel — is completely deductible when you’re traveling for work. This also goes for other communication expenses, like hotspots and international calls.

If you need to ship things as part of your trip — think conference booth materials or extra clothes — those expenses are also tax-deductible.

👔 Dry cleaning

Need to look your best on the trip? You can write off related expenses, like laundry charges.

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Travel expenses you can't deduct

Some travel costs may seem like no-brainers, but they're not actually tax-deductible. Here are a couple of common ones to watch our for.

The cost of bringing your child or spouse

If you bring your child or spouse on a business trip, your travel expense deductions get a little trickier. In general, the cost of bring other people on a business trip is considered personal expense — which means it's not deductible.

You can only deduct travel expenses if your child or spouse:

• Is an employee,
• Has a bona fide business purpose for traveling with you, and
• Would otherwise be allowed to deduct the travel expense on their own

Some hotel bill charges

Staying in a hotel may be required for travel purposes. That's why the room charge and taxes are deductible.

Some additional charges, though, won't qualify. Here are some examples of fees that aren't tax-deductible:

• Gym or fitness center fees
• Movie rental fees
• Game rental fees

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Where to claim travel expenses when filing your taxes

If you are self-employed, you will claim all your income tax deduction on the Schedule C. This is part of the Form 1040 that self-employed people complete ever year.

What happens if your business deductions are disallowed?

If the IRS challenges your business deduction and they are disallowed, there are potential penalties. This can happen if:

• The deduction was not legitimate and shouldn't have been claimed in the first place, or
• The deduction was legitimate, but you don't have the documentation to support it

When does the penalty come into play?

The 20% penalty is not automatic. It only applies if it allowed you to pay substantially less taxes than you normally would. In most cases, the IRS considers “substantially less” to mean you paid at least 10% less.

In practice, you would only reach this 10% threshold if the IRS disqualified a significant number of your travel deductions.

How much is the penalty?

The penalty is normally 20% of the difference between what you should have paid and what you actually paid. You also have to make up the original difference.

In total, this means you will be paying 120% of your original tax obligation: your original obligation, plus 20% penalty.

Justin W. Jones, EA, JD

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Traveling? 7 Refunds You Didn’t Realize You Could Get

T raveling can be one of the most memorable experiences , but the expense of the adventure can quickly add up. Flights, accommodations, car rentals, dining and entertaining activities are among the most expensive aspects. 

Vacation Season: 10 Essentials You Should Buy at Dollar Tree for Your Next Trip

Here: How To Get Cash Back on Your Everyday Purchases

Fortunately, there are some ways to save money on your travels by getting refunds, credits or vouchers for parts of the journey. However, many travelers need to be aware of the numerous opportunities available. This guide of seven traveling-related refunds explores some lesser-known ways to get your hard-earned cash back when you travel. Once you know what’s available, you can plan to take advantage of the opportunities (or inconveniences) as they arise.

1. International Tax Refunds on Purchases

Many countries charge a relatively high tax on purchases. For example, European countries have a value-added tax (VAT) of 21%. Sweden and parts of Brazil charge 25%. Purchasing $100 worth of souvenirs could cost you as much as $125 after taxes. 

Fortunately, you can get a tax refund on overseas purchases. However, you’ll need to know how the process works to ensure you take every step to receive the tax refund. Keep in mind that most tax refund programs require that you are a non-resident of the country you are visiting and have made purchases above a certain amount. Here are five steps:

Identify Participating Retailers

Stores typically display the tax-free shopping logo or ask the salesperson for assistance. Ask about any requirements, such as a minimum purchase amount, to be eligible for a refund. Ensure that your purchases meet this threshold to claim your money back.

Carry Your Passport When Shopping

While the common advice is to store your passport at the hotel safely, you’ll need to carry and present your passport at participating retailers to get started. Once you request the tax refund and present your passport, the retailer will print out the necessary proof of purchase to present at the airport before you leave the country, which includes your name and passport number. 

Get to the Airport a Few Minutes Early

You’ll need to visit a couple of offices for your refund before your flight, so be sure to allow yourself enough time to process the refund. Review the receipts you were given — in many cases, you may need to fill out a short form on each receipt with your name, address and signature.

Get the Forms Stamped 

Your first stop at the airport is at the customs desk. Besides showing the receipt and tax refund form, you may be asked to present your purchased goods for review, so wait to check your bags. The customs officer will stamp the forms, verifying your eligibility for a refund.

Visit the Refund Office

After customs stamp your forms, visit the tax refund office within the airport. Present your form and passport to complete the refund process. In some cases, you may be offered a cash refund on the spot, while others might provide the refund as a credit to your credit card or through another method.

2. Hotel Price Guarantees 

Hotels often promise you’ll get the best available rate when booking directly with them. If you reserve a room directly with the hotel and then find a lower rate for the same room on another website, many hotels will refund you the difference or greater.

Keep in mind that the lower rate must be for the same room type, dates and conditions. Hotel price guarantees are a straightforward way to save money and ensure you’re getting the best deal on your accommodations but they could take time and effort to achieve. Fortunately, you don’t have to waste valuable time checking on your hotel’s rates — there are apps and websites such as Rebookey that will alert you of price drops.

3. Airfare Price Drops 

Similar to hotel bookings, airline ticket prices tend to be unpredictable. Policies vary between airlines, but some carriers may refund the difference in fare or provide travel vouchers if the price of your ticket drops after you’ve purchased it. When booking, it’s worth checking with the airline to see if they have a price-drop policy, especially if you’re booking well in advance. You may be eligible for a refund or voucher.

As with hotel-rate-tracking apps, there are airfare-tracking websites and apps that do the work for you, including:

• Airfarewatchdog
• Google Flights

4. Foreign Transaction Fees

When using your credit card abroad, you may incur foreign transaction fees, which can add up to an extra 3% to overseas purchases. One way to get a refund (with no work required) is to use the right credit card when traveling internationally. To save money, consider using a travel-friendly credit card that offers foreign transaction fee reimbursements as a perk.

5. Denied Boarding Compensation 

If you’ve been bumped from a flight due to overbooking or other reasons, airlines may offer you a travel voucher as compensation. These vouchers can often be used on future flights with the same airline. While they may not be as flexible as cash refunds, they can help you save on future travel expenses. 

When faced with involuntary bumping, it’s a good idea to know your rights and negotiate compensation to maximize the amount you receive. According to the U.S. Department of Transportation (DOT), “Passengers who are denied boarding involuntarily due to over sales are entitled to compensation that is based on the price of their ticket, the length of time that they are delayed in getting to their destination because of being denied boarding and whether their flight is a domestic flight or an international flight leaving from the United States.”  

The amount depends on the delay. Short delays are eligible for “compensation equal to double the one-way price of the flight they were bumped from, but airlines may limit this amount to up to $775.” Passengers dealing with longer delays are entitled to four times the one-way value of the flight they were bumped from, with some airlines limiting the amount to a maximum of $1,550.

6. Baggage Delay or Loss Compensation

Air travel can be stressful, especially if your baggage is delayed or lost. While airlines work hard to reunite you with your luggage, they may provide compensation for the inconvenience and expenses incurred while you wait for your bags. Airlines will make good on the compensation, even if the airline eventually finds and delivers your baggage.

The amount and conditions for baggage delay compensation vary by airline, but the DOT provides guidelines. Domestic passengers can receive as much as $3,800, while international flyers are eligible for up to $1,700.

To receive reimbursement for your expenses, file a claim with the airline’s lost baggage desk when the issue arises. Keep receipts for essential items you purchase during the delay, like clothing and toiletries, to submit and get money back. 

In addition, many of the best travel credit cards offer free baggage delay compensation, which may be an additional source of cash back for the inconvenience of lost or delayed bags.

7. Free Checked Bags or Travel Allowances

As mentioned, some credit cards are designed to provide perks and benefits for frequent travelers. Select cards offer free checked bags, airport lounge access at no charge or a refund for up to a certain amount in-flight purchases such as onboard Wi-Fi or meals and drinks. Cards providing travel-related refunds or credits include:

• Alaska Airlines Visa Signature: Free checked bag or a companion ticket for just the cost of taxes
• American Express Platinum: $200 annual airline fee credit with the airline of your choice
• Chase Sapphire Reserve: Premium car rental insurance included for free
• Capital One Venture Rewards: Free access to Capital One airport lounges

Sponsored: New Chase checking customers enjoy a $200 bonus when you open a Chase Total Checking® account and set up direct deposit.

Traveling is often a memorable experience and knowing how to navigate the refund landscape can make it more affordable. While travel expenses can accumulate quickly, there are numerous refund opportunities available to savvy travelers that can help reduce the financial impact of your journey. The key is to know about them before you travel so you know what to do when the moment arises.

Baggage delay and flight disruption refunds or vouchers, hotel price guarantees or value-added tax refunds are a few ways to get part of your money back, especially in cases you’ve been inconvenienced. Take some time to review the terms and conditions of your bookings in advance to know the steps you would need to take. In many cases, communication with service providers and documenting your experiences can lead to the compensation you’re looking for. You have the right to get reimbursed or compensated for unforeseen inconveniences and unmet promises, so don’t be afraid to speak up.

By staying informed and taking advantage of these lesser-known refund opportunities, you can enhance your travel experience while keeping your wanderlust on a budget. And don’t underestimate the power of a credit card with plenty of travel perks. Some come with no annual fee or enough benefits to offset the yearly cost.

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This article originally appeared on GOBankingRates.com : Traveling? 7 Refunds You Didn’t Realize You Could Get

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Understanding business travel deductions

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IRS Tax Tip 2023-15, February 7, 2023

Whether someone travels for work once a year or once a month, figuring out travel expense tax write-offs might seem confusing. The IRS has information to help all business travelers properly claim these valuable deductions.

Here are some tax details all business travelers should know

Business travel deductions are available when employees must travel away from their  tax home  or  main place of work  for business reasons. A taxpayer is traveling away from home if they are away for longer than an ordinary day's work and they need to sleep to meet the demands of their work while away.

Travel expenses  must be ordinary and necessary. They can't be lavish, extravagant or for personal purposes.

Employers can deduct travel expenses paid or incurred during a  temporary work assignment  if the assignment length does not exceed one year.

Travel expenses for  conventions  are deductible if attendance benefits the business. There are special rules for conventions held  outside North America .

Deductible travel expenses include:

• Travel by airplane, train, bus or car between your home and your business destination.
• Fares for taxis or other types of transportation between an airport or train station and a hotel, or from a hotel to a work location.
• Shipping of baggage and sample or display material between regular and temporary work locations.
• Using a personally owned car for business.
• Lodging and  meals .
• Dry cleaning and laundry.
• Business calls and communication.
• Tips paid for services related to any of these expenses.
• Other similar ordinary and necessary expenses related to the business travel.

Self-employed individuals or farmers with travel deductions

• Those who are self-employed can deduct travel expenses on  Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship) .
• Farmers can use  Schedule F (Form 1040), Profit or Loss From Farming .

Travel deductions for the National Guard or military reserves

National Guard or military reserve servicemembers can claim a deduction for unreimbursed travel expenses paid during the  performance of their duty .

Recordkeeping

Well-organized records  make it easier to prepare a tax return. Keep records such as receipts, canceled checks and other documents that support a deduction.

Subscribe to IRS Tax Tips

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Politics latest: Keir Starmer sets out what he'll do to tackle small boat crossings - as he's asked if he'd welcome Nigel Farage to Labour

Labour leader Sir Keir Starmer sets out his party's plans to try and tackle small boat crossings if it wins power. Listen to the latest episode of the Electoral Dysfunction podcast as you scroll.

Friday 10 May 2024 12:30, UK

• Starmer says small boat crossings 'one of the greatest challenges we face' as he sets out Labour's plan to tackle problem
• Explained: What's in Labour's plan
• Darren McCaffrey: Will Labour's plan cut it with voters?
• Labour will not schedule new Rwanda flights but won't stop pre-planned departures if it wins power
• Starmer says it's 'great' to have Elphicke on board
• Electoral Dysfunction:  Jess Phillips says Elphicke defection like 'being punched in gut'
• UK exits recession | Economy 'returning to full health'
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• Live reporting by Tim Baker

In January 2023, Rishi Sunak made five promises.

Since then, he and his ministers have rarely missed an opportunity to list them. In case you haven't heard, he promised to:

• Halve inflation • Grow the economy • Reduce debt • Cut NHS waiting lists and times • Stop the boats

See below how he is doing on these goals:

The Sky News live poll tracker - collated and updated by our Data and Forensics team - aggregates various surveys to indicate how voters feel about the different political parties.

With the local elections complete, Labour is still sitting comfortably ahead, with the Tories trailing behind.

See the latest update below - and you can read more about the methodology behind the tracker  here .

We heard from Sir Keir Starmer earlier about Labour's plan to deal with small boat crossings.

But what exactly does the opposition say it will do?

Well, according to their announcement, Sir Keir Starmer wants to:

• Introduce a "Border Security Command" with "counter-terror powers" - which they hope will be headed up by a former police, military or intelligence chief, reporting to the home secretary;
• An ending of the Rwanda scheme - although existing planes will not be cancelled. Sir Keir described the scheme as a "gimmick" and that it doesn't work as a deterrent;
• £75m from the Rwanda plan will be put into Labour's plans in the first year, as they direct funds earmarked from the government's plans in to their own;
• Hiring hundreds of "special investigators,intelligence agents and cross-border police officers". They will work alongside agencies like the National Crime Agency, MI5, Border Force, Crown Prosecution Service and Immigration Enforcement;
• Powers like stop and search, financial and property investigating, and "tough" civil orders will be given to border officers.

Home Secretary James Cleverly is quick out of the gates with a response to Sir Keir Starmer's speech on migration this morning.

In a statement, Mr Cleverly says: "Labour have no plan to stop the boats. 

"Labour have an illegal immigration amnesty, Labour blocked of the deportation of violent sexual offenders and Labour voted over 130 times against tougher legislation to stop the boats. 

"They will create a haven for criminal gangs, not stop them. Even Labour MPs are saying Labour can't be trusted to stop the boats which shows you nothing will change.

"If people can apply for asylum from outside the UK then unlimited claims can be made, many of which will have to be accepted under the law and even then, many of those declined will then get on a small boat anyway.

"Labour's announcement would make the UK the asylum capital of the world."

Sky political editor Beth Rigby was in the room as Sir Keir Starmer gave his speech on small boat crossings.

The Labour leader didn't offer the highest level of clarity when asked if his party would stop all flights to Rwanda if it enters government.

Beth tells us: "As I understand it, Labour's position is that they will not schedule any more new flights - no flights scheduled from a Labour government. 

"But if they were some flights already in the system that were scheduled, as I understand it, they wouldn't cancel them."

This would see Labour effectively "winding down the scheme".

"So for all intents and purposes, when he says he wants to scrap the scheme, Labour really do intend to do that pretty much from the get-go if they win a general election," Beth says. 

While Labour leader Sir Keir was speaking, Sky News observed a number of people who tried to cross the Channel in small boats arriving in Dover.

At least 70 migrants were seen arriving in the UK aboard a Border Force boat. 

Sky News understands they were picked up in the Channel and at least one child was among the group.

Sir Keir Starmer is emphatic when asked about the bringing people back from Rwanda if he becomes prime minister.

The Labour leader says he is going to scrap the Rwanda scheme - but also that he is "not interested in repatriating people, bringing people back".

Asked about whether he will forge a closer relationship with Europe, the Labour leader says he does think the UK and the EU should have a security agreement, which allows for the exchange of data and intelligence.

Asked if he would welcome all disaffected Tory MPs into the party, Sir Keir quips that it would be a "long list".

He adds that he wants to "people who don't traditionally vote for the Labour Party" to support him.

Asked if he has a plan to deter people, Sir Keir says his primary goal is to stop the people smuggling gangs.

He says that saying a deterrence like Rwanda works is not borne out by the evidence, saying that crossings have increased since the government passed the Safety of Rwanda Act.

Sir Keir is also pressed on whether he would return people to Syria or Afghanistan.

The Labour leader says many people come to the UK from countries like India and Bangladesh, and they are easy to return.

Afghanistan and Syria are different due to safety concerns - and he says this is why specific schemes are put in place.

Sir Keir says there does need to be some form of returns agreement made with the EU after the ending of the Dublin agreement.

But he says this will not involve joining the EU's current scheme.

Asked about the ECHR, a piece of legislation that several Conservatives want axed, Sir Keir says it's a "mistake" to point to the convention.

He says the issue is with the asylum system instead, as there are 100,000 people who arrived in the UK and not had their asylum claim processed, which is a bigger bottleneck.

Sir Keir brands this the "Travelodge amnesty" - and that it's not something the ECHR is a limiting factor on.

The BBC follows up on Sky's question - asking if no flights will take off if Sir Keir is in Number 10.

The Labour leader says his party "won't operate the policy" as he doesn't think it will work.

And he says he will get rid of the policy "straight away" when asked for a third time about flights by another journalist.

Responding to concerns about Natalie Elphicke joining the Labour Party - like those raised by Jess Phillips - Sir Keir says the event was "very important and significant".

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