If you incur toll expenses while conducting business for your employer or you are self-employed and incur toll expenses while conducting business for your own company, you may be able to deduct the cost of tolls on your federal tax return.
Eligible Employee Tolls
If you are an employee and conduct business for your employer away from your main office location, you can deduct tolls incurred between your main office location and your business destination. You cannot deduct tolls incurred commuting from your home to your main office location or from your home to a second regular job location. If you are required to work at a temporary job location for limited amount of time, you can deduct tolls from your home to the temporary work location.
Self-employed with Remote Office
If you are self-employed and maintain a remote office location, you cannot deduct tolls incurred between your home and the remote office location. Tolls incurred between your remote office location and another business destination, such as a client's office, are deductible business expenses. If you need to conduct work at the temporary job location for a limited amount of time, you can deduct the tolls incurred from your home to the temporary work location.
Self-employed with Home Office
If your main office for your business is in your home, you can deduct all tolls incurred between your home and any business destination. If you do not maintain a home office or a remote office, you cannot deduct tolls between your home and your first business destination; however, you can deduct tolls from your first business destination to all other business destinations.
Reporting the Expense
If you are self-employed, you report the tolls as car and truck expense on Schedule C. Because it is not always possible to obtain a receipt for a toll, you should maintain a log of every business destination, the date of the trip, reason for the trip and the amount of tolls incurred. For employees conducting business for the benefit of their employer, deduct tolls and other transportation expense on Schedule A in the unreimbursed employee expense line of the form. Schedule A contains itemized deductions, so if your other itemized deductions do not exceed the standard deduction, it does not benefit you to file Schedule A.