Is the Cost of a US Passport Tax Deductible?

Is the Cost of a US Passport Tax Deductible?
Americans usually apply for a passport at their local post office.

Considerations

According to the U.S. Department of State, an adult passport book costs $135 for both the application fee and execution fee as of November 2013. The renewal of an adult passport book costs $110. With a passport deduction, eligible filers can reduce the amount of their income that the IRS can tax. When a U.S. citizen applies for a passport at his local U.S. Postal Service branch, he should keep his payment receipt to prove his expense to the IRS in the event of an audit.

Employees

If an employer does not compensate an employee for a passport needed strictly for business travel, the employee can deduct his passport registration and renewal fees. The IRS limits employee business expenses to a maximum of 2 percent of a tax filer's income. If a filer exceeds this limit due to other deductions, he cannot deduct his passport expenses.

Self-employed

According to the IRS, self-employed taxpayers can deduct 100 percent of U.S. passport registration and renewal fees if they only use their passport for business purposes. If an individual uses her passport for business part of the time, she can only take a partial deduction. The IRS does not set a maximum limit on how many deductions a sole proprietor can claim on business expenses.

Filing

Employees can take a deduction for passport fees on Line 4 of IRS Form 2106, titled Employee Business Expenses. In addition, workers must list their total employee business expense deductions on Schedule A of Form 1040. Employees must attach both Schedule A and Form 2106 to their annual Form 1040 tax return. Self-employed taxpayers need to fill out Schedule C of IRS Form 1040 to claim business expenses. They must list their passport fees on Line 24a and attach Schedule C to their Form 1040 tax return.