Is my travel insurance tax deductible?


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Bank Yogi's Answer: Yes, but not always. However there are not only ways to make it tax deductible but also get it for free.

Requirements for Travel Insurance to be Tax Deductible

According to the tax accountants and lawyers Travel Insurance and Travel Health Insurance plans can be tax deductible if one the following tests are met:

1. The travel is business related if you are self-employed or own a business.
2. The travel is work related if you employed by someone else. Yes, Employees can get a deduction too.

If you are employed, then most likely your employer will provide you the insurance so that you don't have to get through the trouble of claiming a tax deduction. However, it is very well possible that your employer may not buy you a travel policy. In that case you can buy your own insurance policy and then claim that as a deduction under the category of un-reimbursed expense by the employer. Any other insurance related co-pays can also be deducted.

The qualified business trips not only include client meetings, but also seminars, industry promo events, conferences, partnership meetings and remote office collaboration meetings.

Tips For Making Travel Insurance For Your Vacation Tax Deductible

To satisfy the requirement that the policy was purchased to cover a business related travel, you may consider attending a seminar or two while on the vacation. This way if not all you can deduct at least some part of the travel insurance plan. But you have to make sure that you have a solid documentation to prove that expenses were related to the business. Also you will need to make sure that the cost of seminar is not more than the insurance premium.

How to get Travel Insurance for Free?

After all Bank Yogi's slogan is Never Buy Insurance Again! And yes, we mean it even when it comes to down to Travel Insurance. With the Bank Yogi mobile app you can get Free Car Rental Insurance and Travel Insurance. This also includes Baggage Delay & Loss Insurance, Travel Health Insurance and Emergency Cash Assistance for overseas travel. Most of the American Express, MasterCard and Visa Credit Cards provide free insurance as part of the benefits package. This includes both personal and business credit cards. For example, American Express is known for its car rental insurance and MasterCard for its comprehensive travel insurance package. Even if you have purchased travel insurance any out of pocket expenses including deductibles can be reimbursed. This doesn't include the insurance premium. You can determine if you are eligible for these apps by simply downloading the Bank Yogi mobile app.