Travel Days: Counting State Visits And Their Benefits

what state to count travel day

The number of travel days is important for various reasons, including tax residency, immigration, and travel planning. For example, certain countries have specific requirements for establishing tax residency, such as the UK's Statutory Residence Test or the US Substantial Presence Test. In the context of immigration, applicants for naturalization may be required to list their travel history, including the number of days spent outside their country of residence. When it comes to travel planning, counting travel days is crucial for making the most of your trip and ensuring it adheres to any relevant regulations. For instance, when using a rail pass, understanding the number of travel days available can help determine whether a consecutive or flexi pass is more suitable.

Characteristics Values
Rail pass travel days From midnight to midnight
Determining tax residency Counting days or nights spent in a specific country
US residency Must be in the US for 31 days in the current year and no more than 183 days over the past 3 years
UK residency Count nights (location at midnight)
Schengen Travel Area 90 days in a rolling 180-day period

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Counting travel days for tax residency

Counting travel days is essential for determining tax residency, which is a critical component of an individual's overall tax burden. The number of days spent in a country is one of the most important factors in determining tax residency, with many countries using a 183-day threshold to define tax residency. This is because 183 days represent more than half of the calendar year.

In the United States, the Internal Revenue Service (IRS) uses a "substantial presence test" to determine tax residency for those who are neither citizens nor permanent residents. This test considers an individual's physical presence in the current year and the two preceding years. To meet the criteria, one must be physically present in the US for at least 31 days in the current year and 183 days over the three-year period, including all days in the current year, a third of the days from the previous year, and a sixth of the days from the year before that.

Some days are exempt from being counted as days of presence in the US for the substantial presence test. These include days spent commuting to work in the US from Canada or Mexico if done regularly, days spent in the US for less than 24 hours while in transit between two other countries, days as a crew member of a foreign vessel, and days when an individual is unable to leave the US due to a medical condition that develops during their stay. Additionally, certain exempt individuals, such as foreign government-related persons under specific visas, teachers, trainees, students, and professional athletes competing for charity, are excluded from the day count.

It is important to note that the substantial presence test is not the sole criterion for determining tax residency in the US. The IRS also considers an individual's connections or "ties" to the US, including their presence relative to any other country.

Other countries have different criteria for determining tax residency. For example, Switzerland considers an individual a tax resident after 90 days, while the UK uses a "Statutory Residence Test" that examines factors such as the number of days present, accommodation accessibility, and work status.

To ensure accurate tracking of travel days for tax residency purposes, individuals can utilise residency travel tracking apps, such as TrackingDays, which automatically logs days spent in various countries, making it easier to establish residency or non-residency status.

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Counting travel days for US citizenship

To become a US citizen through naturalisation, an applicant must have resided continuously in the US for at least five years prior to filing their application and up to the time of naturalisation. They must also have lived in the state or service district having jurisdiction over the application for at least three months prior to filing. This is known as the 'continuous residence' requirement.

The 'continuous residence' requirement involves the applicant maintaining a permanent dwelling place in the US over the period of time required by the statute. The residence in question is the same as the applicant's domicile or principal actual dwelling place, without regard to their intent. The duration of an applicant's residence in a particular location is measured from the moment they first establish residence there.

US Citizenship and Immigration Services (USCIS) will count the day that an applicant departs from the US and the day they return as days of physical presence within the country for naturalisation purposes. However, an applicant's absence from the US for more than six months but less than a year during the period for which continuous residence is required is presumed to break the continuity of such residence. An absence of one year or more will automatically break the continuity of residence.

To avoid any issues, it is recommended that applicants avoid any single trip outside the US that lasts six months or longer, and any cumulative trips that add up to at least half of the required residence period (30 months for a five-year permanent resident or 18 months for a three-year permanent resident married to a US citizen).

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Counting travel days for rail passes

Rail passes are a cost-effective way to cover train travel within a designated area or areas for a set period. When counting travel days for rail passes, it's important to understand the different types of passes and their terms of use.

Continuous Pass vs. Flexipass

There are two main types of rail passes when it comes to counting travel days: the continuous pass and the flexipass. A continuous pass counts each day or month consecutively. For example, a 15-day continuous pass is valid for 15 calendar days in a row, starting from the day of validation. Similarly, a one-month continuous pass is valid for a calendar month, which could be 28, 29, or 30 days, depending on the month. This type of pass is ideal for travellers who plan to use the train every day during their trip.

On the other hand, a flexipass offers more flexibility. With a flexipass, you only pay for the days you choose to travel within a specified period. For instance, with a ten-day-in-one-month flexipass, you can select any ten days within a month to use your pass. This option is perfect for travellers who do not need to take the train every day. Typically, you would need to fill in the date of travel on the pass before boarding the train.

Country Pass vs. Cross-Country Pass

Rail passes are also available as country passes or cross-country passes. Country passes allow you to take most trains within a single country, such as the BritRail Pass for the United Kingdom or the Japan Rail Pass. Cross-country passes, like the Eurail pass or Interrail pass, let you travel on trains within multiple designated countries, even when crossing borders. However, be aware that if your train passes through areas where your pass is not valid, you may need to pay for that specific section of your journey.

Other Considerations

Some countries offer concession passes for youths or the elderly, as well as group passes for two or more people travelling together at a discounted rate. Rail passes may also have restrictions on the types of trains you can ride, such as excluding high-speed trains or requiring a supplement for certain train services. Additionally, some passes allow for free travel on sleeper or couchette trains, while others may require an extra fee or restrict these services altogether.

When it comes to seat reservations, some rail passes include this option for free, while others may require a supplement. As rail passes are typically targeted at tourists, some sightseeing spots may offer bonus discounts upon presenting a valid rail pass.

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Counting travel days for employee work hours

Whether travel days count as work hours depends on the employee's status under the Fair Labor Standards Act (FLSA). For FLSA-exempt employees, the crediting of travel time as work hours is governed by title 5 rules. For FLSA-covered employees, travel time is credited if it is deemed to be qualifying hours of work under either the title 5 rules or the OPM's FLSA regulations.

Travel That is Hours of Work Under Title 5

Under title 5 rules, official travel away from an employee's official duty station is counted as hours of work if the travel is within the days and hours of the employee's regularly scheduled administrative workweek, including regularly scheduled overtime hours. If the travel is outside the hours of the employee's regularly scheduled workweek, it may still be counted as work hours if it is ordered or approved and meets one of the following four conditions:

  • The employee performs work while traveling (e.g., driving a loaded truck)
  • The travel is incidental to the performance of work (e.g., driving an empty truck back to the point of origin)
  • The travel is carried out under arduous and unusual conditions (e.g., travel on rough terrain or under extremely severe weather conditions)
  • The travel results from an event that could not be scheduled or controlled by any individual or agency in the executive branch of the government (e.g., training scheduled solely by a private firm)

Travel That is Hours of Work Under the FLSA

For FLSA-covered employees, time spent traveling is counted as work hours if:

  • The employee is required to travel during regular working hours (during the regularly scheduled administrative workweek)
  • The employee is required to work during travel (e.g., driving a government vehicle as part of a work assignment)
  • The employee is required to travel as a passenger on a one-day assignment away from the official duty station
  • The employee is required to travel as a passenger on an overnight assignment away from the official duty station during hours on non-workdays that correspond to the employee's regular working hours

Official Duty Station and Administrative Workweek

An "official duty station" is defined by the relevant legislation and typically refers to a location within a 50-mile radius of an employee's workplace. An "administrative workweek" is a period of seven consecutive calendar days designated in advance by the head of an agency, within which the employee is scheduled to work.

Commuting Time

For both FLSA-covered and FLSA-exempt employees, normal commuting time from home to work and from work to home is generally not considered hours of work. However, commuting time may be counted as work hours if the employee is required to perform substantial work under the direction of the employer during the commute.

Examples of Travel Time as Hours of Work

  • A courier's travel to pick up and deliver a pouch
  • A motor vehicle operator who travels by plane to take responsibility for a truck and then delivers it to its permanent location
  • An employee who travels to an event that could not be scheduled or controlled by the agency, such as a meeting arranged by two federal agencies

Non-Compensable Travel

Managers have the authority to schedule non-compensable official travel. In such cases, the manager must record the reasons for ordering such travel in a memo, which should be filed with the employee's Time and Attendance Report (T&A).

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Counting travel days for tax deductions

To qualify as a business trip, the primary purpose of the trip must be for business. Additionally, the trip should meet the following criteria:

  • Leaving Your Tax Home: Your tax home is typically the city or area where your main business or work is located. A business trip involves travelling away from this area for longer than a regular workday, and you may need to sleep or rest to meet work demands.
  • Majority of Days Spent on Business: The trip should consist mostly of business activities. Travel days to and from the destination are usually counted as work days.
  • Ordinary and Necessary Expenses: Expenses must be "ordinary and necessary" for your business or industry. This means they are common and accepted in your field and help facilitate business activities.
  • Advance Planning: The trip should be planned in advance, with a clear business purpose and documentation to support the trip's nature.

International Travel:

When travelling internationally, different rules may apply. If your trip is outside the United States for more than a week (seven consecutive days), you must spend at least 75% of your time on business for the entire trip to qualify as a business trip. If you spend less than 75% of your time on business, you can still deduct travel costs proportionally to your business days.

Deductible Travel Expenses:

Deductible travel expenses may include:

  • Transportation costs between your home and business destination, including plane, train, bus, or car expenses.
  • Taxi or other transportation fares between the airport/station and your hotel, as well as to and from business meetings or client locations.
  • Shipping costs for baggage and business materials.
  • Car expenses, including actual costs or the standard mileage rate, tolls, and parking fees.
  • Lodging and non-entertainment meals.
  • Dry cleaning and laundry.
  • Business calls and communication expenses.
  • Tips for related services.
  • Other similar ordinary and necessary expenses, such as public stenographer's fees or computer rental fees.

Record-Keeping:

It is essential to maintain good records of your travel expenses. Keep track of all receipts, mileage, and document the business purpose of each expense. This will help you substantiate your deductions and provide evidence in case of an audit.

Where to Claim Deductions:

If you are self-employed, you can claim travel expense deductions on Schedule C (Form 1040) or Schedule F (Form 1040) for farmers. There are specific forms and guidelines provided by the IRS to help you accurately report and deduct these expenses.

Frequently asked questions

When traveling with a rail pass, you will have a specific number of days when you can travel by train. To count the number of travel days you require for your rail pass, first look at your itinerary and check how many travel days you have and whether you are moving from place to place almost daily or have more time between each destination. This will help you determine if a Consecutive Pass or a Flexi Pass is more suitable for you.

Form N-400, Application for Naturalization, requires applicants to list each trip of 24 hours or more that was made outside the United States over the previous five years. Include any trip (including visits to Canada, Mexico, and the Caribbean) that lasted 24 hours or longer. Next, enter the dates of the trip and determine the number of days you spent outside the U.S. during each absence.

People looking to establish tax residence or non-residence need to count the days or nights they spend in a specific country. For example, in the UK, you need to count nights (your location at midnight) and in the US, you need to count days.

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