@already gone,
If you are on a non-per diem project away from your primary residence, none of your expenses are deductible???
Either away from your tax "home" or "residence", away expenses are always deductible if you are not not receiving PD.
Quote from: djdroc on Sep 13, 2010, 09:31
I'm a nukeworker who regularly travels away from home on temp assignments running anywhere from 2 wks to 3 mos and often a min of 75 miles away. I drive to each location, paying out of pocket for meals/lodging and receiving no per diem for either. I haven't been the best with keeping up with all my receipts. For simplicity, can I take a tax deduction for lodging and meals using the fed per diem rates? If not both, is it true that I can deduct actual lodging exps and take a standard meal deduction using the fed per diem meal rates instead?
Actual lodging expenses and the Federal per diem for meals.
This assumes that you have a tax home vs a permanent residence as those two things are different
Joseph Smith EA/MS Tax
Enrolled Agent, Admitted to Practice Before the IRS
TravelTax LLC
The Mobile Professional Tax Specialists
www.traveltax.comjsmith@traveltax.com
866.272.7871
Joe Smith should add clarification.
Permanent Tax Residence Declaration
The IRS requires that you pay taxes on housing benefits and travel expense reimbursements, unless you maintain a permanent residence while on a temporary assignment. If you qualify for permanent tax home exemption, we are required to keep your Permanent Tax Home Address on file.
Consult your tax advisor regarding tax liability of housing and travel benefits and permanent tax residence.
IRS criteria used to determine your tax home residence is as follows:
• You must meet at least one of the following criteria:
a) You lived at your permanent tax residence immediately prior to your current assignment, or
b) You have a family member utilizing the residence, or you utilized this residence frequently for purpose of your own lodging.
• There must be a realistic expectation that you will return to & live at your home; and
a) Your tax home must be separate and distinct from your temporary address; and
b) You pay to maintain your permanent tax residence while you are on assignment (i.e. mortgage, rent, room and board).
• The Permanent Tax Residence must be:
a) Habitable living quarters at least 50 miles away from your temporary residence; and
b) Payments to maintain your permanent tax residence must be real and substantial.
Please be advised, the IRS considers employment away from your home in a single location that exceeds or may exceed one year, to be indefinite, not temporary and
therefore housing and travel benefits would be subject to withholding.
Aren't TN and FL state income tax exempt?
BA
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