Deductible expenses for internship

[4sters]

My wife worked a summer internship that required her to live away from home, in the same state, through the week and some weekends. She paid a small amount for rent and also paid for all meals through the week(s). She was paid a stipend for the internship on a 1099-NEC. Can any of her rent, food or travel expenses be deducted?

[CesarJ]

It depends. For an internship paid on a 1099-NEC, expenses must meet IRS rules for business deductions. Your wife is considered self-employed for tax purposes since she received a 1099-NEC.

Rent: Rent for housing is generally not deductible as a business expense unless it is directly related to a business office or workspace. Rent paid just for living expenses during the internship usually isn't deductible.

Meals: Meals during business travel are deductible at 50% but only if the travel requires an overnight stay and is away from the tax home. Meals she paid for while living away could qualify if the internship location is considered away from her tax home.

Travel: Travel expenses to and from the internship may be deductible if the location qualifies as away from her tax home and the assignment is temporary (one year or less). Regular commuting expenses within the same area usually aren't deductible.

In summary, rent is unlikely deductible; meals and travel may be deductible but only if the IRS rules about tax home, overnight travel, and temporary assignments are met. Keep detailed records of all expenses.