Leaving IA for 1 year temp assgnmnt for work. I will sell my IA house, but return to IA in 1 year and buy another. Can I still deduct housing for the 1 year I am in CO?

Forum|Forum|7 years ago
June 6, 2019
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It makes no difference whether you sell your house or not. If you are working at an assignment that is expected to last, and does last, for 1 year, or less than a year, your housing during that year is deductible as a job-related expense for a W-2 employee. You would enter this under Job-related expenses for Schedule A.

Job related expenses are entered in total and then 2% of your adjusted Gross Income is subtracted to arrive at the deductible amount. In order to use this itemized deduction, your total itemized deductions, must exceed your standard deduction. If you are paying AMT( Alternative Minimum Tax), this deductible amount will be added back to your income and thus would have no net effect on your tax.

You may also deduct other living costs such as food while working away from home and trips back to your old home, but you cannot deduct the cost of traveling from your temporary home to and from the job

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It makes no difference whether you sell your house or not. If you are working at an assignment that is expected to last, and does last, for 1 year, or less than a year, your housing during that year is deductible as a job-related expense for a W-2 employee. You would enter this under Job-related expenses for Schedule A.

Job related expenses are entered in total and then 2% of your adjusted Gross Income is subtracted to arrive at the deductible amount. In order to use this itemized deduction, your total itemized deductions, must exceed your standard deduction. If you are paying AMT( Alternative Minimum Tax), this deductible amount will be added back to your income and thus would have no net effect on your tax.

You may also deduct other living costs such as food while working away from home and trips back to your old home, but you cannot deduct the cost of traveling from your temporary home to and from the job