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Can I deduct rent paid while working in another state if my primary address is in another

Do travel work. Primary residence in one state, work in another
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3 Replies

Can I deduct rent paid while working in another state if my primary address is in another

If you are a W-2 employee----sorry, no you cannot deduct rent as a job-related expense on a federal tax return.

 

W-2 employees cannot deduct job-related expenses on a federal return.  Job-related expenses were eliminated as a federal deduction for W-2 employees by the tax laws that changed for 2018 and beyond.  Your state tax laws might be different in AL, AR, CA, HI, MN, NY or PA.

 

 

If you are preparing a return for a state that lets you deduct job-related expenses, the information will flow from your federal return  to the state return, so enter it in Federal>Deductions and Credits>Employment Expenses>Job-Related Expenses

 

 

 

Or....are you an independent contractor?   If you are self-employed then post back for further help.

 

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Can I deduct rent paid while working in another state if my primary address is in another

if you're an employee, the answer is no. if you're an independent contractor certain rules must be met. 

Review IRS PUB 463. currently it seems the iRS has not issued a 2025 version so here's a link to 2024.

https://www.irs.gov/pub/irs-pdf/p463.pdf 

MindyB
Employee Tax Expert

Can I deduct rent paid while working in another state if my primary address is in another

Whether you can deduct rent depends primarily on your employment status and the duration of your assignment. 

 

If you are a self-employed on a temporary assignment lasting less than one year, you can generally deduct rent as a business travel expense on Schedule C. 

 

However, if you are a W-2 employee, current federal law typically prevents you from deducting unreimbursed employee business expenses. 

 

To qualify, you must also maintain a "tax home" in your primary state and show that your living expenses are being duplicated. If your work assignment in the second state is expected to last longer than one year, it is considered "indefinite," and your rent becomes a non-deductible personal expense.

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