topic Can I deduct rent paid while working in another state if my primary address is in another in Investors & landlords

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

bakerbabe76 — Sat, 21 Feb 2026 18:17:23 GMT

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

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

xmasbaby0 — Sat, 21 Feb 2026 18:21:08 GMT

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.

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

Mike9241 — Sat, 21 Feb 2026 18:21:39 GMT

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

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

MindyB — Sat, 21 Feb 2026 18:23:48 GMT

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.