1099-Nec

[Mp75]

My primary home is in New Jersey but I am an independent contractor in Virginia. Is my rent tax deductible? I paid rent for nine months in 2023. 

[AnnetteB6 · Accepted solution]

My understanding of your question is that you maintain a primary residence in New Jersey, but as an independent contractor you worked in Virginia for nine months in 2023.  While in Virginia, you paid rent for a place to live and you want to know if that rent is deductible as a business expense.

Given the assumption above, the answer would be no, the rent is not deductible.  A self-employed business owner may deduct travel expenses (including lodging) when they must travel overnight away from their tax home.  The key is where your tax home is located.  For you, since your work was performed in Virginia, then Virginia is considered to be your tax home regardless of having a primary home in New Jersey.  

Since your work was performed in Virginia, your rent expenses are considered ordinary living expenses instead of business travel expense.

To learn more, take a look at the IRS Instructions for Schedule C, specifically line 24a.  

Also see Topic no. 511, Business travel expenses.