Can I deduct expenses ... HOR is Texas 32 yrs ... worked in Arizona for company ... can I deduct rent, utilities, expenses while on assignment in Arizona for 11 mos?
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Can I deduct expenses ... HOR is Texas 32 yrs ... worked in Arizona for company ... can I deduct rent, utilities, expenses while on assignment in Arizona for 11 mos?

 
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Level 4

Can I deduct expenses ... HOR is Texas 32 yrs ... worked in Arizona for company ... can I deduct rent, utilities, expenses while on assignment in Arizona for 11 mos?

No, you can not deduct rent, utilities, expenses while on assignment in Arizona.  These expenses are considered normal living expenses and not business expenses. 

Generally,  Per Diem is not considered to be non-taxable income there are two methods of accounting for Per Diem

  • Accountable Plan: a plan where the employee is required to adequately account for any expenses that were used on his or her business trip.  Any money issued by the employer that was not spent or cannot be accounted for is required to be repaid back to them.  If you spent the entire Per Diem and you use your own funds to account for business expenses, then the amount that you personally spent will be reported on Form 2106.

  • Non-Accountable Plan: a plan where the employee is not required to provide proof of expenses that were used.  The employer will issue the Per Diem amount to the employee.  If the entire Per Diem was not used, then the employee may keep the remaining portion.  If the employee used more than the Per Diem allowance, then the remaining portion can be deducted on Form 2106.  The employer will report the total in box 1 as wages on the Form W-2 if there is any reimbursement or other expense allowance paid to the taxpayer.

[Edited 03/26/2019 | 1:10 pm PDT]

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Can I deduct expenses ... HOR is Texas 32 yrs ... worked in Arizona for company ... can I deduct rent, utilities, expenses while on assignment in Arizona for 11 mos?

So I must continue to pay my permanent residence expenses and incur the cost to work out of state on a temporary basis. Well that means no more travel to work for me ... i pay taxes on the per diem at 35% and every penny is spent  on living at temporary location to live and certainly not in the type of accommodations that my four bedroom 2000 sq ft home provides.
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Level 4

Can I deduct expenses ... HOR is Texas 32 yrs ... worked in Arizona for company ... can I deduct rent, utilities, expenses while on assignment in Arizona for 11 mos?

You may want to check with your employer as to why your Per Diem is being reported as taxable.  Per diem payments provide reimbursement to employees who travel for business purposes. ... As long as your payments do not exceed the maximum federal per diem rate, they are non-taxable; if per diem payments exceed federal limits, any excess will be taxed as ordinary income.
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Level 4

Can I deduct expenses ... HOR is Texas 32 yrs ... worked in Arizona for company ... can I deduct rent, utilities, expenses while on assignment in Arizona for 11 mos?

I have updated my answer to include the tax treatment of Per Diem.
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