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posted Jun 4, 2019 11:04:14 PM

I live in MN, I worked in IL. My permanent assignment ended, June 30 but was moved to a temp assignment also in IL. Can I deduct miles and living expenses from temp role?

The Perm assignment had been over a year and I was given some relocation expenses. I did not receive anything for the temp assignment that happened to be in same state from July 1-Sept 12.

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1 Best answer
Expert Alumni
Jun 4, 2019 11:04:15 PM

Yes.  You are allowed to deduct the traveling expenses for your temporary assignment.  There is excellent information on this subject in the following link:  Publication 463 (detailed but very good information).  Here is where you will claim these expenses, according to this FAQ:  https://ttlc.intuit.com/replies/3300652

This FAQ shows where to enter these expenses in TurboTax:  https://ttlc.intuit.com/replies/4800418

I also wanted to comment your state situation.  While your tax home is Illinois since you have a permanent assignment there, your domicile home remains Minnesota.  This means you file a Minnesota resident return.  Minnesota has a reciprocal agreement with Illinois that you are only taxed where you live, in this case Minnesota.  If Illinois tax was withheld, you will file an Illinois nonresident reciprocal return to have these taxes refunded, but then you will use the refund to pay any Minnesota tax due.   You may file a form with your employer to have only MN tax taken out in the future.

If no Illinois tax was withheld, however.  you will not need to file an Illinois return at all.  Here is another FAQ on reciprocal states:  https://ttlc.intuit.com/replies/4776822

1 Replies
Expert Alumni
Jun 4, 2019 11:04:15 PM

Yes.  You are allowed to deduct the traveling expenses for your temporary assignment.  There is excellent information on this subject in the following link:  Publication 463 (detailed but very good information).  Here is where you will claim these expenses, according to this FAQ:  https://ttlc.intuit.com/replies/3300652

This FAQ shows where to enter these expenses in TurboTax:  https://ttlc.intuit.com/replies/4800418

I also wanted to comment your state situation.  While your tax home is Illinois since you have a permanent assignment there, your domicile home remains Minnesota.  This means you file a Minnesota resident return.  Minnesota has a reciprocal agreement with Illinois that you are only taxed where you live, in this case Minnesota.  If Illinois tax was withheld, you will file an Illinois nonresident reciprocal return to have these taxes refunded, but then you will use the refund to pay any Minnesota tax due.   You may file a form with your employer to have only MN tax taken out in the future.

If no Illinois tax was withheld, however.  you will not need to file an Illinois return at all.  Here is another FAQ on reciprocal states:  https://ttlc.intuit.com/replies/4776822