Can I deduct the Foreign Per Diem Rates from my Fulbright income for federal and state taxes. I'm on Fulbright overseas. I'm aware of the IRS publication on Fulbright.

[Critter]

No & No 

https://www.irs.gov/individuals/international-taxpayers/fulbright-grants

[yalnouti]

Yes, I'm aware of this link and my Fulbright income is considered wages.  I will be outside the country for <1 year, so i should qualify for business expenses deductions on federal, but was not sure about the state!?

[taxmelonghard]

I have this same question. The page linked says that:

"If your tax home is in the United States, and you are temporarily in a foreign country away from your tax home in the USA for less than 1 year, then you may be able to deduct your airfare, local transportation, lodging, and food expense as itemized deductions reported on Form 2106, Employee Business Expenses (or Form 2106-EZ) and Schedule A of Form 1040." 

But how do I calculate how much I can exclude? And "exclude" is weird, right? Doesn't it mean deduct?

Can I use the M&I value from the state department? Even if I had family with me, I'm the only qualifying individual, right? Can I use the Lodging figure instead of including the cost of my rent?

Thanks to anyone that can help clarify this!