Yes, you could deduct these expenses when working on a "temporary
assignment" if you qualify. Things that aren't normally deductible when you're living
at home, become deductible because you are out of town on business.
The main
rule is that these are travel expenses incurred are for an extended business
trip or temporary work assignment that was intended to last one year or
less. The expenses may only be claimed for a stay for business.
Temporary
living expenses include hotel lodging (or apartment rent for longer stays),
meals, and local transportation. Meals may be estimated using federal per
diem rates.
See the
info below for details. See this
link for expenses you can deduct.
Follow these steps:
- Click Federal Taxes
- Click Deductions & Credits
- Click View All Tax Breaks
- Click Employment Expenses and
(Start or Edit)
- Your Temporary Assignment expenses will go under Travel
Temporary Assignment: The IRS states
that if you expect your employment away from home in a single location to last,
and it does last, for 1 year or less, it is temporary unless facts and
circumstances indicate otherwise. If you expect it to last for more than
1 year, it is indefinite. However,
if you expect your employment away from home to last for 1 year or less, but at
some later date you expect it to last longer than 1 year, it is temporary (in
the absence of facts and circumstances indicating otherwise) until your
expectation changes. Starting with the date your expectation changes,
travel expenses will no longer be deductible. (IRS Publication 54, page
12). What determines a temporary versus an indefinite assignment is the
intent of the taxpayer. If assignment contracts can be made to last a
year or less, this makes it much easier to document and support the position
that your job was temporary in the uncommon event of an audit (see below).
Going home on days off. If you go back to your tax home from a temporary assignment on your days off, you aren’t considered away from home while you are in your hometown. You can’t deduct the cost of your meals and lodging there. However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work.
If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. In addition, you can deduct your expenses of returning home up to the amount you would have spent for meals had you stayed at your temporary place of work.
