I just accepted a temporary work assignment (expected to last 8-11 months) that is 100 miles away from my home. Am I eligible to deduct the cost of an apartment and food?

[Carl]

Are you a W-2 employee for this? If yes, then W-2 work related expenses are no longer deductible.

[mkcannova]

I am a W-2 employee. I guess I just was not sure if it would be covered under the temporary work assignment, since it would be less than a year. So thank you for your time and information!

[Carl]

If possible, you might check into working something with the employer where they will provide you temp lodging. If done under an accountable plan, the cost/value of such would not be taxable income to you.

[TaxGuyBill]

I agree with Carl, negotiate with your employer to pay for the expenses under an Accountable Plan.  You can even accept a lower amount of pay in exchange for the employer paying for things, and BOTH you and the employer will save taxes.

For example, let's say your regular pay is $50,000 and the cost of apartment and food is $10,000.  You could negotiate with your employer to pay you $40,000 PLUS reimburse that $10,000 of expenses under an Accountable Plan.  The net result will sort-of be the same for both you and your employer (the employer pays $50,000 and you receive $50,000), BUT you will BOTH save taxes.


As a side note, if you are unable to negotiate that with your employer, your State MIGHT still allow the deduction (but it is usually subject to restrictions and limitations).

[Opus 17]

That deduction is no longer allowed on your federal return after tax reform.  It may be allowed by your state, and Turbotax will include the questions in the interview, so that the answers will transfer to the state even if not allowed on your federal return.

You may want to ask your employer about reimbursement under an accountable plan, or about giving you an increased salary to cover the expenses.  But unfortunately this is between you and them.  How hard would it be for them to replace you with an equally qualified person in today's job market?

(One wrinkle -- if the company doesn't cover expenses, and if the expenses bring your net salary below minimum wage for your state, you may have an ability to file a complaint with your state labor board.  But this is probably uncommon.)