I moved to another state for a summer internship during graduate school. Can I deduct my expenses (house, food, travel)?

[and-549017]

Resident in CA and internship in NY.

[ColeenD3]

No. You do not have a business. These are potential business expenses but do not apply to employees or persons who receive a 1099-MISC for their compensation.

[and-549017]

Thanks for your reply. I received a W2 for my compensation. Should they be considered business expenses?

https://www.irs.gov/taxtopics/tc511#:~:text=You%20can%20deduct%20travel%20expenses,work%20assignment....

[ZoltanB45]

In that link, it mentions that the deduction is pertaining to those that are either self-employed, a farmer or in the military. 

[and-549017]

Thanks for checking it and sorry for bringing up the wrong information.

I am still a little bit confused since I received a W2 for my internship and I have several expenses in terms of

- temporary housing ( moved from California to NYC)

- hotels 

- flights, taxis, public transportation 

- meals (is there a per diem or should I claim them with receipts?).

I was looking online and I found several sources  (see below) mentioning that they could be deducted but I received an opposite opinion at the beginning of this thread. Is there any official source that could clarify it? 

Thanks in advance for your support!

Andrea

https://ttlc.intuit.com/community/taxes/discussion/cost-of-lodging-when-working-an-internship-can-th....

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/summer-internship-required-reloc...

[ErnieS0]

Unreimbursed employee expenses are not longer deductible on your federal return under the tax law that took effect under the 2018 Tax Cuts and Jobs Act.

California and New York still allow itemized deductions so you can enter those in Deductions & Credits > Job Expenses for W-2 Income.

• Type "2106" in Search in the upper right
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It's doubtful you have deductible business expenses related to living in New York for an internship.

The IRS has a concept called a Tax Home. A Tax Home is the place where you earn your money, even if it is not your permanent home. Expenses while staying at your tax home are not deductible.

Here is the IRS example:

Your family home is in Pittsburgh, where you work 12 weeks a year. The rest of the year you work for the same employer in Baltimore. In Baltimore, you eat in restaurants and sleep in a rooming house. Your salary is the same whether you are in Pittsburgh or Baltimore.

Because you spend most of your working time and earn most of your salary in Baltimore, that city is your tax home. You can’t deduct any expenses you have for meals and lodging there.

However, when you return to work in Pittsburgh, you are away from your tax home even though you stay at your family home. You can deduct the cost of your round trip between Baltimore and Pittsburgh. You can also deduct your part of your family's living expenses for non-entertainment-related meals and lodging while you are living and working in Pittsburgh.

See Tax Home

[and-549017]

Thanks Ernie!

I changed 3 employers during last year (University, Internship company, full time job company) and I moved in 2 states with working locations in 3 states.

What should I consider my tax home in the following case?

Jan - Jun studying/woking in California for employer A based in CA

July - Sep working in NYC for employer B based in NYC

Oct - Dec woking in California for employer C with job location based in WA ( working virtually from CA due to pandemic)

I thought that my tax home was CA and this is why I was planning to deduct my internship expenses in NYC. Is it correct?

All best,

Andrea 

[AmyC]

Yes. Your tax home is where you vote, intend to live, etc. It looks like CA is your home state since NY was just temporary. You would file a resident CA and nonresident NY return. The employee expenses are allowed in both CA and NY as neither state follows the federal. If you itemize on the state, you can include employee expenses.