Tax deduction for a second place of living in a different state

[adwehbe]

I had to move to Indiana from Louisiana and left my wife and kids in our home in Louisianaslast May due to long term assignment for 2+ years.

I had to rent an apartment with utilities as well as had to buy office equipment and supplies needed for ny new assignment.

I am receiving a per diem that is being reported as income on my W-2 form

Two questions:

1- Can I deduct these expenses? 

2- I see my W-2 shows paid 2 state taxes one in LA ands one in PA. I did answer that I have paid taxes in 2 states when I started my taxes. Not sure where to input this data? I am currently in deductions. 

[DavidD66]

No. You cannot deduct any of the travel and housing costs.  The Tax Cuts and and Jobs Act suspended the previous deduction for job-related expenses or other miscellaneous itemized deductions that exceeded 2 percent of your adjusted gross income is suspended. This includes unreimbursed employee expenses such as uniforms, union dues and the deduction for business-related meals, entertainment and travel...  If your living and other expenses are less than, or approximately the same as your taxable per diem, you may want to speak with your employer about switching to an expense reimbursement arrangement.  You would be reimbursed actual expenses, but it would not be taxable.

TurboTax should have asked you if you earned income in other states during the initial interview.  If it didn't or you skipped over it, that's OK.  When you get to the State section, indicate that you need to add another state.  TurboTax will guide you through reporting for both states.  Your home state of Louisiana will tax 100% of our income regardless of where it was earned.  Pennsylvania will also tax your income from that state.  To keep from being double taxed, Louisiana will give you a credit for tax paid to another state.  You should enter your non-resident (Pennsylvania) state return first, and then complete your Louisiana return.

[adwehbe]

Thanks a million for the quick reply.  One last question.

I assume I can deduct my office equipment and supplies I had to buy to be able to do my work?

[AnnetteB6]

No, the office equipment and supplies are also considered to be employee business expenses.  That expense was also suspended by the Tax Cuts and Jobs Act for tax years 2018 through 2025.  They cannot be deducted on your Federal tax return.

Some states did not conform to the change and they still allow a deduction for employee business expenses.  You can enter the information about your expenses into Form 2106 as part of your Federal return.  Then, if it is allowed by the state return, the information will be transferred there.  

Use these steps to go to that section of your Federal return:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
• This opens a box where you can type in “2106” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
• The search results will give you an option to “Jump to 2106”
• Click on the blue “Jump to 2106” link

@adwehbe