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Travel Expense - Year Contract On Location In Another State

I am a contract worker through an employment agency (not a 1099 employee).  My permanent address is with my parents in my home state where I will also pay taxes, but I had to rent an apartment in the contract state in order to complete the assignment as I could not work remotely. The contract was for a year, but could terminate in less than the full term at their option. 

 

Can I deduct travel, rental housing or other expenses associated with my assignment location as well as monthly travel back and forth between the two states?  Similarly, since my doctors and dentists are still in my home state, can I deduct mileage to and from my doctors from my contract state to my home state as medical mileage?

 

My car, voters registration and drivers license are all still showing residence in my home state.

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3 Replies
ee-ea
Level 15

Travel Expense - Year Contract On Location In Another State

When you travel away from your tax home for work you might be eligible to deduct travel expenses on your taxes. For tax years prior to 2018, un-reimbursed employee expenses, including travel away from your tax home, can be an itemized deduction. However, beginning in 2018 these types of expenses are deductible for businesses but no longer as an un-reimbursed employee expense for employees.

 

Travel for medical is a medical deduction you can take.

Travel Expense - Year Contract On Location In Another State

Not sure I understand.  Let me give specifics: My state of tax residence (and driver's license, car, and voting registration) is Illinois where I live with my parents.  The temp employment contract is in Iowa.  I rent an apartment in Iowa so I can complete the contract. but am not reimbursed for it.  I travel 257 miles each way once per month to Illinois where my legal address remains.  Can I deduct my housing expense in Iowa if I do not pay rent in Illinois to my parents?

 

Can I deduct the 257 miles each way for each of my dental appointments and medical appointments during the contract?  Can I deduct the trip to Iowa taken before the contract started during which I was looking for an apartment to rent?

Travel Expense - Year Contract On Location In Another State

No, none of that is deductible under the Tax Cuts and Jobs Act.  It is suspended until 2025.

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