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Working away from home write off

Hello. I would appreciate it if anyone could help me with my situation. I am trying to get information about work related expenses deductions possibility.

I got a new job that required me to work in another state. I moved there end of November 2018 and then moved back home a year later at the end of November 2019. I lived there in a temporary rented apartment for which I paid out of my own pocket, this plus utilities. Also I was traveling every two weeks to see my wife back home. In other words, I got a job and moved away, then I applied for change of my physical office location that was granted and a year later I moved to my new location (which in reality is my normal home where my wife and I now live). So, is there a way to write all that off for my 2019 taxes as a job related or other expenses? It is a big chunk of money I paid, so would love to get some of it back. I did not get any per-diem on it.

Any help will be greatly appreciated.

Thanks!

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1 Best answer

Accepted Solutions
DanielV01
Expert Alumni

Working away from home write off

Maybe for NY, No for DC, and MD is irrelevant for you.  Your situation is somewhat complicated because of your residency situation.  Your are a domiciliary resident of NY, and a statutory resident of DC.  This website explains DC statutory residency:  DC Statutory Residency  Because of your statutory residency status for DC (you "maintained an abode" in DC for more than 183 days, since you had an apartment there), DC is the primary "state" taxing authority over your MD income.  Maryland would be the primary taxing district (normally the nonresident state gets "first dibs" in the pecking order), but MD and DC have a reciprocity agreement, meaning that you are taxed in DC and not MD for your income.  New York also taxes all of your income, because you are domiciled in New York (your main home).  Both DC and NY have different treatments regarding Unreimbursed Job Expenses, which is what your expenses would be considered, if they qualify as deductions.

 

New York has "decoupled" from the TCJA provisions, which means that New York will allow you to itemize on the NY State return even if you do not qualify to itemize on the Federal Return.  It is also one of the few states that is still allowing Unreimbursed Job Expenses to be included in your NY itemized deductions.  For additional information, click on the following link: NY Itemized Deductions and click on the drop-down arrow under the heading Job expenses and certain miscellaneous deductions.  New York operates under the "old rules" (pre-TCJA).  Your tax home (by IRS definition), would still be New York, if, according to the following reference Temporary Assignment or Job (click for more information):

 

If your assignment or job away from your main place of work is temporary, your tax home doesn’t change. You are considered to be away from home for the whole period you are away from your main place of work. You can deduct your travel expenses if they otherwise qualify for deduction. Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less.  (Bolding added for emphasis)

The fact that you switched jobs and started a new job is not addressed in IRS Publication 463, cited above.  Even though you started a new job, if your assignment in Maryland was expected to last (and did in fact last) for 1 year or less, with the anticipation that you are returning to NY to continue the job permanently in New York, Pre-TCJA rules would have allowed deductions (as an employee) for your temporary assignment travel expenses.  Since NY still follows the pre-TCJA rules, they would allow these expenses if they qualify.  If you do claim them on your NY return, make sure you have documentation that proves that your assignment was, in fact, temporary, or they could be disallowed.

 

 

To get these deductions over to the NY return in TurboTax, you will look for the Unreimbursed Employee Job Expenses (Form 2106) section, and input the information.   You can access this section by logging into your return, typing "2106" in the Search box (upper right-hand portion of the screen, with the magnifying glass), and clicking on the Jump to link provided.  Although these expenses will not appear on your Federal Return, because they are no longer allowed there, they should appear on your NY return.

 

Although you can still get this deduction in NY, however, the benefit may be limited.  DC only allows you to itemize what the Federal Return allows you to itemize.  Since the Federal Return will not allow an itemized deduction for your job expenses, DC will not allow it either.  Thus, DC will still tax all of your income as normal.  Since DC is first in the taxing pecking order, the normal provision is that NY will provide a credit for the tax you pay to DC on the same income, with a maximum of what NY taxes that income.  Let's say your DC tax on the income was $4,000, and the NY tax would have been $4500 without itemized deductions.  NY would have given you a $4000 credit for the tax you pay to DC, bringing your NY tax liability down to $500.  However, because of itemized deductions, you only pay $3500 in New York tax.  DC tax is still $4000, however.  So NY will give you a $3500 credit for tax paid to DC, which means you pay no additional tax to NY, but get no refund for the $500 additional paid to DC.  Thus, your tax savings for itemizing in NY was limited to $500.

 

Therefore, it is possible you could see some benefit, but it is likely that it will be a limited benefit.  Still, if there is some benefit, that is still better than no benefit at all. 

 

{Edited 1/2/20:7:01 PST}

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5 Replies

Working away from home write off

Sorry to bear bad news, but the expenses you incurred for moving and living in another state for your job are not deductible under the tax laws that went into effect for 2018 and beyond.  Moving expenses are not deductible for anyone except certain active duty members of the military.  Your job-related expenses are not deductible on your federal return.  Some states may have different rules.

 

 

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-re...

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Working away from home write off

I was afraid this would be the answer. Thank you for your kind reply. Would you know if I could do anything with it in states of Maryland (where my job was), DC (where I actually lived), or NY (where my home is)? Once again, thanks for your help. I can't see anywhere in Turbo Tax where they would ask me for anything like at all. Not sure how to plug that in there.... 

DanielV01
Expert Alumni

Working away from home write off

Maybe for NY, No for DC, and MD is irrelevant for you.  Your situation is somewhat complicated because of your residency situation.  Your are a domiciliary resident of NY, and a statutory resident of DC.  This website explains DC statutory residency:  DC Statutory Residency  Because of your statutory residency status for DC (you "maintained an abode" in DC for more than 183 days, since you had an apartment there), DC is the primary "state" taxing authority over your MD income.  Maryland would be the primary taxing district (normally the nonresident state gets "first dibs" in the pecking order), but MD and DC have a reciprocity agreement, meaning that you are taxed in DC and not MD for your income.  New York also taxes all of your income, because you are domiciled in New York (your main home).  Both DC and NY have different treatments regarding Unreimbursed Job Expenses, which is what your expenses would be considered, if they qualify as deductions.

 

New York has "decoupled" from the TCJA provisions, which means that New York will allow you to itemize on the NY State return even if you do not qualify to itemize on the Federal Return.  It is also one of the few states that is still allowing Unreimbursed Job Expenses to be included in your NY itemized deductions.  For additional information, click on the following link: NY Itemized Deductions and click on the drop-down arrow under the heading Job expenses and certain miscellaneous deductions.  New York operates under the "old rules" (pre-TCJA).  Your tax home (by IRS definition), would still be New York, if, according to the following reference Temporary Assignment or Job (click for more information):

 

If your assignment or job away from your main place of work is temporary, your tax home doesn’t change. You are considered to be away from home for the whole period you are away from your main place of work. You can deduct your travel expenses if they otherwise qualify for deduction. Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less.  (Bolding added for emphasis)

The fact that you switched jobs and started a new job is not addressed in IRS Publication 463, cited above.  Even though you started a new job, if your assignment in Maryland was expected to last (and did in fact last) for 1 year or less, with the anticipation that you are returning to NY to continue the job permanently in New York, Pre-TCJA rules would have allowed deductions (as an employee) for your temporary assignment travel expenses.  Since NY still follows the pre-TCJA rules, they would allow these expenses if they qualify.  If you do claim them on your NY return, make sure you have documentation that proves that your assignment was, in fact, temporary, or they could be disallowed.

 

 

To get these deductions over to the NY return in TurboTax, you will look for the Unreimbursed Employee Job Expenses (Form 2106) section, and input the information.   You can access this section by logging into your return, typing "2106" in the Search box (upper right-hand portion of the screen, with the magnifying glass), and clicking on the Jump to link provided.  Although these expenses will not appear on your Federal Return, because they are no longer allowed there, they should appear on your NY return.

 

Although you can still get this deduction in NY, however, the benefit may be limited.  DC only allows you to itemize what the Federal Return allows you to itemize.  Since the Federal Return will not allow an itemized deduction for your job expenses, DC will not allow it either.  Thus, DC will still tax all of your income as normal.  Since DC is first in the taxing pecking order, the normal provision is that NY will provide a credit for the tax you pay to DC on the same income, with a maximum of what NY taxes that income.  Let's say your DC tax on the income was $4,000, and the NY tax would have been $4500 without itemized deductions.  NY would have given you a $4000 credit for the tax you pay to DC, bringing your NY tax liability down to $500.  However, because of itemized deductions, you only pay $3500 in New York tax.  DC tax is still $4000, however.  So NY will give you a $3500 credit for tax paid to DC, which means you pay no additional tax to NY, but get no refund for the $500 additional paid to DC.  Thus, your tax savings for itemizing in NY was limited to $500.

 

Therefore, it is possible you could see some benefit, but it is likely that it will be a limited benefit.  Still, if there is some benefit, that is still better than no benefit at all. 

 

{Edited 1/2/20:7:01 PST}

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Working away from home write off

Thank you @DanielV01 so much for such a detailed answer. This is exactly what I was looking for.

DanielV01
Expert Alumni

Working away from home write off

@jobo_bobo  Please note my edited answer.  I was advised that I misread your residency situation and have provided extra references regarding my response.  

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