Life Question for you Accountant types

**petegz28** · 08-22-2012, 09:05 AM

Ok here is the situation. I have been offered a temporary (contract) position out of state. The contracting company is located in the state where I will be working. They will bring me on as a W-2 employee for the length of the contract. So the question is can I deduct travel and lodging or am I ****ed because I would be an employee and the contracting company actually resides in the city of where I will be working?

Jenson71 · 08-22-2012, 09:11 AM

So this is really an issue of commuting? If so, there's no deduction for it. Where you live is entirely personal, and the tax code only allows for a characterization of travel incurred in pursuit of business, not personal expense.

You could move away and deduct the moving expense, though, if it's far enough away.

boogblaster · 08-22-2012, 10:19 AM

if you itemize your taxes .. yes you can deduct a percent of it .....

**petegz28** · 08-22-2012, 12:03 PM

Quote:

Originally Posted by boogblaster

if you itemize your taxes .. yes you can deduct a percent of it .....

Even though I am a W-2 and not a 1099? And yes, I itemize my taxes.

**Buehler445** · 08-22-2012, 12:53 PM

Quote:

Originally Posted by petegz28

Even though I am a W-2 and not a 1099? And yes, I itemize my taxes.

Go talk to a CPA. It depends on the kind of work and the nature of the travel.

If the travel could be fixed by moving closer to the job, it isn't deductible. But if you're filing a schedule C or whatever the 1099 comes under, you shouldn't be deducting commuting expenses anyway.

1moreTRich · 08-22-2012, 01:18 PM

Yeah, you are pretty much screwed. The IRS is pretty clear on this and even provide an example:

Generally, your tax home is the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home. For example, you live with your family in Chicago but work in Milwaukee where you stay in a hotel and eat in restaurants. You return to Chicago every weekend. You may not deduct any of your travel, meals, or lodging in Milwaukee because that is your tax home. Your travel on weekends to your family home in Chicago is not for your work, so these expenses are also not deductible. If you regularly work in more than one place, your tax home is the general area where your main place of business or work is located.

http://www.irs.gov/taxtopics/tc511.html

08-22-2012, 09:05 AM
petegz28 Supporter Join Date: Feb 2005 Location: Olathe, Ks Casino cash: $2834127	Question for you Accountant types Ok here is the situation. I have been offered a temporary (contract) position out of state. The contracting company is located in the state where I will be working. They will bring me on as a W-2 employee for the length of the contract. So the question is can I deduct travel and lodging or am I ****ed because I would be an employee and the contracting company actually resides in the city of where I will be working?
Posts: 127,981

08-22-2012, 09:11 AM	#2
Jenson71 fides quaerens intellectum Join Date: Oct 2003 Location: United States Casino cash: $8330900	So this is really an issue of commuting? If so, there's no deduction for it. Where you live is entirely personal, and the tax code only allows for a characterization of travel incurred in pursuit of business, not personal expense. You could move away and deduct the moving expense, though, if it's far enough away. Last edited by Jenson71; 08-22-2012 at 09:17 AM..
Posts: 15,986

08-22-2012, 10:19 AM	#3
boogblaster MVP Join Date: Sep 2005 Location: Verdigris Valley Campsite Casino cash: $10004900	if you itemize your taxes .. yes you can deduct a percent of it ..... __________________ WR or S please
Posts: 10,305

08-22-2012, 01:18 PM	#6
1moreTRich Starter Join Date: Nov 2005 Location: Wichita, KS Casino cash: $10009560	Yeah, you are pretty much screwed. The IRS is pretty clear on this and even provide an example: Generally, your tax home is the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home. For example, you live with your family in Chicago but work in Milwaukee where you stay in a hotel and eat in restaurants. You return to Chicago every weekend. You may not deduct any of your travel, meals, or lodging in Milwaukee because that is your tax home. Your travel on weekends to your family home in Chicago is not for your work, so these expenses are also not deductible. If you regularly work in more than one place, your tax home is the general area where your main place of business or work is located. http://www.irs.gov/taxtopics/tc511.html
Posts: 283