tax question-deductibility of travel

[minnie1928]

I'm trying to get prepared for tax season and need to determine how/if this will impact our taxes:

We moved from NJ to WA earlier this year. My husband continues to work for his NJ employer, but most of the time he works from our WA house. However, twice/month he flies back to NJ for about 4 days each time. During those trips we pay his airfare, hotel, rental car and meals personally. He is not reimbursed for these trips by his employer.

Would his travel costs be deductible? He is an employee of the company, not an independent contractor.

Thanks!

[bjl584]

Why doesn't his employer pay for his travel?

He may be able to deduct at least a portion of his travel expenses.

I'm not sure how travelling and working across state lines would effect this. It may vary by state. I'd ask a CPA on this one.

[disneysteve]

Originally Posted by minnie1928

twice/month he flies back to NJ for about 4 days each time

Originally Posted by bjl584

Why doesn't his employer pay for his travel?

I would say that is deductible but I'd ask the same question. Why is he responsible for that?

[minnie1928]

Let's just say it's complicated...but we are paying for it.

I guess I'll actually have to talk to a CPA for a solid answer. I was reading the tax publications last night, and it's leaning towards deductible. But, obviously it's a good chunk of money so I want to make sure I get it right.

[MonkeyMama]

"airfare, hotel, rental car" - deductible

meals? - probably not deductible - maybe a portion.

BUT, for all of the above, only the portion that is more than 2% of *adjusted gross income* is deductible. & if you are in AMT, you don't get the deduction.

As is for all employee expenses that are not reimbursed by an employer. You can deduct them, but they have to be significant to be deductible.

For state tax taxes, these type deductions depend on the state.

[minnie1928]

Originally Posted by MonkeyMama

"airfare, hotel, rental car" - deductible

meals? - probably not deductible - maybe a portion.

BUT, for all of the above, only the portion that is more than 2% of *adjusted gross income* is deductible. & if you are in AMT, you don't get the deduction.

As is for all employee expenses that are not reimbursed by an employer. You can deduct them, but they have to be significant to be deductible.

For state tax taxes, these type deductions depend on the state.

We've triggered AMT the past few years, so I'm assuming we'll do it again. The expenses are significant (that's why I'd like to deduct them ).

We now live in WA, no state income tax here so that won't be an issue.

Thanks!

[jpg7n16]

Originally Posted by minnie1928

Would his travel costs be deductible? He is an employee of the company, not an independent contractor.

Here's the IRS's view on that topic. After reading this article and the info you provided, I would say that yes those expenses are definitely deductible in your itemized deductions. In fact, they include a list of business travel expenses that are deductible that you may not have even thought of.
Tax Topics - Topic 511 Business Travel Expenses

Also worth considering are other itemized deductions:
Tax Topics - Topic 500 Itemized Deductions


Though if you are subject to AMT, it may not be worth it to even consider. Given that AMT may apply, you may not benefit from the additional deduction.

I'd agree with the posters above that it's best to have a CPA evaluate your situation.

[DRILLINDK]

Expenses related to his travel are deductible. Including airfare, car rental, taxi fare, meals, etc.