I am on a job assignment away from my home. During my assignment, I am given a per diem that is treated as income (reported in box 1 on W2), which obviously increased my income considerably. While on this assignment, I am renting a place to live since it is over 2000 miles from home. How much can I deduct of my living expenses while at this job and what form do I use? Also, is there a standard rate for deduction?

Now you can deduct these as employee business expenses as itemized deduction on schedule A (Form 1040). You can deduct the expenses that are more than 2% of your adjusted gross income (Form 1040, line 38). Travel expenses include transportation, lodging and meals or per diem expenses use Form 2106 or 2106-EZ to figure your allowable expenses that you claim on line 9 of Schedule A (Form 1040NR). Your U.S. Tax Return: Itemized Deductions