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hardwired · Feb 22, 2006, 10:34 PM

I worked in FL for 6 months last year while the family remained in MA. In December I left the job in FL for an opportunity in MA. We were in the process of relocating but my spouses situation with her employer changed and could no longer make the move. During this time I incurred significant additional housing and travel expenses while employed in FL.

Can any of this be deducted in Misc Deductions or somewhere else for employment related expenses? Since I moved there and then had to move back, what might be considered relocation expenses?

Also, I had travelled to the area 6 weeks earlier prior to obtaining the position in FL to search for employment in my field. Can I deduct these travel expenses as job hunting expenses and where in the return would they be indicated? Also, what expenses would be elegible for a deduction (air, car, hotel, meals, etc). The trip length was 4 or 5 days.

I made similar trips to other states but they did not result in obtaining employment. Are these trips deductible as well?

AtlantaTaxExpert · Feb 22, 2006, 10:42 PM

You could probably make the argument that the Florida position was temporary, but I doubt that an IRS auditor would buy it.

The other trips to search for jobs are legitimate job hunting expenses. You want write off the travel expenses as long as they are not excessive.

hardwired · Feb 23, 2006, 08:54 PM

I took half a dozen flights along with hotel stays over six months. Are the flights and hotel stays deductible as long as it was a temporary situation? What would be the litmus test for an auditor?

AtlantaTaxExpert · Feb 23, 2006, 10:00 PM

The fact that you stayed in hotels (vice getting an apartment) helps your argument that it was a temporary work assignment.

Mostly, it's a matter of intent.

If the auditor called your FL employer and asked if you expressed a desire to continue at the job indefinitely or if you made it clear that the job was strictly temporary, what would the answer be? Remember that, in taxes, the burden of proof is on you. If the auditor does not believe that you took the job as a temporary position, he can disallow the expenses on tha belief alone. You have to decide if you want to take the chance.