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    reena_lamba79's Avatar
    reena_lamba79 Posts: 3, Reputation: 1
    New Member
     
    #1

    Nov 9, 2009, 08:00 PM
    Expenses as deductions on W2
    Hello,

    I am a H1b based out of Chicago,IL working on a project in Seattle,Wa. I incur about $1800 as my food,travel and rental expenses per month. Can I claim them as deductions on my W2? Also what all can be claimed as deductions. ( I have 2 dependants on me 1. Spouse 2. Recently born baby)

    Any input will be highly appreciated.

    Thanks,
    Reena
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Nov 10, 2009, 10:44 AM
    Reena:

    Are you maintaining a home in Chicago, IL for your spouse and child?

    If so, then the food, travel and rental expenses in Seattle, WA are listed on Form 2106 and deductible on Schedule A as itemized deductions, subject to a 2% AGI floor. This assumes that yor compnay is NOT reimbursing you for these costs with non-taxable per diem payments.

    If not, i.e. your spouse and child are WITH you in Seattle and there is NO separate home in Chicago, then you have no argument that the Seattle job is temporary in nature, which means that the food, travel and rental expenses are not deductible.
    reena_lamba79's Avatar
    reena_lamba79 Posts: 3, Reputation: 1
    New Member
     
    #3

    Nov 10, 2009, 01:39 PM

    Thanks Atlanta Tax Expert... yes my spouse and my child live in Chicago and I do maintain a separate home for them. Also my company does not reimburse me.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #4

    Nov 11, 2009, 03:33 AM

    Yes you can deduct travel expenses during a temporary assignment in a location that is realistically expected to last (and does in fact last) for one year or less. Use Form 2106 or 2106-EZ to figure your allowable expenses that you claim on Schedule A (Form 1040).

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