[cranberryrn]

I work with a woman who lives in Lubbock, Texas but works fulltime in Dallas and deducts her travel expenses on her tax returns each year. She says that she is able to do this because she takes occasional temporary (travel nursing) jobs in California and Nevada sometime during the year which breaks up her tax home. Her job in Dallas is Permanent - she has been employed by the same facility for 10 years now. If she does work any in lubbock - it is very, very minimal because she is always in Dallas and that work would be temporary (per diem nursing).

I have reviewed publication 17 at length and am not able to locate the "why" to why her accountant is able to deduct these deductions.

The reason I am asking is because I live in Dallas and am permanently employed at that same facility, but have recently changed my status from fulltime to PRN (work as needed). Currently, I am working approximently four days each month, and am otherwise working at various facilities as a per diem nurse (through a temporary staffing agnecy). I understand that I can deduct my auto expenses for these temporary assignments which change from day to day. I am going to accept a position in California in which I will work eight days back-to-back once a month and then return to Texas for what I am currently doing. It is my intent currently for this not to come to an end before a 12 month period elapses. I am trying to decide if it is worth it or not because it is expense staying in California, etc. If this employment last longer than 12 months will I be able to claim my travel expenses. I probably will take other short-term temporary assigments from time-to-time as well outside of the Dallas area.

I hope this makes since -

Thanks!

[AtlantaTaxExpert]

Contract work of the nature you describe can allow for the deduction of the travel costs, either on Schedule C or on Form 2106, as long as a permanent home is maintained in areas other than the work area AND the work is temporary (less than one year).

Based on that rule, your friend is okay, as are you as long as you do not go over one year.

[taxsearcher]

Sounds like a joke to me. If your friend has a permanent position in Dallas, this is her tax home. No deductions for travel to Lubbock/California etc would be possible unless she were doing work there. If she travels to CA for work then that is different.

[AtlantaTaxExpert]

TaxSearcher:

Actually, this is pretty common in the nursing profession.