I am currently a permanent county government employee but I am working as a consultant to state government under a contract between my county employer and the state government department. I am being told that the travel reimbursement that the state pays me is reportable as income. It seems that the state is trying to classify me as an independent contractor even though the contract I am working under is between my county government and the state government, not between me and the state. In order to qualify for the state travel reimbursement, I must maintain my residence in my home county, which is about 500 miles away, and rent accommodations in the state capitol county. I must submit my rent receipt and my mortgage payment receipt each month for the reimbursement. As I read the rules for tax home I am confused because it does not appear to cover a situation such as mine. Can you direct me to any IRS information regarding my question?