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Temporary Job Assignments
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Fellowship and temporary reassignment

I currently live in Texas, as I have my entire life. I am selling my home here and will be renting in CA. My 2012 taxes will consist of 6m of Texas and 5m of CA income (July is a transition month with no income). My 2013 taxes will be 7m of CA and 4m of Texas as I return from fellowship. Fellowship is Aug 2012-July 2013. I own no property here in TX since I've sold my house but I will have a storage unit keeping many of my items back in the town I'm leaving and plan on returning to. I will have nothing but a verbal from my home program that I will have a spot on staff after completion of my fellowship. Can I utilize the tax deductions in accordance with the Temporary Relocation form? Can I still count Texas as my tax home?

Thanks for the help and the great website

Zip Code: 76508

Re: Fellowship and temporary reassignment

I think the answer to your question hinges on intent. If you intend to return to the metropolitan area where you were living prior to taking the Temporary Job Assignment, it seems to me that you should be able to qualify for that luctrative tax deduction.

How to prove intent? If you have a verbal offer from the Texas employer, do not interview for jobs in other cities, and maintain a storage unit in Texas for your furniture, that would seem to me to demonstrate intent.

Please read through the other Questions and Answers in this Forum, and check out IRS Publication 463 (http://www.irs.gov/pub/irs-pdf/p463.pdf).

Zip Code: 01801