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Re: temporary job assignment deduction

Based on the limited info provided, it appears to me that you have a very good chance of qualifying for the temporary job assignment deduction.

Here are the rules:

1. You must live and work in one city prior to taking a job in another city. The new job must be for a term of less than a year. An internship following med school wouldn't qualify.

2. You must be able to show that you intend to return to the first city to live and work after the temporary job assignment ends.

If you meet both conditions, all the travel and living expenses of the temporary job assignment become tax deductible. Basically, it's treated as a long business trip.

You can show intent a few ways. If you have a spouse or other members of your immediate family who remain in the first city, then you most likely qualify. A signed employment contract for a position in the first city that will commence immediately after the temporary job assignment ends will also help you qualify.

And if you are only compensated as an employee (taxes are withheld from your pay), you'll claim this deduction on the Form 2106, Unreimbursed Employee Business Expenses, which will flow through as a Miscellaneous Itemized Deduction.

Zip Code: 01801

Re: temporary job assignment deduction

Here's what the IRS says about Temporary Job Assignments in the Publication 463:

Temporary Assignment or Job

You may regularly work at your tax home and also work at another location. It may not be practical to return to your tax home from this other location at the end of each work day.

Temporary assignment vs. indefinite assignment.

If your assignment or job away from your main place of work is temporary, your tax home does not change. You are considered to be away from home for the whole period you are away from your main place of work. You can deduct your travel expenses if they otherwise qualify for deduction. Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for one year or less.

However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than one year, whether or not it actually lasts for more than one year.

Zip Code: 01801