Hi

I'm finishing a surgical residency and going to do a non-mandatory 1 year fellowship in a subspecialty leading to extra certification. I heard that all of the living expenses for that year are deductible. Is this true? Is there an IRS form or publication I can read concerning this?

Thanks for any help!

Zip Code: 65201

Yes, you heard correctly. There is a very lucrative tax deduction that you can claim in connection with a temporary job assignment.

Here are the basics. You can generally deduct the cost of travel, lodging, and 50% of the cost of the meals incurred during a job rotation outside the general vicinity of where you live. The rotation must be for a specific period of less than one year, and you must intend to return to the city that you were living in prior to the rotation.

For more info, check out page 4 of IRS Publication 463 available at: http://www.irs.gov/pub/irs-pdf/p463.pdf.

Zip Code: 01801