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Housing allowance - Income?

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A

AttyNKY

Guest
I've been offered the opportunity to work in NYC for a year by my current employer in Kentucky. Can I be reimbursed for housing expenses in NYC without claiming any portion of that reimbursement as income if the apartment I rent in NYC is my primary residence? Does the answer change if I sell, rent, or keep (vacant) my current home?
 


L

loku

Guest
Tmporary assignment

If the reimbursement is included in your W2 income, your “travel” expenses, including lodging, while AWAY FROM HOME on business are deductible as employee business expense. However, If all of the following four conditions apply, there is no need to show the expenses or the reimbursements on your return:
1.You fully accounted to your employer for your work-related expenses.
2. You received full reimbursement for your expenses.
3. Your employer required you to return any excess reimbursement and you did so.
4. Box 13 of your Form W–2, Wage and Tax Statement, shows no amount with a code L.

You are AWAY FROM HOME if your assignment is temporary.

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. Your travel expenses are deductible. 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. You must determine whether your assignment is temporary or indefinite when you start work. If you expect employment to last for one year or less, it is temporary unless there are facts and circumstances that indicate otherwise.

The only problem I see is that if you sell your current home, it MAY be evidence that the assignment or the move away from KY is not considered temporary. This MIGHT also be the case if you rent the home.
 

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