Worked in Juarez, Stayed in TX. But live in Indiana

[Manfrom317]

What is the name of your state (only U.S. law)? Indiana

I have Turbo Tax Home & Buisiness. I know I can deduct some of my expenses while working away from home. But Turbo Tax only gives a single line to enter a number and does not guide you on how to get that number at all.

All together I spent 3 months away from home in 2010. 1 month in Sao Paulo Brazil and 2 months working in Juarez MX but sleeping in El Paso TX.

My employer paid for most of my living expenses (most of the hotel, most the car, airfare, and a per diem) So I know that reduces what I can claim.

Researching on my own I found I can take a standard deduction for expenses of $105/day when I was in Brazil, I should also be able to deduct the additional $300 I paid the hotel. If I understand correctly, I actually get to deduct 1/2 of the standard deduction minus the per diem. That is still $32.50/day and well worth worrying about.

Then for my 2 months in Mexico I'm really confused on. I was working in Mexico for 10-16hrs a day but sleeping in El Paso TX. The deduction is larger for MX and I was spending the vast majority of my waking hours there. But I was sleeping in TX. So I have no clue which one I should be able to deduct for.

When staying in Texas and working in Mexico, the company provided a shuttle. But because of different situations, I had to rent my own vehicle a few times or not get to/from the factory or other work related obligations. I am sure those rental costs would be deductible as well.

During that trip, they moved us from a hotel to an apartment. I had to buy several items they did not provide that a hotel would have provided. (towels, pillow, etc) But I am assuming those items would be factored as part of the standard deduction, unless a full itemized account of that trip ends up being more than the standard deduction.

I have nearly every receipt from the Mexico/TX trip. I may be missing a couple food receipts. The only receipt I have from Brazil is for the additional hotel costs.

Unfortunately, I do not have this world traveling job anymore... after 7yrs 11months they laid me off because I made too much money.

 

[Zigner]

You would be wise to seek the assistance of a tax pro. Your situation is far too complex for an internet forum.

 

[Manfrom317]

I understand and agree...

But I am unemployed now. Past experiences with H&R Block and such have been less than favorable. They have always treated me as a 'standard deduction, now gtfo' type of customer. I do not have cash to spare to pay a real pro.

I am not someone who will be getting 10k+ back. Preliminary math has me getting 500-700 back more by doing an itemized deduction rather than the standard deduction. Being unemployed, that is another month of mortgage and lights.

 

[Manfrom317]

I also believe that if I do go to a professional, the more I know the better. This way I can question anything they may skip over. And I know to point out unusual deductions they may otherwise miss. I would expect most pros with only a year or less experience to completely fumble this.

My main question in the complicated mess above can be stated rather straight forward. I likely overcomplicated my question in an attempt to fully inform any respondents of the situtation with the initial post.

Because I was working in Mexico, but sleeping in Texas, do I take the daily allowance for Mexico or Texas?

If the unusual situation requires me to account for a number of hours in each place and split the deduction accordingly, I think I would be able to do so as I kept detailed records of that trip.

 

[LdiJ]

I also believe that if I do go to a professional, the more I know the better. This way I can question anything they may skip over. And I know to point out unusual deductions they may otherwise miss. I would expect most pros with only a year or less experience to completely fumble this.

My main question in the complicated mess above can be stated rather straight forward. I likely overcomplicated my question in an attempt to fully inform any respondents of the situtation with the initial post.

Because I was working in Mexico, but sleeping in Texas, do I take the daily allowance for Mexico or Texas?

If the unusual situation requires me to account for a number of hours in each place and split the deduction accordingly, I think I would be able to do so as I kept detailed records of that trip.

Don't go to a National Chain. Look for a local office that is open year round. They won't be any more expensive than a National Chain (and maybe considerably less) and most likely will have the experience you need. Ask about costs up front.

I am a little concerned that you are trying to double dip a bit on your work related expenses. You cannot claim standard per diem rates if your employer covered most of the cost of your hotel, transportation and food. You can only deduct your own truly out of pocket expenses.

If your employer did not cover those costs you could use the per diems.

 

[Manfrom317]

I understand that concern. I am being very careful around that subject.

Here is the table I am getting the internation per diem rates from:
U.S. Department of State | Welcome to Office of Allowances

It list separate rates for lodging and "Meals & Incidental Expenses".

I have not been able to find the page for 2010 yet, so I have been using 2009 information so far. This pdf has the rest of the travel deduction information I found:
http://www.irs.gov/pub/irs-pdf/p463.pdf

On page 5 is where it list the bulk of the information I believe is relevant. A table of what can be deductible, and explanation of the standard allowance, and an explication of the 50% allowed.

They did pay for the majority of transport that was directly work related. But I had to pay for my own transport to get food and anything else I needed to live. I was not reimbursed for the cost baggage fees or for my work visa to mexico. The per diem my employer gave did not cover my full daily expenses.

If required, I could itemize my costs for the trip to Mexico, though it would be lacking a few things (~$30 total).

Thank you for the advice on finding a local professional. I am sure I can find one who has been in business for a decent period of time who will also charge a reasonable rate. Looking over all the posts here, I see that you are one of the solid contributer. If you say I absolutely should go to a pro for this, I guess I should suck it up and listen.

I will be returning to this forum and reading a large portion of the real estate law section when the other side of my half double is ready to rent out. I will want to make sure all holes are plugged in the lease agreement and I am covered from all angles. (the lease will be looked over by a lawyer before I make it final)