Temporary Assignment Tax Deductions
One of the hidden gems of my temporary assignment is I may be able to deduct many of my expenses from the temporary assignment on my income taxes. While this is a sizable opportunity to reduce my income taxes, there is little chance for me to come out ahead since these are tax deductions and not tax credits. My hope is to identify all the areas of opportunity so that I can maximize the value of these deductions to reduce the net costs of the temporary assignment.
So far here are some of the expenses it looks like I will be able to deduct:
1.) Housing expenses including rent, furniture rental, and utilities for my housing in NY.
2.) 50% of dining/food expenses. I can basically take these deductions like any worker can for unreimbursed business trips. Most likely I will just use the established per diem rates rather that tracking all my food/dining expenses.
3.) Car mileage while in NY, tolls, parking, and other transportation expenses. I could rent a car and deduct all the expenses, but I took my car to NY with me. I can take the standard mileage rate of $0.445/mile for all the miles I put on my car while away and also deduct any additional transportation expenses I occur while away.
4.) Trip expenses to go back and forth to NC. This is of great benefit because I can deduct my airfare for each roundtrip trip back to NC.
Each of these items should add up to a sizable deduction for me. I will follow up with greater details and my plans to maximize the potential value of each of these areas for tax deductions. In the end this should help me dilute the impact of the unreimbursed expenses while on the assignment.
Related in Temporary Assignment:
Wrapped China Assignment, Round 2 (Jan 01, 2014) Hanoi, Vietnam We just wrapped up our temporary assignment in China and arrived back in the US before the end of the year. Its amazing how time flies, it seems like just a few days ago that we began...
Packing Tips for Extended Family Travel (Oct 14, 2013) My young family is on the move - we are currently living in China on a 6 month work assignment. With the exorbitant cost to ship additional stuff to China we were incented to only bring what we could fit...
Survival Guide to Traveling with Young Kids (Jul 28, 2013) We didn't have much experience traveling with our young kids prior to our current assignment in China. We did lots of reading in preparation, but we were unprepared for both how exhausting and rewarding it has been for us. Here...