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Itemized Deductions Schedule-A


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Old 11-11-2012, 03:04 PM
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Valid tax deductions: residence in one state, work full time in another state

I work full time for a company in Florida but my family and residence is in Texas. I rent an apartment in Florida and also have a vehicle in Florida I travel back to Texas every couple of months and work remotely for my time there. Am I able to deduct (1) the cost of moving my residence from Florida to Texas, (2) any of the travel expenses I encur between Florida and Texas, (3) my apartment rent in Florida, etc.?



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Old 11-12-2012, 03:06 AM
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“ Am I able to deduct (1) the cost of moving my residence from Florida to Texas,”------>The IRS has very strict rules surrounding who can claim moving expenses on their tax return .Since you are an employee, you may be able to deduct your work-related moving expenses as an itemized deduction (subject to limitations) on form 2106 and on Form 1040, Sch A if you itemize your deductions on your return . According to the IRS, you can deduct your moving expenses if you meet these three requirements:1.Your move is closely related to the start of work. 2.You meet the distance test. 3.You meet the time test. Your move must be closely related, both in time and in place, to the start of work at your new job location. As you are an employee, you must work full-time for at least 39 weeks during the first 12 months after you arrive in the new location Your move will meet the distance test if your new job location is at least 50 miles farther from your old home than your old job location was from your old home. For example, if your old job location was 3 miles from your old home, your new job location must be at least 53 miles from your old home. If your employer reimbursed you or gave you an advance or allowance for your employee business expenses that is treated as paid under an accountable plan, the payment should not be shown on your Form W-2 as pay. You must keep records to prove the expenses you deduct. You do not include the payment in your income, and you may not deduct any of the reimbursed amounts.
“ (2) any of the travel expenses I encur between Florida and Texas,----->As described above,Now that you've been hired as an employee and are required to travel away from your principal residence, you should deduct the cost of any overnight lodging up to the amount allowed by IRS code and regulations. This should be treated as an unreimbursed travel expense. Travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job. HOWEVER, your tax home is the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home. For example, if you live with your family in TX but work in FL where you stay in a hotel and eat in restaurants. You return to TX every weekend. You may not deduct any of your travel, meals, or lodging in FL because that is your tax home. Your travel on weekends to your family home in TX is not for your work, so these expenses are also not deductible. If you regularly work in more than one place, your tax home is the general area where your main place of business or work is located.
“ (3) my apartment rent in Florida, etc.?”------->Not your apartment rent; as you can see IRS provides tax deductions for homeowners by allowing them to deduct mortgage interest paid and real estate taxes paid for a primary and secondary residence. Unfortunately, rent paid for an apartment is not deductible if the apartment is only used as your primary residence; however, if you open a small business, even on a part-time basis, and conduct the operations of that business from your apartment, you can deduct part of the rent paid as a home office deduction to the extent that the business has income to support the deduction



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