Hi,

I am a full-time student from Ohio. I had a paid internship in Delaware last summer. My employer just sent me the 1099-MISC, with $3,200 in Box 7, Nonemployee Compensation. To participate in this internship, I had to temporarily move to Delaware, so I rented an apartment there.

1. Would I be able to deduct the apartment rental expense on Schedule C? If so, what line would I list this deduction on?

2. Could I deduct the mileage expense driving to and from Delaware? If so, would I use the standard mileage rate of 55.5 cents per mile?

3. Could I deduct the mileage expense for commuting between the apartment and work?

Thank you very much.

“1. Would I be able to deduct the apartment rental expense on Schedule C? If so, what line would I list this deduction on?”-====> No you cannot. You can deduct moving expenses for a job, but not living expenses (moving Co. not security deposit or rent payments). You can deduct the space if you only use it for business, which you are not.

“2. Could I deduct the mileage expense driving to and from Delaware? If so, would I use the standard mileage rate of 55.5 cents per mile?”-===>UNLESS you are an unpaid intern, you, as a paid intern, can deduct any of the travel expenses incurred going between work and school. You may not deduct mileage incurred going between home and work. If the internship is not full time and you continue to attend school, you may continue to deduct costs for tuition, books and other expenses as needed for your education. Because your internship is part of your education, anything that you must buy to complete yout internship may be counted as education expenses. This includes items like notebooks, paper, pens, office supplies, computers and other related items. If you choose not to, or are unable to use the standard mileage rate, you can deduct the actual expenses associated with your vehicle.


“3. Could I deduct the mileage expense for commuting between the apartment and work?”==>Sorry no you can’t deduct commuting exp; However, certain situations allow you to take a deduction for expenses you incur while commuting to client sites, second jobs and while on temporary work assignments. If, on the same day, you regularly travel from your primary job to a second job, you can deduct your transportation costs to go to your second job.If you pay tuition and fees to your school to get credits for the internship, those would be eligible expenses for an education credit.