Question about Nonaccountable plan

[rfk]

My client has asked me this:

"Also, what else, if anything, other than having my vehicle registered to my parent's address should I do to verify I qualify for this plan?" (Non-accountable)

Client keeps tax address at parents' home 300 miles away from work as a traveling speech therapist in southern CA. The company gives her money and she of course pays for her items and it is reported on her paycheck. She wants to make sure that she is following the rules of the plan for tax purposes now and at reporting time. I have basic knowledge about these plans, but I want to know if I should explain any gotchas that may exist as far as tax implications now and at reporting time. I want to cover all bases. She will probably be doing this for another 3 - 6 months.

Thanks for your help.

rfk

[AJsTax]

Tax address

has nothing to do with tax home. The place where she actually earns her income is her tax home and is the ruling factor as to what deductions she is entitled to. Now it could be a temporary work location, that is another whole set of rules. But from your post I did not get that impression.

[Earl]

Traveling therapist

Probably set up the same as a traveling nurse. If she uses her parents residence as her home she would probably not be able to take a deduction. One requirement to allow this is that she have duplicate housing expenses and if her parents are paying all the housing expenses this would preclude her from taking a deduction.

[taxcraft]

Non-Accountable Plan

My understanding is that the expenses under a true accountable plan do not have to be reported. Under a non-accountable plan they do have to be reported on the return.