worker lives out of state, tax home, etc.

[jeff501]

My Indiana client's spouse lived and worked in Oklahoma and did so the entire year of 2010, but is still a resident of Indiana. Her husband is in Indiana. They own a home in Indiana, she rents an apartment in Oklahoma. I don't believe she qualifies for a Form 2106 deduction for rent, etc. (they already have enough deductions for schedule A) as the job location isn't really for the convenience of the employer rather this is where the employer has the business and she chose to work for them and live in Oklahoma.

I'm thinking since this is her tax home she can't take any living expense. Does anyone have any insight whether she can take a deduction for living expenses similar to the per diem truck drivers get when they maintain a home and are also on the road overnight? I don't want to do anything to flag their return as she incurred $8,900 in expenses in 2010 for living expense in Oklahoma.

As always, thanks for any help. This is a great forum!

[Burke]

No, she cannot take her living expenses. She chooses to live where she wants Where her job is, is where her tax home is. You may be able to file separate state returns however, depending on the two different states' laws concerning residency. Whether this is a benefit or not, I cannot tell you. Each has their different deductions and credits.
However, I did have a client in this position once for 3 yrs, and he decided buying a small house was cheaper than hotels, and then he was able to deduct real estate taxes and the mortgage interest. He went home every other weekend or so. And the state where he was living had no income tax. So it helped him.