Client makes good money for these parts ($170K). Job attaches to having to be on natural disaster sites. Last year went to 4 sites, ranging from Santa Ana winds to Hurricane Irene.
Problem is, more often than not he has to pay room and board and is not reimbursed. Tax home is Mobile, AL. Company does not have an "accountable plan" for these type of expenses, according to client. Two of the locations were incredibly expensive - greater LA and greater DC.
Had $25K in travel, per diem, hotels, etc. to go along with $170K in income. However, this goes on Form 2106, which means he loses $3400 in expenses to the 2% haircut. His whopping salary is somewhat misleading, as his "real" net income is less than $145K.
Here comes the "rest of the story." Most of these states measure the income by starting with Federal AGI, and do not allow itemized deductions no matter how great. (AL is an exception) My question: is there some way to take advantage of these $25K in real expenses such that he can get relief at the state level??
Problem is, more often than not he has to pay room and board and is not reimbursed. Tax home is Mobile, AL. Company does not have an "accountable plan" for these type of expenses, according to client. Two of the locations were incredibly expensive - greater LA and greater DC.
Had $25K in travel, per diem, hotels, etc. to go along with $170K in income. However, this goes on Form 2106, which means he loses $3400 in expenses to the 2% haircut. His whopping salary is somewhat misleading, as his "real" net income is less than $145K.
Here comes the "rest of the story." Most of these states measure the income by starting with Federal AGI, and do not allow itemized deductions no matter how great. (AL is an exception) My question: is there some way to take advantage of these $25K in real expenses such that he can get relief at the state level??
Comment