Military temporary location

[Possi]

My client's home base is Norfolk, but he has temp duty in CT, expected to be less than 365 days, so the Navy is not moving his family, and not assisting in any travel back and forth.

Any tax breaks for him? I told his wife that as far as I know, CT becomes his new "tax home" insofar as travel expenses go, so there are none to deduct.

[BP.]

temp duty in CT, expected to be less than 365 days . . .

far as I know, CT becomes his new "tax home"

Check out Pub 17, p. 183 & TTB p. 8-11. Might not have a change in his tax home.

[Possi]

Temp trips home...

So, his trips home are deductible "up to the amount it would have cost to remain at the temporary place of work."

huh?

Since he is military, I don't think he is staying in a hotel, so it really probably doesn't cost him much to remain at the temporary place of work. How is that determined? Is it even worth discussing?

I can tell you that his wife will want to deduct every single dime of every single meal, and every single iTune it takes to get any family member back and forth all year long.

I'm just loading for bear, is all....

[FEDUKE404]

Home of record governs

Without digging out the reference sources (it IS 04/15) it is my understanding that for someone in the military, their home of record (i.e. where they had a permanent home prior to entering active duty) remains their home tax state. Even in your example, VA might not be his "home state."

Wherever they may be stationed does not change their taxes.

Furthermore, if the guy is on active duty, he is already either getting TDY pay or operating under PCS orders.

Things could get a bit sticky for spouse (home state taxes income, "new" state does not?). But that is a different topic.

As for what his wife wants to deduct, you better get ready to put on your own battle gear and tell her "not much!" Actually, I don't see one red ¢ there to deduct.

FE

[Possi]

Me, either

I don't see a deduction, either. I asked her what kind of pay he is getting for this temporary duty, what kind of traveling assistance, etc, and she said not one dime.

I find that very hard to believe.

I have LOTS of military clients, and fully understand their "home states of record" so, I was just asking about this temp location with regards to traveling back and forth.

Thank goodness for Southwest is all I have to say.