Travel issues for W-2 welder

[cathe]

New client (don't cha' just love 'em). Welder who travels US, but is multiple W-2 not 1099-Misc. Where is his tax home for travel and per diem? No reimbursements from employers. I read his tax home is at the employers location for each job, so no travel to "work" each day and no travel from personal residence to tax home? What about per diem.

I know what to do for self employeds, but never had a wage earner who jumped jobs all year long and kept a personal residence in one place.

Cathe

[FEDUKE404]

Consider itinerant status

He may well have NO tax home.

Nice summary -->>> http://lisathetaxlady.com/2013/01/09...ant-taxpayers/

My best guess, without further research, is no "travel" and no "per diem."

Federal return should be a snap. State returns could be a challenge. Collect your fees up front!

FE

[ddoshan]

New client (don't cha' just love 'em). Welder who travels US, but is multiple W-2 not 1099-Misc. Where is his tax home for travel and per diem? No reimbursements from employers. I read his tax home is at the employers location for each job, so no travel to "work" each day and no travel from personal residence to tax home? What about per diem.

I know what to do for self employeds, but never had a wage earner who jumped jobs all year long and kept a personal residence in one place.

Cathe

If he has no regular place of work his tax home may be the home he maintains - his personal residence. It is a facts and circumstances situation and you just have to review the rules and his circumstances to see if he could possibly meet the requirements to consider his personal residence as his tax home. Always tricky and fun.

[ruthes]

Tax Home

If he can't list a tax home he does not get to take deductions for travel. I am sure when he finds this out he will find a tax home.

[Uncle]

Maybe not

If he has no regular place of work his tax home may be the home he maintains - his personal residence. It is a facts and circumstances situation and you just have to review the rules and his circumstances to see if he could possibly meet the requirements to consider his personal residence as his tax home. Always tricky and fun.

I just lost an audit and appeals case on this issue. TP was away from usual residence over 180 days, worked in a great many different places around the US. No tax home allowed. No travel expenses allowed. No per diem allowed. No nothing allowed. Everything was a personal expense.

[Gretel]

I just lost an audit and appeals case on this issue. TP was away from usual residence over 180 days, worked in a great many different places around the US. No tax home allowed. No travel expenses allowed. No per diem allowed. No nothing allowed. Everything was a personal expense.

Uncle, did he own a home or rent? Did he have a family member living in his home?

[Uncle]

Rented

Uncle, did he own a home or rent? Did he have a family member living in his home?

TP "rented" a room in his mother's house. This was deemed irrelevant at audit & appeals. The determining factors were found to be the amount of work he did in the vicinity of this room, (effectively zero) and the time he spent working in other places (about 300 days in over 50 locations). No need to cry over this one, I reduced his bill from ~$120K to ~$10K.