Travel expenses

[DonB]

He was an Utah resident working as a contractor for a few months in CA? That sounds like less than a year to me. Sounds like temporary work location to me. Did he plan on making that his permanent home?
If that was indeed determined to be a temporary work location then he is allowed mileage for the trips to sell and deliver, per diem for meals and actual expenses for lodging.
H did have a job in Utah before and returned to his home where it sounds like his wife remained.

I'm starting to change my mind-- But consider 1. He was a student working part time in Utah; If this establishes his tax home I'm starting to be convinced. Next, is he duplicating living expenses while in California? If yes, I'm on board.

[Kent]

The unfortunate fact is that his total income, for the year, was so low that he doesn't owe any income taxes, but does owe $1,400 in self-employment taxes. If the IRS came looking around I have a strong hunch that they would rule that he was an employee and not an independent contractor. It is frustrating that companies continue reporting "employees" as "independent contractors" so that they can get away with not paying the match on social security and medicare and other payroll-related taxes.

[Kent]

His wife went with him to California and as result they didn't have any duplicate expenses in Utah while they both lived in California. I realize having duplicate expenses is an indicator of being away from one's tax home; however, I could not find that one must have duplicate expenses in order to qualify. Sure glad that the vast majority of my clients do not have uncertain tax situations.

[Burke]

The unfortunate fact is that his total income, for the year, was so low that he doesn't owe any income taxes, but does owe $1,400 in self-employment taxes. If the IRS came looking around I have a strong hunch that they would rule that he was an employee and not an independent contractor. It is frustrating that companies continue reporting "employees" as "independent contractors" so that they can get away with not paying the match on social security and medicare and other payroll-related taxes.

In this case, IC might be justified. Did they pay him by the hour? I am guessing on commission. Did they control his hours, who he called on, or the area in which he worked? Did they have an office/location in California to which he reported? And so forth. If not, then he was self-employed. If a very good case can be made to treat him as an employee, then you can file a form with the tax return to treat the income as wages and show it on Line 7. After all, he no longer works there and is in no risk of losing his job. See IRS notices and instructions for Form 8919.

[AJsTax]

still not sold

I am not sold your reasons to make that not a temporary work location. And you example of oil workers does not hold water. we have many in our area and most of them get non taxable per diem for both meals and lodging from their employer. it would not be non taxable if it was not a temporary work location, would it?!

[Kent]

Thank you for all of the replies. I completed his return and did not claim any away-from-home expenses.

[Burke]

I am not sold your reasons to make that not a temporary work location. And you example of oil workers does not hold water. we have many in our area and most of them get non taxable per diem for both meals and lodging from their employer. it would not be non taxable if it was not a temporary work location, would it?!

It was not stated in the OP whether the TP had any income from Employer #2 prior to being assigned to California. I was assuming he did not. So he began employment in the CA location and that would be his tax home.