Tax Home

NedRN · Apr 28, 2014

If you don't have a residence to return to that you are incurring expenses on, there is no possibility of deducting expenses incurred for working away from home. These "duplicated" expenses are the basis for the Tax Advantage plans that agencies have. But if you are not "duplicating" expenses such as rent both at home and at an assignment, everything you receive from an agency is fully taxable as ordinary income. That includes provided housing or a housing stipend.

You will be "itinerant" (without a home) and thus are at home wherever you work.

circusdog64 · Apr 28, 2014

NedRN, I am new to this site, but as usual you response is concise and prompt. Thank you for taking the time to share your knowledge in these uncharted waters (at least they are for me).

NedRN · Apr 28, 2014

Just a bit more info to guide possible choices in maintaining a tax home, the tax benefit of having one is worth around $10,000 a year to most travelers (bankable real money). Thus if renting a room or whatever costs less than that, you are ahead. Oregon is a bit pricey in most places, but buying an inexpensive house and installing a roommate can result in a big win in net worth down the road and positive net income per year.