Temporary Living Expenses
ProSeries : 2011Am I doing the right thing? I had 3 potential clients who are autoworkers who were offered temporary jobs in another state with the understanding that the assignment would not last more than 6 months. Two months after working on the job, they were told they had to take an indefinite job assignment in a different state or lose their rights to any job. They were given an unaccountable allowance for the 1st move which was properly added to w-2 box 1. I told them I would deduct temporary living expenses if they qualified for misc. itemized deductions subject to 2% of AGI, Using the CONUS amt. for M&I and actual lodging expenses and travel for the time spent in the 1st state only, since it was a temporary assignment, but not for the second state, since the job was considered permanent (they all retain residence in their orginal state, so they would be filed as non-residents of their working states. They didn’t like that and went to JH or H&R and they got back to me and said the preparer deducted their living expenses for time spent in both states. Did I shoot myself in the foot and lose 3 clients. Sorry for the length of this question.


