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The expenses that are allowable for you to claim are first based on your reason for being in NJ working.
If the assignment is expected at its start to last more than a year (even if it is actually terminated before one year), no deductions are allowed. If an assignment is expected at the outset to last less than one year, deductions for living expenses are allowable. However, if it becomes clear during the assignment that it will last more than one year, no deductions are allowable from the time that the expectation changed.
What determines a temporary versus an indefinite assignment is the intent of the taxpayer.
If you were reimbursed for travel or transportation under an accountable plan, but at a per diem or mileage rate that exceeds the Federal rate, the excess should be included in the wages on your Form W-2. The amount up to the allowance would be reported in box 12 of your Form W-2. If your actual expenses exceed the Federal rate, you must itemize your deductions to deduct the excess you must use Form 2106 or Form 2106-EZ to figure your deduction then show that on Schedule A as a miscellaneous itemized deduction subject to the 2% of adjusted gross income floor.
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