TaxProTalk.com

Client was assigned to work in a foreign country for 6 months in 2019. He does not qualify for FEIE due to the short period of time spent oversea. And there is no FTC either as he did not need to pay tax to the foreign government.

Would employee travel expenses be a possible deductible item to him though? His living expenses during the 6 months were not reimbursed by the employer. Therefore, is he allowed to use the per diem rate allowed by the IRS to claim meals and lodging as an itemized deduction?

I understand unreimbursed employee expenses are not deductible on the Federal tax return anymore. But it is still an allowable item in the California itemized schedule.

From the sound of things there was no reporting of meals and lodging by your client to his employer. As a result it is my understanding that the per diem rates cannot be used to calculate itemized deductions .

I I do think that your client qualifies to itemize meals and lodging as itemized deductions on the California return .

Are you certain that your client did not receive a flat allowance for the overseas assignment that covered air fare ,meals and lodging ?

lucyko wrote:From the sound of things there was no reporting of meals and lodging by your client to his employer. As a result it is my understanding that the per diem rates cannot be used to calculate itemized deductions .

I I do think that your client qualifies to itemize meals and lodging as itemized deductions on the California return .

Are you certain that your client did not receive a flat allowance for the overseas assignment that covered air fare ,meals and lodging ?

Thank you. I will have to check with him if his employer had provided any allowance for his oversea living and travel expenses.

I discussed with someone in tax preparation business too. He said the oversea living expenses may be deductible only if the employee maintained a household in the US during the time when he was oversea, such as kept paying rent for an apartment that he would return to after the assignment was completed. However, if the employee did not maintain a household in the US while he was away, the oversea living expenses were not deductible. Is he correct?