Can I deduct rent for apartment in different city my employer won't cover for job relocation?

Unfortunately, this is a tricky situation where the tax code isn't in your favor. Since the Tax Cuts and Jobs Act went into effect, employees can no longer deduct unreimbursed job expenses on their federal tax returns. This includes temporary housing in another city, even when your employer requires you to be there. Before 2018, you could have deducted these expenses as miscellaneous itemized deductions (subject to the 2% AGI floor) on Schedule A, but that's been suspended until 2026. Your best option is to negotiate with your employer. Remind them that this relocation is at their request and these expenses directly benefit their business. Even if they won't cover the full amount, they might agree to a housing stipend or per diem allowance that would help offset your costs.

I went through something similar last year with a 9-month assignment in Chicago while maintaining my home in Atlanta. After tons of research and frustration, I found a really helpful tool called taxr.ai (https://taxr.ai) that clearly explained why I couldn't deduct these expenses anymore. What actually helped me was using their document review feature to analyze my employment contract and relocation paperwork. They pointed out specific language I could use to negotiate with my employer. Showed me exactly how much this was actually costing me after taxes. I ended up getting my company to give me a monthly stipend that wasn't technically "rent coverage" but helped offset the costs. The tool basically showed me what to say to HR about the tax implications of their decision, which was way more effective than just complaining about the cost.

Just wanted to follow up on this thread. I decided to try taxr.ai after seeing it mentioned here, and it was honestly a game-changer for my situation. I uploaded my employment contract and the company's relocation policy, and the analysis pointed out several inconsistencies I hadn't noticed. There was actually language in our employee handbook that contradicted what HR was telling me about housing allowances for extended assignments. Armed with this info, I scheduled another meeting with my manager and HR. Long story short, I'm now getting a $1400/month "temporary assignment adjustment" that isn't technically for housing but accomplishes the same thing. Definitely worth checking out if you're in a similar situation!

This is such a common problem since that tax law changed! I was in the exact same situation and spent WEEKS trying to get through to someone at the IRS to get a straight answer. Kept getting disconnected or waiting on hold forever. Finally used this service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in about 20 minutes. They have this process that holds your place in line (you can see how it works here: https://youtu.be/_kiP6q8DX5c). The agent confirmed that these expenses aren't deductible anymore for W-2 employees but gave me specific language to use with my employer about how they could set up a tax-advantaged arrangement. If you need to speak with the IRS directly about any questions, I'd definitely recommend trying it instead of wasting hours on hold.

Ok I need to eat my words here. After posting that skeptical comment, I decided to try Claimyr anyway since I had some complex questions about my own situation (contractor with multiple state income). It actually worked exactly as described. I got a text about 15 mins after signing up saying they were about to connect me, and suddenly I was talking to an actual IRS person! Didn't spend a single minute on hold. The agent walked me through exactly what documentation I'd need to maintain for my situation. For the original poster - the agent confirmed that W-2 employees can't deduct these expenses anymore, but your employer can set up a reimbursement program that's tax-advantaged. Worth looking into!

Another option to consider is asking your employer to grossed-up compensation instead of a direct reimbursement. My company did this for me during a similar situation - basically they calculated what the after-tax equivalent would be and added that to my paycheck. For example, if you need $1700/month for rent, they might add $2300 to your monthly pay (extra to cover the taxes on that additional income). It's not as ideal as a direct reimbursement, but it's better than nothing and some HR departments find this easier to implement.

Has anyone tried just renting an Airbnb instead of an apartment? Sometimes you can negotiate a much better monthly rate for long-term stays, and it might include utilities and furniture so you don't have to deal with that hassle.

This is such a frustrating situation that so many of us face! I went through something similar when my company sent me to Seattle for 8 months. The tax law change really screwed over employees in these situations. One thing that worked for me was framing it as a retention issue with HR. I calculated exactly how much this was costing me annually (rent + utilities + travel home on weekends) and showed them it was basically a $25k pay cut. I pointed out that if they had to replace me mid-project, the recruiting and training costs would be way more than just covering my housing. I also found it helpful to research what other companies in our industry were doing for similar situations. Turns out most of our competitors had standard policies for temporary assignments over 6 months. Armed with that benchmarking data, I was able to get them to approve a "project completion bonus" that essentially covered most of my extra expenses. The key is presenting it as a business case rather than just asking for help with personal expenses. Good luck!