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!

I'm dealing with a similar situation right now - my company is relocating me to Austin for 18 months and also backing out of their housing commitment. What really helped me was documenting everything in writing first. I went back through all my emails and found where they originally promised housing support, then calculated the total financial impact. When I presented this to my manager, I emphasized how this unexpected expense affects my ability to focus on the project versus worrying about finances. I also pointed out that other team members who live locally don't have this additional burden, which creates an unfair situation. I'm still negotiating, but they've agreed to at least cover my travel costs home every other weekend and are considering a monthly "hardship allowance." The key seems to be showing them concrete numbers and framing it as removing barriers to project success rather than just asking for money. Have you tried reaching out to other employees who've been in similar situations at your company? Sometimes there are informal precedents that HR doesn't advertise but will honor if you know to ask.

I've been following this thread and wanted to add another perspective that might help. I'm a tax preparer and see situations like this all the time since the TCJA changes. One approach that's sometimes overlooked is negotiating for your employer to cover this as a "business travel" expense rather than relocation. If your assignment is truly temporary (sounds like 14 months qualifies), and you're maintaining your primary residence in Dallas, there might be ways to structure this differently. Some companies will pay for extended stay hotels or corporate housing for long-term assignments, which they can deduct as business expenses. This might be easier for them to approve than direct cash reimbursements. You could also explore whether they'd be willing to book and pay for the housing directly rather than reimbursing you. Another angle: if you're going to be managing other employees on this project, you might have some leverage to negotiate better terms. Project managers are expensive to replace mid-stream, especially on critical assignments. Document every conversation about this and keep pushing. The worst they can say is no, but you might be surprised how much companies will budge when faced with the real possibility of losing key people over what amounts to an accounting decision on their end.

I'm going through almost the exact same situation right now! My company is relocating me to Denver for 16 months and also pulled the "budget constraints" excuse after initially promising housing support. It's so frustrating how they can just change the terms after you've already committed to the project. What's been helpful for me is treating this like a business negotiation rather than asking for a favor. I put together a one-page summary showing: - The total cost impact ($1700 x 14 months = $23,800) - What it would cost them to recruit and train a replacement if I declined - How this affects my ability to focus on project deliverables vs. financial stress I also found out that our company policy manual has language about "ensuring employee success on critical assignments" which I'm using to support my case. Sometimes there are policies buried in employee handbooks that HR forgets about but will honor if you reference them specifically. Still negotiating, but they've already agreed to cover my flights home twice a month and are "reviewing options" for housing assistance. The key seems to be making it clear that this isn't just about the money - it's about removing barriers to project success. Definitely don't give up on this! Companies hate losing experienced project managers mid-assignment, and $1700/month is nothing compared to what they'd spend on recruitment and training.