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Carmen Ortiz

Do I have to report a temporary workplace relocation on my taxes?

I work for a national retail chain with stores all over the country. This past winter, my regular store in Florida closed down for around 3 months for a complete renovation. My company gave us three options: work at the closest store, take unpaid leave without any penalties, or choose to work at any other location in the country. Since I've been thinking about eventually relocating to Oregon, I decided to use this opportunity to work at one of our stores there for about 3 weeks to get a feel for the area. Management made it clear that since this was my choice (not a company requirement), they wouldn't cover any travel expenses, but mentioned we might need to report something on our taxes. Both Florida and Oregon don't have state income tax, but I still paid about $650 for flights and around $2100 for temporary housing during my time there. Do I need to report this temporary work location on my tax return? And more importantly, can I deduct these travel and lodging expenses from my taxable income for 2025?

MidnightRider

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This is a great question about temporary workplace expenses! Under current tax rules, commuting expenses (getting to and from your regular workplace) aren't deductible. However, your situation is a bit different. When you temporarily work at a location away from your regular workplace, those expenses might be deductible - but there are specific requirements. For this to qualify, the temporary assignment needs to be expected to last less than one year, and it must be far enough from your regular workplace that you can't reasonably commute daily. The key issue is that your relocation was voluntary rather than required by your employer. Generally, to deduct these expenses, the temporary assignment would need to be for your employer's convenience or requirement, not your personal choice. Since you chose to work in Oregon rather than at the nearest location (which would have been the company's preference), these would likely be considered personal expenses rather than business necessities. Unfortunately, after the Tax Cuts and Jobs Act of 2017, employees can no longer deduct unreimbursed job expenses on Schedule A anyway, so even if these qualified as legitimate business expenses, you wouldn't be able to deduct them as an employee.

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Andre Laurent

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Wait, so even if my job REQUIRES me to travel, I can't deduct those expenses if they don't reimburse me?? That seems really unfair. What about independent contractors or self-employed people? Do they have different rules?

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MidnightRider

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That's exactly right - employees can no longer deduct unreimbursed work expenses regardless of whether they're required by the employer. It was one of the significant changes that came with the 2017 tax law changes. Self-employed individuals and independent contractors operate under different rules. They can still deduct legitimate business expenses, including temporary workplace travel, on Schedule C. This is because they're running their own business rather than working as an employee. They can deduct expenses like transportation, lodging, and even partial meal costs when traveling for business purposes.

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I had a really similar situation last year and spent hours trying to figure out the tax implications. After going around in circles with online research, I finally used https://taxr.ai to analyze my situation. I uploaded my receipts and a letter from my employer about the temporary assignment, and it gave me a detailed breakdown of what I could and couldn't claim. The analysis showed me that while regular employees can't deduct these expenses anymore, I could still document everything in case my company provided any reimbursement later (which would be non-taxable if it qualified as a working condition fringe benefit). The tool also pointed out some company-specific benefits I didn't know about that partially offset my costs.

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Mei Wong

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Mei Wong

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If you're having trouble getting clear answers about your tax situation, I'd recommend trying to speak directly with the IRS. I know that sounds like a nightmare, but I used https://claimyr.com to get through to them when I had a similar question about temporary work locations across state lines. You can see how it works here: https://youtu.be/_kiP6q8DX5c I spent weeks trying to get through on my own with no luck, but with Claimyr I had an actual IRS agent on the phone within about 15 minutes. The agent was able to tell me exactly how to handle my situation with temporary work in multiple states, and it saved me from making a mistake that could have triggered an audit.

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PixelWarrior

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Amara Adebayo

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Does this service actually work for complex questions like this? I thought the IRS phone people just handle basic stuff and tell you to consult a tax professional for anything complicated.

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It works because they use an automated system to navigate the IRS phone tree and wait on hold for you. Then when they reach a human, they call you and connect you. It's not magic - just technology handling the frustrating waiting part. The key is they're continuously dialing, which most people don't have time for. The IRS agents absolutely can answer complex questions - that's literally their job. While they won't give "tax planning advice," they can and do clarify how specific situations should be handled under tax law. My question about multi-state temporary work locations was answered clearly and specifically, with references to the relevant tax publications I could read for more details.

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PixelWarrior

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The other commenters covered the tax deduction part, but I want to address the reporting question. You should definitely keep records of where you worked and for how long, especially for situations crossing state lines. Even though both Florida and Oregon don't have income tax, if you had worked in a state that does have income tax (like California or New York), you would potentially need to file a nonresident state tax return for the income earned while physically working there. Some states have reciprocity agreements or minimum thresholds before filing is required, but the rules vary widely. For future reference, always document these temporary work locations carefully - dates, locations, and any communication from your employer about the arrangement. This documentation can be crucial if questions come up later.

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Carmen Ortiz

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Thanks for that additional info! I didn't even think about the state tax implications if I had chosen a different state. If I do something similar in the future and pick a state WITH income tax, how long would I need to work there before I'd have to file a tax return for that state?

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It varies significantly by state. Some states require you to file a nonresident return from day one, regardless of how little you earn there. Others have minimum thresholds like working more than 30 days or earning above a certain amount. For example, New York technically requires nonresident income tax filing for any work performed in the state, even for a single day. Other states might have a 15-30 day grace period. Some have minimum earning thresholds ranging from $1,000 to $3,000 before you need to file. There are also a few states with reciprocity agreements where you might only pay tax to your home state.

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Your company should issue you a W-2 that includes ALL of your wages for the year, regardless of which location you worked at. Since both states have no income tax, your federal taxes won't change. One thing nobody's mentioned - check if there are any local city taxes that might apply! Some cities have their own income taxes even in states without state income tax. For example, some Oregon cities have local taxes even though the state doesn't.

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Dylan Evans

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This is a really good point! Seattle has that head tax thing that even non-residents have to pay sometimes. OP should check on local taxes for wherever they worked.

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