Discussion:Temporary Housing for Student Co-op Assignment
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Discussion Forum Index --> Tax Questions --> Temporary Housing for Student Co-op Assignment
| February 27, 2007 | |
| Hi - My son is an engineering student at the local university. Last year he quit his on campus job to accept a temporary 5 month engineering assignment with a major utility, located 70 miles away. The utility paid his housing but included the value of the housing in Box 1 of his W2 form. I think this situation qualifies as temporary employment meaning he can deduct the value of the housing on Schedule A. Am I correct in uderstanding the rules?
Also can he take a per diem meal allowance? Thanks in Advance, Like father like son, an engineer in Ohio | |
| 10 March 2007 | |
| "I think this situation qualifies as temporary employment meaning he can deduct the value of the housing on Schedule A. Am I correct in uderstanding the rules?"
Yes, you are correct. Your son would report the housing expense on Form 2106 or 2106-EZ, and then carry over the amount to Schedule A, line 20, where they will be subject to the 2% of AGI limitation. More than likely, he will not have enough itemized deductions to exceed the standard deduction amount for his filing status, so he will probably just end up taking the standard deduction amount. "Also can he take a per diem meal allowance?" Yes, but only if he can prove the time, place and business purpose of the travel by having adequate records. Your son would report the per diem expense on Form 2106 or 2106-EZ, where they are subject to a 50% limitation, and then carry over the amount to Schedule A, line 20, where they will be subject to the 2% of AGI limitation. Make sure that your son has a signed and dated letter on company letterhead from the employer that states the job is temporary. More than likely, your son will not have enough itemized deductions from the housing and meals plus any other itemized deductions to exceed the standard deduction amount for his filing status, so he will probably just end up taking the standard deduction amount. | |
