Away From Home

What Does "Away From Home" Mean?

"Away from home" is a phrase utilized by the Internal Revenue Service (IRS) to express that a taxpayer isn't inside commuting distance from home. In the event that the taxpayer works from home for longer than a normal business day and requires rest, then the associated costs are tax deductible. In the event that the taxpayer works a distance that is inside commuting distance from home, not away from home, however decides to rest in a place that isn't home, the associated costs are not deductible. The IRS determines that in this case the distance is from the "tax home," not really the genuine domicile of the taxpayer.

Seeing Away From Home

Away from home is a phrase with specific meaning to the Internal Revenue Service (IRS). The phrase alludes to a specific separation from the taxpayer's tax home that is assumed to be too far to drive home consistently. A taxpayer can deduct travel, lodging and food expenses while working away from home, however not while working a distance that is viewed as short to the point of commuting home, even assuming the taxpayer stays in an inn and pays for dinners to try not to need to drive home. An exception to this is an endless work assignment, which is a work assignment that endures one year or longer. Travel, lodging and food expenses are not deductible for an endless work assignment. Deductible expenses incorporate travel to and from the tax home, lodging, food, dry cleaning or laundry, utilization of the taxpayer's vehicle at the work location, taxis or public transportation costs at the work location, business calls and tips paid out at the work location.

An employee deducts away from home expenses on IRS Form 2106. A person who is self-employed deducts away from home expenses on IRS Form 1040 Schedule C.

Tax Home

To decide if a taxpayer is away from home, the IRS considers the tax home, which is the overall location or area of where the taxpayer normally works or carries on with work. This might be where the taxpayer really resides.

For instance, in the event that the taxpayer lives in Detroit yet works in Toledo, and stays in an inn in Toledo during the week however goes home consistently to Detroit, the taxpayer's tax home is viewed as Toledo. None of the movement expenses from Detroit to Toledo or the lodging and food expenses in Toledo are deductible, on the grounds that the taxpayer works in their tax home paying little heed to where they reside.

Away from home in the above model would show a separation from Toledo that was not reasonable to drive back each night, since Toledo is the tax home.