"Breaks after year is up"

"Breaks after year is up"

Posted by gdh9257 on Apr 26, 2017 2:16 pm

How long do you have to be out of the area you've been in for a year? Do you have to go back to where your tax home is? Does it have to be at least 50 miles from where your assignment was during the year? I have extended at the same hospital 3 times and it is time to take my "break". I am a first time traveler so I am still learning the "rules". What if you travel back and forth to your tax home during that year? I live 2.5 hrs away from my current assignment and have been driving back to my tax home on my days off this whole time. Do those days that I was home count towards the time I need to be away? This is all so confusing to me and it seems like nobody has a concrete answer. Thanks! 

Re: "Breaks after year is up"

Posted by Joseph Smith on Apr 26, 2017 8:49 pm

Going home frequently does not change the fact that you have continuous employment in the same area. Your break, if you intend to return to the area for another 12 months needs to be at least seven months, preferably a full 12. Remember that a tax residence is first and foremost the place where you make the majority of your income on an annual frequent basis. This is why there are limitations on temporary assignments.

There is no such thing as a 50 mile will. You will need to be far enough away so that you cannot live in the middle of the two assignments and have a reasonable commute
Joseph Smith EA/RRT/ MTax
Enrolled Agent, Respiratory Therapist
Admitted to practice before the IRS


Posted by gdh9257 on Apr 27, 2017 12:59 am

Thank you so much for your reply! See, now this is what I'm talking about. I keep getting different answers. No other traveler that I have talked to has ever been away for that long. Everyone says they take another 8 or 13 week assignment somewhere else then come back. Also, some just resign with a different company. What if you do not have a job where your "tax home" is? But your spouse does so you are still duplicating expenses right? Your still having to make a house payment and everything else.