Wednesday, January 25, 2017

Q.  My husband and I began full-time RVing in 2003 and have done a variety of paid work camping through the years. We have never felt that any of our travel expense was deductible. We now own an RV site in Florida where we spend Oct.-April and are legal residents of Florida. After 7 summers working a paid seasonal job in Tennessee, we traveled to Wyoming to take a Memorial Day to Labor Day volunteer position as campground hosts in a state park. This coming summer we will be doing the same in Utah. Are any of our travel expenses deductible?  Thank you.

A.  Unfortunately the cost of getting to your site is considered commuting and therefore is non-deductible. If your volunteer "job" is for a charity formed under IRC 501(c), and you incur travel expenses on behalf of the charity and are non-reimbursed for this, your mileage may be deductible if all criteria is met.

For further information please refer to Pub. 526 page 19. Thanks for writing and enjoy your summer travels.

Tuesday, January 24, 2017

 Q.  My husband and I have lived renting in Pennsylvania for the last 6 years (where we have filed all our taxes), and my husband works from home as a software developer, for a Texas based company.  We do not own a RV/boat (or any home in the US), but we have decided to travel around the country in our car (and by plane sometimes) and use Airbnb or monthly rentals to live in until we find a place we love.

        So have been thinking of using one of the forwarding mail services available in Florida to establish our residency (St. Brendans Isle, Escapees Home, My RV Mail,...), while traveling the country.

Our questions are: 
            1) Is the address provided by the forwarding mail services useful for tax return purposes? 
            2) Do we have to file a tax return, in each state we visit if he works during our stay in said state? 

A.  I cannot attest to mail forwarding services since that is not my expertise. Each state has different residency requirements, & thresholds for filing income tax return requirements.

On the left of my blog you will notice links to all 50 states. There you can research the requirements for each state. I suggest you start with Texas since that has been the main source of your income.

For federal tax purposes, all income is reportable, and may or may not be taxable. Each state has its own filing requirements which are usually based on source income. Where you happen to be when the income is earned is irrelevant. You will need to research the filing requirement for each state your earn income in. Some states require a return if you are required to file a federal return. Other states require a return if your income is equal to or above a certain threshold. Of course if any state withholds state income tax, you will need to file a return if only to get a refund. 

I hope this guidance is helpful. Enjoy your travels throughout the US.!