Tax Home

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DEFINITION of 'Tax Home'

The general locality of an individual's primary place of work. A person's tax home is the city or general vicinity where his or her primary place of business or work is located, regardless of the location of the individual's residence, and has an effect on his/her tax deductions for business travel. The Internal Revenue Service considers an employee to be traveling away from home if his/her business obligations require him/her to be away from his/her tax home for a period longer than an ordinary work day.

BREAKING DOWN 'Tax Home'

If an employee works in New York City, for example, but lives in New Jersey, the tax home is New York City. In this example, travel, meals and lodging expenses in New York City cannot be deducted since that is the person's tax home. Travel expenses to New Jersey on the weekends cannot be deducted since they would not be work-related expenses. If the same person travels for work to Chicago, however, any travel, meals and lodging expenses may be deducted.

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