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Tax Law (Questions About Taxes)/W2-Contractor with per diem, changing tax home


For the past eleven months I've been working in another state as a W-2 contractor with my pay split between per diem and taxable wages. That contract is ending in a week.

However, I just learned that my rent on my original "home" apartment is going up significantly. At the same time completely out-of-the-blue, I was offered a one year (minus a day) contract with a different company in a different state with a similar W-2 wager/per diem arrangement.

Would moving my original tax home cause per diem issues?

To make it more complicated, a soon-to-be former colleague offered to rent me an apartment he owns in the town I'm currently in (versus my original tax home.) I've grown to like this "new" town but I'm worried that would create even more confusion with my tax home and may make me an "itinerant" worker.

Would the best approach simply to pay the increased rent at my original tax home (which would also greatly reduce all the paperwork and hastles in changing addresses, insurances, voter registration and so forth.)


Thanks for your question.

As long as you don't change your residence before the end of the current contract, there shouldn't be antsy per diem issues. Being classified as an itinerant is not likely an issue as long as you have an actual residence you can prove.

It's your decision about whether to move your tax home. Weigh the pros and cons and make the decision.

Hope this helps.

John Stancil, CPA  

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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