Tax Question regarding housing benefit for internship

[allyphoe]

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People without a regular place of work can still have a tax home if they have one place they regularly live and maintain a residence that they keep going back to between assignments.

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<p>They can have one, but they don’t necessarily have one.

These and many other court cases seem to confirm the principle that the tax concept of a “tax home” is inextricably bound up with the idea of the taxpayer’s employment or engaging in a trade or business, or engaging in an activity for which deductions are allowed under I.R.C. § 162. The absence of such employment or trade or business or activity means that the taxpayer’s tax home is not necessarily located where he resides. In the absence of such employment or trade or business or activity, the taxpayer may have no tax home at all.
The activity of being a student does not constitute a trade or business under the Internal Revenue Code, and thus, in and of itself, cannot establish a tax home.

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