<p>The only NRAs who have no tax home are those who intend to be in the US for less than a full year, is not employed, and is not in the US for more than 183 days during the year (and thus meets the substantial presence test).</p>
<p>For a US resident of citizen, this is temporary employment away from the tax home. Because being a student doesn’t constitute a trade or business, the tax home is their home of record - in many cases, where their parents/family lives. If this were not the case, the IRS would not indicate that travel to/from that residence qualifies as a “educational expense” eligible for reimbursement from a Qualified Tuition Plan (529 plans).</p>
<p>Mom2collegekids - yes, a housing allowance for a summer internship would not be taxable - but only to the extent it is used for such housing or other allowable expenses.</p>