Contract work - what is deductible?

I found some temporary work as an independent contractor in a city 900 miles away. However, I am only going to be working two days per week. On the two days I work, they give me a $60 per diem, to cover motel and food. After 6 weeks, the assignment will end, and I will return home.

- Can I deduct the travel expense to get there (and back)? I am driving my own car.

- Is any of the motel and/or food costs deductible while I'm working there? Like I said, they pay me a per diem on the 2 days I work, but I will be paying my own motel and food costs on the other 5 days of the week. (unfortunately, flying in every week is not an option, because the 2 days i work are scattered within the week).

Also, for tax purposes, these deductions would be a business expense, for when I report SE income, right?

The $60 per diem, or $120 per week for 6 weeks, will get added to the

1099-MISC. Or at it least it should be.

You can only deduct mileage from your regular place of business to a customer site. So if you can establish a home office and you actually do your "main" work from there, then you can deduct the mileage. Main work is an ambiguous term. It could mean most of the work, or administrative work (while you meet clients out of the home or at their place of operation, like a plumber who works 1 hour in the home, and 7 hours out of the home). I think you can even have a home office and go to a client's site for a few weeks.

I'm not sure if your situation will meet this description. But maybe you can make it work. If you do other contract work out of your home, then that's an easy way to do it.

As long as you have a home office you can deduct motel costs, meals and entertainment (although only half of it is deductible). Other things you deduct are business license, office supplies, postage stamps.

Remember, SE tax is about 15.3% of your income after expenses. It's a lot of money, so don't be surprised at the end of the year.

You can deduct your personal health insurance as well, but only up to your income.