Tax Question for Regional Pilots

[XPOO]

No caffeine, but alcohol is ok? Bottle to throttle my friend!

 

[atpcliff]

Hi!

I drink some once in awhile. Other than that, I'm about the most anti-drug person in America. I don't take ANYTHING unless the doctor makes me, and that includes tobacco and caffeine.

Legalizing the drugs that are currently "illegal" would go a long way towards curing tons of social problems, including much violent crime and tons of wasted taxpayer monies going to drug interdiction in foreign lands.

The Chief of Police association in the US is FOR legalizing drugs.

"Drugs are dangerous"! Yes, Morphine is "dangerous", but it's not illegal, is it? Is Morphine more dangerous, or pot?

What is the number 1 accidental killer in the US? Drunken drivers. Is alchohol illegal?

I'm with the Libertarians on personal freedoms. Let's let people do stuff, and hold them personally accountable if things go wrong.

cliff
GRB

 

[BoilerUP]

Lets say company TAFB is 80 hrs. 80*$1.50(ASA company rate) = 120
$229-$120=$109 on ONE 4 day trip is tax deductable.
Add up the whole year's difference and multiply by 0.75 (transportation industry rate) and that is tax deductable.

Why do you multiply the whole year's difference by .75 to get your actual deduction? I thought you could deduct 100% of the difference...

 

[flyinghunter]

I've been told we can also deduct internet expenses, since I am required to keep up to date on an internet message board per company policy. I also watch the weather channel before I leave for a trip to get a better idea of weather conditions, so that's deductable too. At least from what I've heard, anybody else hear stuff like this?

 

[regionalcap]

Why do you multiply the whole year's difference by .75 to get your actual deduction? I thought you could deduct 100% of the difference...

IRS rules...can only claim 75%

 

[marycon]

75% deduction of meal expenses: IRS publication 463 page 12 left hand column under "individuals subject to "hours of service" limitations"


As far as internet and cell phone deductions, while at this moment I cannot quote verbatim and perhaps someone else could provide chapter and verse, I believe the ability to deduct these type of expenses falls under the test of; the service is neccessary for your employment and your employer does not provide this service to you. So obviously we all need a phone to be contactable but the company doesn't provide one for you so a certain percentage could be deducted as work expense. As far as internet, well most companies provide computers and internet access at work for bidding etc. and technically probably couldn't be deductible.

 

[BoilerUP]

75% deduction of meal expenses: IRS publication 463 page 12 left hand column under "individuals subject to "hours of service" limitations"

Thank you!!! I downloaded a bunch of those pubs earlier today but I must have missed that part.

 

[Puck Mugger]

ALLOWED WORK RELATED EXPENSES

Union Dues
Sunglasses
Uniforms
Haircuts (required hair length per SPs)
Belts
Dry Cleaning
Starch
Shoe Polish
Shoes
Roller Bag
Chart Protectors
Internet
Cell Phone
Alarm Clock
Batteries
Watch
Pens
Flight Bag
Highlighters
Fax Machine (faxing requests to CS)
Per Diem not reimbursed (difference between GSA alowable rates and company paid perdiem)
Indusrty Publications (Flying, AOPA, etc.)

OTHER DEDUCTIONS

Medical Premiums
Medical Co Payments
Perscriptions
Child care
Education expenses for kids (Full day kindergarten)
Last years tax preparation (turbo tax or accountant)

I could go on and on.

 

[regionalcap]

www.crewtaxes.com

For 59 bucks, they will do your employee deductions and per diem calculations. I would rather have a professional back me up on these deductions in case of getting audited.

 

[Airboss]

Just remember you can deduct ANYTHING....its just possible to get audited if you go overboard.
IRS allows percentage deductions..i.e use your cell 50% of the time for work, then you can deduct 50% of its cost. Just be able to prove all of these deductions and you will have no problems.

http://biz.yahoo.com/weekend/crazytax_1.html
look at these 10 craziest writeoffs.

 

[atpcliff]

Hi!

Perdiem update:
I used the average $52/58 per day perdiem numbers that XPOO showed me how to find. In my research I also found out you can deduct perdiem on an "out-and-back" (no overnight stay) if you're gone longer than 12 hours from your base.

My IRS allowable perdiem for the year was $5438. I received only $3323.43 from the company, so I was able to deduct a decent amount of perdiem.

Hope YOUR taxes go OK!
cliff
GRB

PS-I think the tax system stinks! People with illegal income pay nothing, and the richest people pay accounting firms a lot to hide their income, often blatantly illegally.

My 1st choice is to get rid of Federal Income Tax COMPLETELY and replace it either with a National VAT or Sales Tax. I would exempt food, clothing and medicine. No tax forms, a MUCH smaller IRS, and if you save your money, you pay no tax. All the illegal monies are taxed when the criminals buy stuff.

2nd choice is a FLAT tax of ALL income. By ALL income I mean ALL monies received. I would allow 1 deduction, of $5000 per person, so a family of 4 would pay no income tax on their first $20K. There would be no Estate Tax, because when you received money in an estate, it would be taxed as income. No bullcrap offshore money hiding, or any of those actually legal deductions that are made up by Congress to shelter their rich friends.

The Flat Tax has been working phenomenally well in the former Eastern Block countries. It's simple, easy to understand, and the working folks like myself don't feel like the rich are ripping them off.

 

[Smarta$$]

How about meals during training if your company does not provide you with per diem before your checkride. Either with reciepts or with the 52.00 a day allowance?

Thanks

 

[fastback]

A lot of great info here, and thanks to all. Another question, just looking for a general answer. I'm a first-year FO, ballpark of $20 grand in 06. At that low income level, is it even worth it to itemize? I don't have mortage payments or students loans, or anything else to itemize. If anyone else in a similar situation has done the numbers and found that it was, or was not a good idea to itemize I'd appreciate it.

 

[WestSide]

Does anybody know if box 12 section L on your W2 is your nontaxable per diem for the year?

 

[optimater]

Does anybody know if box 12 section L on your W2 is your nontaxable per diem for the year?

yes, 12L is your nontaxable.

 

[rightrudder]

A lot of great info here, and thanks to all. Another question, just looking for a general answer. I'm a first-year FO, ballpark of $20 grand in 06. At that low income level, is it even worth it to itemize? I don't have mortage payments or students loans, or anything else to itemize. If anyone else in a similar situation has done the numbers and found that it was, or was not a good idea to itemize I'd appreciate it.

If you are single, no kids, the standard deduction is $5150. You'd have to have deductions that exceed that amount to make it worthwhile to itemize instead of taking the std deduction.