Claiming Commuting Expenses?

[TonkaF16]

I know there are a lot of pros out there that have commuting down to a science, so here we go:

We Live in SLC, Looks like the job will be in OAK, PHX, or maybe LAS (that narrows the airline down quite a bit)

If I have to commute, can we claim the hotels/crashpad, phone expenses, and all the like or is this a no no.

Thanks in advance,

Tonka

 

[Rez O. Lewshun]

no...

 

[Juniority]

Yes, the answer is no.

If you're an airline pilot commuting to your domicile, the IRS says you live there for work purposes. Now, if you happen to be an Air National Guard pilot in addition to being a commuting airline pilot, the IRS can't have it both ways. They can't say you live in Oakland for your airline job and that you live in Salt Lake for your Guard job. I claim every single dime of my "reverse commute" from my airline domicile to my Guard job in my home town. Just my little way of sticking it to the man.

And don't anyone bother trying to say you can't do that because I've got the precedence setting law case right and the IRS ruling that followed it in my files and so does my tax guy (who just happens to live in SLC).

 

[Stukadriver]

I second the no. I fought that fight a few times, but the IRS will only let you deduct commuting expenses when you commute between different locations for work, i.e., different offices, airports, etc. in the same town where you are expected to report for work. Since you have only one base and live elsewhere by choice, you can't deduct any of the expenses. Romer & Co. or similar aviation tax experts could tell you what you can deduct, like supplies used only for your job, but I think even these are subject to the 2% limitation.

I am, however, no expert in the accounting field, FWIW.

 

[Stukadriver]

Are you a new hire? I think you can deduct the hotel stay for your interview (check the pub on the IRS website) and any other job-seeking expenses you may have incurred, provided you have reciepts.

 

[Hugh Jorgan]

Of course there are always exceptions to rules... I quite legally claimed all of my commuting expenses, crashpad, vehicle, etc when I held a domicile to which I commuted for a period of less than one year. A "temporary" assignment is one where you can do this. If you happen to have one domicile for less than a full year, it's legal.

 

[calfo]

Are you a new hire? I think you can deduct the hotel stay for your interview (check the pub on the IRS website) and any other job-seeking expenses you may have incurred, provided you have reciepts.

Don't forget to deduct the type rating!

 

[TonkaF16]

Juniority,

You nailed my situation.

Reserve job at Hill, airline job elsewhere.

It sounds like you fought the man and won.

Does the IRS accept your precedence and have subsequently backed off or will they flag me next year and I will have to endure the same pain.

Thanks

 

[TonkaF16]

Calfo,

Thanks, I totally spaced on that (the type).

Can I assume interview prep falls into this category?

Tonka

 

[LearLove]

my tax guy says you can for the first 18 months after you get displaced from one base to another - example: you live in JAX and are based in JAX, company closes or downsizes JAX and you get bumped to ATL. For the first 18 months you can claim then the govt. expects you to either move or suck it up and say your a commuter by choise.

just saying what he (my tax guy) told me - he does hunderds on airline employees taxes.

 

[Eaglepuke]

So if you change domiciles every year, you can deduct the crashpad. Interesting.

 

[Lebowski]

I believe you can also deduct the DIFFERENCE between your airline per diem and the IRS standard per-diem (for meals) for a given city. For example, let's say your airline pays you $35 per day for per diem, and you have an overnight in SFO, and let's also say that the IRS-standard per-diem is $60 for meals for SFO (I have no idea what the actual figure is). You can deduct the difference ($25) for that overnight. If you have lots of overnight trips, it can end up making a big difference.

Maybe someone who is more tax-savvy than I am can verify that I have the basic idea right. I think that's one thing that PilotTax.com does for you. I don't use PilotTax.com, but my tax person basically did this same thing for me.

Lebowski

 

[crashpad]

Lebowski is correct and man, it can really add up. Don't try and do it yourself with Turbo-Dolt....get a real avaiation accountant. Mine charges $90-115 every year and I get a truck load of money dumped in my mailbox by March 1st.

 

[RIOtoPilot]

Per Diem

Lebowski - you can deduct 75% of the difference of paid per diem and government standard per diem. However, that is a bit of a tangent to the orginal thread question.
Tonka - basically, if you have two jobs (guard and airline), you deduct transportation expenses from one to the other. Gas, rental cars, airline fares, mileage if you drive, etc are acceptable.

 

[TonkaF16]

Great posts

AF last 15 years so TurboTax covered April events without a hitch

Sounds like things are about to get a bit more complicated (in a good way)

I'm get ahead of myself, still no "official" word

If I get a letter this week my next thread will be "claiming expenses while operating as a self employed over the road trucker"

Let’s hope it doesn’t come to that

 

[J32driver]

Everything in this thread is correct. Turbotax works just fine. It recongnizes the differences for transportation workers and figures the greater deductions.

I used the "less than 12 months" thing last year and was able to deduct 10 months worth of commuting expenses. KA-CHING!

 

[Stukadriver]

Job-related Expenses Deduction


What is the job-related expenses deduction?
Do I qualify?
What paperwork do I need?
Related deductions and credits
More information


What is the job-related expenses deduction?


You might be able to deduct expenses related to your job if they are required by your employer or necessary to perform your job. You might also be able to deduct your expenses when looking for a job.

Some of the most common eligible expenses are listed here. If you have expenses not listed here, or if you need more information, see IRS Publication 529, Miscellaneous Deductions.

- Meals, entertainment, travel, and phone expenses directly related to your job

Note: You can't include the cost of commuting to and from your office or work site.

- Tuition and books required to perform your job, improve your skills, or maintain your current salary or status

- Purchase price and cleaning expense for uniforms or protective clothing required by your employer, including safety glasses and boots

- Expenses (such as fees, dues, and subscriptions) for membership in professional organizations

- Union dues or fees

- An office in your home used for your employer's convenience

- Transportation expense if you travel to more than one workplace. This includes public transportation fare and expenses for your vehicle. In the case of a personal vehicle, you can deduct tolls, parking fees, and mileage at the rate of 44.5 cents per mile.

Note: You can deduct vehicle expenses and other transportation expenses only if you travel to more than one workplace. You can't deduct commuting expenses to your main place of business.

- Equipment and tools required to perform your job

- Legal, licensing, and regulatory fees that are necessary for your job

- Medical examinations required by your employer

- Malpractice or liability insurance required by your employer

- Security clearance expenses

- Job-search expenses


Do I qualify for the job-related expenses deduction?


Eligibility requirements

- Expenses must be necessary and directly related to performing your job.

Example: You can deduct mileage costs to travel to a work-related function in your personal vehicle (aside from your daily commute), if the expenses are not reimbursed by your employer.

- If your employer reimbursed you for an expense, you can't deduct it.

- You get a deduction only for those job-related expenses that exceed 2% of your adjusted gross income (AGI).

Example: Your AGI is $40,000 and you have $1,000 in job-related expenses. You can deduct only $200. This is because you can't deduct the first $800 (or $40,000 x 2%), but you can deduct anything over that

Limitations of this deduction

- You can't deduct education expenses if they are necessary to meet the minimum requirements for your job.

Example: If you're an administrative assistant, the ability to type is a requirement of your job. In this case, you can't deduct typing classes.

Special circumstances or exceptions

- Qualified performing artist business expenses and military reservists travel expenses are adjustments to income rather than deductions. Adjustments to income reduce the amount of income on which you're taxed and do not have to meet the 2% of your AGI rule. This means that if you are a qualified performing artist or military reservist, you can deduct all of your qualified expenses.

Note: To qualify as a performing artist:

- You must receive a minimum of $200 in payment from at least two employers for performing arts services during the year and

- Your business expenses related to the performing arts must be more than 10% of your gross income from the performing arts and
- Your adjusted gross income cannot be more than $16,000 before subtracting your performing arts business expenses.

- If you're a Department of Transportation employee, you can deduct 70% of the expense for meals while traveling away from home if the meals take place during or incident to any period subject to the Department of Transportation's "hours of service" limits. Apply this 70% limit before applying the 2% of AGI rule.

Note: The Department of Transportation's "hours of service" limits also apply to certain workers who are regulated by the Federal Aviation Administration, the Federal Railroad Administration, and the Coast Guard. For more information see IRS Publication 17, Chapter 26, Car Expenses and Other Employee Business Expenses.


What paperwork do I need for the job-related expenses deduction?


To calculate these deductions and for your records

- Receipts for your job-related expenses


Deductions related to the job-related expenses deduction


- Moving Expenses Deduction
- Educator (Teacher) Expenses Deduction


More information about the job-related expenses deduction


For more information, see:

- IRS Publication 17, Chapter 26, Car Expenses and Other Employee Business Expenses
- IRS Publication 529, Miscellaneous Deductions

 

[TonkaF16]

Stukadriver,

Great post, thanks for the info.

Tonka

 

[Gummo]

IRS Publication 463 (http://www.irs.gov/formspubs/index.html) covers most of these issues. There are special rules for transportation workers that allow you deduct a flat $52/day INCONUS for meals ($39 on first and last days of trips) if you don't want to figure out the rates for each overnight. Of course you would have to reduce that by whatever per diem the company pays you.

As for changing your domicile every year to make it a temporary assignment, I'm not so sure the tax man will buy it. The IRS says

"if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. An assignment
or job in a single location is considered indefinite if it is realistically expected to last for more than one year, whether or not it actually lasts for more than one year."
​

The 18-month thing may be what you can get away with but I couldn't find anything in writing. Pub 521 on moving expenses says you normally have to move within a year of taking the new job to write off the move unless there are special circumstances, e.g. a kid completing high school.

 

[dojetdriver]

I believe you can also deduct the DIFFERENCE between your airline per diem and the IRS standard per-diem (for meals) for a given city. For example, let's say your airline pays you $35 per day for per diem, and you have an overnight in SFO, and let's also say that the IRS-standard per-diem is $60 for meals for SFO (I have no idea what the actual figure is). You can deduct the difference ($25) for that overnight. If you have lots of overnight trips, it can end up making a big difference.

Maybe someone who is more tax-savvy than I am can verify that I have the basic idea right. I think that's one thing that PilotTax.com does for you. I don't use PilotTax.com, but my tax person basically did this same thing for me.

Lebowski

Yep, it's true. I have done this for the last 4 years. The average was an additional $200 per year. That is just my personal average, mostly domestic flying. One of the years was considerably more. I had a lot overnights in Canada. At the time, my company was paying $36/day ($1.50/hr) per-diem. The IRS allowance was somewhere around $90 a day. Made a difference. I used one of the advertised on-line services, cost $35. Bit of a pain to plug in all the overnights, but it only took about 15-20 minutes. Then just gave the figures to my accountant.

As far as the other stuff, I have been told no. No Crashpad, no parking pass. That is what I was told by my guy, maybe some other accountants are more savvy or willing to do something to get it to work. The reason, commuting is a choice you make, you choose to live somewhere and work somewhere else. I could see the base closure thing.