737 type tax info

[Farscape]

Hi guys and gals,

Can anyone provide a link to a previous discussion on the pros and cons of writing off the 73 type on your taxes. This discussion was several months ago and I can't seem to find it. Or just chime in and let me know what your feelings are on this topic. Thanks in advance for any and all help. Waiting paitiently by the phone for my interview call. Have a great day!

 

[b757driver]

Not sure what any of the cons are but if you don't ask, you won't get!

The basic IRS rules are that if you get qualified/trained in something that enhances your professional qualifications so you can get a job in the same field, then you canlist as an itemized deduction. Of course, that does not mean you will recoup the full amount, just a proportion. Keep in mind any meals, transportation and hotel costs. They all count. And last but not least, have receipts to back it all up in case you get audited!

Hope that helps.

 

[STL717]

Topic 513 - Educational Expenses

You may be able to deduct work–related educational expenses paid during the year as an itemized deduction on Schedule A of Form 1040 (PDF). To be deductible, your expenses must be for education that:

Maintains or improves skills required in your present job; or
Serves a business purpose of your employer and is required by your employer, or by law or regulations, to keep your present salary, status, or job.

Your expenses are not deductible if the education is required to meet the minimum educational requirements of your job, or is part of a program of study that can lead to qualifying you in a new trade or business.

Although the education must relate to your present work, educational expenses incurred during temporary absence from your job may be deductible. However, after your temporary absence you must return to the same kind of work. Usually, absence from work for one year or less is considered temporary.

Educational expenses include amounts spent for tuition, books, supplies, laboratory fees, and similar items. They also include the cost of research and typing when writing a paper as part of an educational program. Transportation and travel expenses to attend qualified educational activities may also be deductible. If you take a deduction for these educational expenses on your tax return, you cannot take other educational credits for these same expenses.

If you are an employee, you generally must complete Form 2106 (PDF) or Form 2106-EZ (PDF). Educational expenses are deducted as miscellaneous itemized deductions on Schedule A of Form 1040; they are subject to the 2% of adjusted gross income limit. For new information on the 2% limit, refer to Topic 508.

Self–employed individuals include educational expenses on Schedule C Form 1040 (PDF), Schedule C–EZ, Form 1040 (PDF) or Schedule F of Form 1040 (PDF).

You can also exclude from income up to $5,250 of employer–provided educational benefits received under a qualified educational assistance program. The payments do not have to be for work–related courses, but generally cannot be for courses involving sports, games, or hobbies. Courses that began after December 31, 2002 can be courses leading to an advanced academic or professional degree.

Your employer may report the educational assistance payments on your W–2 in Box 14 under "other". Taxable reimbursements will be reported by your employer as income to you in Box 1 of Form W–2.

For more information on educational expenses or Education Tax Credits, refer to Publication 970, Tax Benefits for Education. Information about other educational incentives can also be found in Publication 970.
=====================================

This may be easier.

IRS PUB 508

 

[Farscape]

what cons?

The possible "con" my wife is concerned about is being challenged by the IRS on that the gray area of interpretation of "same field" and education for "current employment." I am improving my overall skills in my current field of aviation by earning a 737 Type Rating, and improving the chances of Southwest hiring me within the same occupation, but will I be challenged for writing off the cost because my current employer doesn't require that particular rating?

 

[calfo]

Don't get so worked up - just deduct it and forget about it. If the IRS has any beef about it, they'll give you a call... Then you can tell them that under your fifth amendment rights, you don't have to furnish them any information that they can use to prosecute you with.

That said, it's a righteous deduction. Take it - I did a long time ago!

 

[b757driver]

No worries, mate! The IRS won't be knocking on your door @ midnight!

If you can't deduct it (for whatever reason), they will just disallow it, that's all. People have been doing this for years. Read STL717's post below re "educational" expenses. True this is not for your current employer but it IS for IMPROVING your professional education and SWA is still an airline, so you would not be going outside your field, right?

Do it and don't worry about it.

 

[STL717]

Pilot Education Tax Deductions