Airline Dispatcher Tax Deductions

[XPOO]

Well, here where I work, they do often have special polo shirts made with the company logo and "Flight Control" written underneath it. Each dispatcher has to pay $30 to get one. Sounds like an unsupplied uniform to me.

 

[Morning Wood]

Under the H&R Block website it says that Dispatchers in the Transportation industry often overlook the fact that they can claim the money they spend on work provided meals since they are not allowed the freedom to suspend their duties to have their required breaks and meal periods. Vending machine in the office and coffee sound like a work provided means of meals at your expense, do they not?

Who's forcing you to drink coffee? That would be like being able to deduct what you spend on cigarettes. Vices are a choice pal.

 

[Morning Wood]

Well, here where I work, they do often have special polo shirts made with the company logo and "Flight Control" written underneath it. Each dispatcher has to pay $30 to get one. Sounds like an unsupplied uniform to me.

It was your choice to purchase one or not. I don't remember anyone forcing you to buy one.

 

[XPOO]

I'm not saying anyone forced me into buying a shirt. However, I believe it falls in at least two of three categories as required above, and the third could be debatable. I'm also not saying that anyone is forcing me to buy the coffee or the food out of the vending machine. I'm stating that they are allowed by the company to be provided for our consumption should we choose to do so. I believe that falls into the criteria for being able to claim those expenses as a deduction.

I'm not bashing my company in any way shape or form or the way it is managed, I am simply trying to see what things can help us get more of a tax return. That's all.

 

[XPOO]

Found on IRS Form 2106-EZ:

Line 5. Generally, you can deduct only 50% of your business meal and entertainment expenses, including meals incurred while away from home on business. If you were an employee subject to the Department of Transportation (DOT) hours of service limits, that percentage is 75% for business meals consumed during, or incident to, any period of duty for which those limits are in effect.

Employees subject to the DOT hours of service limits include certain air transportation employees, such as pilots, crew, dispatchers, mechanics, and control tower operators; interstate truck operators and interstate bus drivers; certain railroad employees, such as engineers, conductors, train crews, dispatchers, and control operations personnel; and certain merchant mariners.

Sounds like the way this is interpretted, it considers meals consumed during our shifts, under the DOT regulations of hours of service limitations, as business related expenses. If you owned a business and took a client out for dinner, you could claim the dinner as a business expense. Since we are still performing our duties during meals these are seen as a business related expense not reimbursed by the company. And being in the transportation industry the IRS has granted us 75% to claim as a deduction this year, to move to 80% by 2008.

If the company provided meals free of charge, the company could use the deduction for themselves. I hear Southwest Airlines pays their dispatchers a per diem for meals. Does this help Southwest as a tax write-off? I would think so, but I'm not going to jump to that conclusion without an affirmative answer.

Anyone care to weigh in on this new finding?

 

[shooter]

Found on IRS Form 2106-EZ:




Sounds like the way this is interpretted, it considers meals consumed during our shifts, under the DOT regulations of hours of service limitations, as business related expenses. If you owned a business and took a client out for dinner, you could claim the dinner as a business expense. Since we are still performing our duties during meals these are seen as a business related expense not reimbursed by the company. And being in the transportation industry the IRS has granted us 75% to claim as a deduction this year, to move to 80% by 2008.

If the company provided meals free of charge, the company could use the deduction for themselves. I hear Southwest Airlines pays their dispatchers a per diem for meals. Does this help Southwest as a tax write-off? I would think so, but I'm not going to jump to that conclusion without an affirmative answer.

Anyone care to weigh in on this new finding?

I would talk to your CPA about this and stay away from HR Block people. They are no better than the turbo-tax box.

 

[WalterSobchak]

If you've got it...keep it coming. Baby needs a new pair of shoes and the casino doesn't pay out like a tax return...

Zoiks!

 

[XPOO]

Like, Zoiks Scoob!

 

[WalterSobchak]

Anything new on this?

 

[Thedude]

Check out IRS pub 463. You cannot deduct meal expenses unless you travel away from your tax home and it requires an overnight stay. As flight crew we cannot deduct meals unless we overnight, ie cannot deduct meals on a turn.