Airline Dispatcher Tax Deductions

[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.

 

[homerjdispatch]

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.

You are correct! I keep trying to tell this to people but nobody believes me. It is onyl when you are away from "base" overnight.

Pub 463 is the problem. It is confusing. Why does it specify dispatchers, ATC, ect?

 

[Duster41]

Total grey area here, or...

...some might say a loop hole. Either way, depending on who you talk to(or how you interpret tax law to read) you, as an aircraft dispatcher, are entitled to some form of deduction. It would behoove you to speak with your CPA and have him/her evaluate your rights.

 

[Ohh Porterhouse]

Doesn't work for most

My wife is a CPA and we already looked into this a couple years ago. The law has not changed and unless you commuted to your work (not in your car) and stay overnight, you cannot use this deduction. You wont find many CPA's who would knowingly put their a$$ on the line to let you use this deduction. However, the brilliant people working at H&R Block may let you. They are not sharpest tack in the box.

 

[sir5list]

H & R does my taxes and they stated that if you take the allowable deduction for meals being a Dispatcher, you are "keyed" as a possible AUDIT from the IRS.... Is it worth the chance?

 

[Ohh Porterhouse]

Definetely not