First, you need to get some forms/pubs for the full story. Start with Publication 529 Miscellaneous Expenses and Publication 463 Travel Entertainment, Gift and Car Expenses. You'll also need Schedule A 1040 and 2106 or 2106EZ Employee Business Expenses. You can view or download these from
www.irs.gov - the friendly people
Really, they are.
Before you even start looking though, unless you itemize deductions, this "ain't gonna help". Let's assume you can itemize.
QUestion #1. YES. Credit card annual fee - assume 100% business use. Annual fee deductible subject to 2% Adjusted Gross Income limitations rule. (Add all these up and the part that is over 2% of your AGI can be included as an itemized deduction)
"You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2%-of- adjusted-gross-income limit. These are expenses you pay: 1. To produce or collect income that must be included in your gross income, 2. To manage, conserve, or maintain property held for producing such income, or 3. To determine, contest, pay, or claim a refund of any tax. You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonably and closely related to these purposes."
Question #2. First, you have to define your tax home. More than likely that is where you are based for work, not where you live. "Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. It includes the entire city or general area in which your business or work is located."
Assuming you are traveling AWAY from your tax home, as a pilot you can use the alternative rule for transportation workers with respect to meals. That makes life much less confusing. You don't have to remember where you are or were.
"Special rate for transportation workers. You can use a special standard meal allowance if you work in the transportation industry. You are in the transportation industry if your work:
1. Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and 2. Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates.
If this applies to you, you can claim a $38 a day standard meal allowance ($42 for travel outside the continental United States).
Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year. " CLEAR AS MUD, eh? It gets better!!
"50% limit may apply. If you use this method for meal expenses and you are not reimbursed or you are reimbursed under a nonaccountable plan, you can generally deduct only 50% of the standard meal allowance. If you are reimbursed under an accountable plan and you are deducting amounts that are more than your reimbursements, you can deduct only 50% of the excess amount. "
BUT WAIT, you're a transportation worker - a special rule applies to you.
"Individuals subject to "hours of service" limits. You can deduct a higher percentage of your meal expenses if the meals take place during or incident to any period subject to the Department of Transportation's "hours of service" limits. The percentage is 60% for 2001, and it gradually increases to 80% by the year 2008.
Individuals subject to the Department of Transportation's "hours of service" limits include the following persons.
Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations.
Interstate truck operators and bus drivers who are under Department of Transportation regulations.
Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations.
Certain merchant mariners who are under Coast Guard regulations. "
First, you can only consider the part that you are not reimbursed for. $38-30 at least for some days. It appears as if your employer has an accountable plan (you have some requirement to account for your expenses in general) AND then you'll only get a % of that $8 extra per day you can use. But hey, it's more than $0. That is if it gets you above the 2% AGI rule when all is said and done!!
It's not clear to me if, as a transportation worker, you are subject to the 75% rule for day of departure and day of return. I think the special transportation rule replaces the standard meal rule but I'd have to do more research to me sure. Just a hunch though that you are under the special rules, not the standard.
Basically, the answer is you can deduct the difference between the $38/day and what you were reimbursed counts and then 60% or more of that.
Question #3 - Don't see anything other than standard mileage which they appear to be paying for you so no more deduction but hey, didn't you do laundry while you were waiting?
"Work Clothes and Uniforms
You can deduct the cost and upkeep of work clothes if the following two requirements are met. 1. You must wear them as a condition of your employment. 2. The clothes are not suitable for everyday wear. " Pilot uniforms count for this. And this is not only when you are in travel status.
Meals for the day in question depend on whether you are considered to be in travel status - away from your tax home overnight. I'd guess not...unless the weather craps out and you have to stay over. Otherwise, it's just like going to work at any 9-5 job, you can't deduct lunch!
Question #4 - YES - Employee Educational Expense.
"Education That Is Work Related
You can deduct expenses you have for education, even if the education may lead to a degree, if the education meets at least one of the following two tests.
1. It maintains or improves skills required in your present work.
2. It is required by your employer or the law to keep your salary, status, or job, and the requirement serves a business purpose of your employer.
If your education meets either of these tests, you can deduct expenses for tuition, books, supplies, laboratory fees, and similar items, and certain transportation costs. "
I think that's your list. Don't forget other items that you might have to pay such as those map things you need, jepps?, flightbag, kneepad toys, headphones, and so forth. Some might be considered depreciable expenses and I'm not sure we even want to go there on a Friday night.
Hope this helps and doesn't confuse
you more. Let me know where to mail the cake with the file inside.
I GOTTA GET A LIFE.
