Per Diem

[DoinTime]

Per diem is taxible if you start and finish a continuous duty period in your domicile (ex: day trips or continous dudty overnights). Per diem is not taxable if you either start or finish your duty period in someplace other than your domicile (ex: any multiple day trip).

 

[DorkProp]

In this case all of the per diem would be untaxable. It would only be taxable if you ended your first day back in Chicago.

Pilots who itemize deductions can deduct reasonable expenses beyond what is covered by the untaxable per diem. You can either keep a log of expenses, or, as I do, use the IRS' standard per-day amount. This deduction basically makes any taxable per diem you earned untaxable.

I ain't no accountant. I just remember this from last year. Turbo Tax figured it all out for me.