Pilot Taxes/Per Diem

4got2flare

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Does anyone do their own taxes?
Who do you use if not?

How have you figured your Per Diem deduction calculation? This year the per diem rate has changed to a large city/small city vs. flat rate per day.

Do you itemize each city or use the per day amount?

Sorry for all the questions, Last year was easy but with the changes this might be more of a challenge.

Happy Landings...
 

captain caveman

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This guy is a pilot for jetBlue and has a masters in tax. He's been an accountant for a while and reduces my taxable income legitimately more than I could ever dream of doing. 770-884-7565
aircrewtaxes.com
 

thor2j

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You are allowed to deduct 75% the day of travel, 100% full days there, and 75% on the return. For example you have a 3 day to London. Even though the first day you are in the air, and most of third day in the air you are allowed to take a deduction equal to 250% of the M&IE rates found all over the interenet.

Say London's M&IE rate is $200

day 1 $150 (75%)
day 2 $200 (100%)
day 3 $150 (75%)

Your total deductions for the year are limited to 80% as pere the DOT rules.

After you have all your deduction for the year totaled, and 80% factored, subtract what the company paid you iin per diem and that is your write off. If you do international it is a huge write off, domestic, not so much. Most US cities are only worth $53/day. After you take your 80% and what the company pays you, it does not help much.

Hope that helps.
 

DH2WN

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This guy is a pilot for jetBlue and has a masters in tax. He's been an accountant for a while and reduces my taxable income legitimately more than I could ever dream of doing. 770-884-7565
aircrewtaxes.com
Instead of filling out that stupid form you can fill the same crap out with TurboTax and save yourself the ripoff accountant fee.
 

Papa Woody

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Instead of filling out that stupid form you can fill the same crap out with TurboTax and save yourself the ripoff accountant fee.
BINGO. That's the answer. Accountants are a major ripoff. TurboTax rules.

I can't wait till they come out with TurboSurgeon!
 

Fox-Tree

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Does anyone do their own taxes?
Who do you use if not?

How have you figured your Per Diem deduction calculation? This year the per diem rate has changed to a large city/small city vs. flat rate per day.

Do you itemize each city or use the per day amount?

Sorry for all the questions, Last year was easy but with the changes this might be more of a challenge.

Happy Landings...
4got,
AWESOME AVATAR!!!

I do my own taxes w/ turbo tax and used to do my own per diem calculations until last year.

Go with prodiem.com

I did my calculations and compared it with theirs and they beat me by several hundred bucks (and I'm pretty exacting about that stuff). Worth the $50 for both the extra deduction as well as the time spent doing the work.
 

SIR MILO

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wolcott and associates also has a per diem calculator and expense calculator, both for $50. Works great
 

NightFlight

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For the guys/gals that do their own taxes, where do you add the per diem deduction? What section?
Thanks...
 
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PlaneDrvr

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For the guys/gals that do their own taxes, where do you add the per diem deduction? What section?
Thanks...
Per diem deductions are normally done on a Form 2106-business expenses. I used to break down my individual cities, per deim deduction, but as was stated by earlier poster, if flying 'domestic only' the deduction isn't that much. But does depend on how much your company pays for a per diem rate; if your company per diem rate is really low, and you have stays in 'high rate' cities, could be some serious coin, if not, as I said, not much of a deduction.

I have used TurboTax for the last 12 yrs. or so, just plug in the numbers and it fills out the forms for You.

As someone also said previously, TurboTax Rules!!

***Also, the new U.S 'tax cheat' Treasury Secretary uses TurboTax (as he testified before the Senate), you can't get any better endorsement than that. lol

PD
 

Fox-Tree

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The old rule of thumb regarding domestic cities and per diem is just that, old.

Even if you only fly domestic, many large cities have per diem rates over $60/day. It all adds up. I'd at least figure out a ball park # for your deductions and determine if it's worth it. Don't just assume it isn't.

Turbo Tax!! - Don't waste your time doing your taxes without it.
 

Long Time Gone

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BINGO. That's the answer. Accountants are a major ripoff. TurboTax rules.

I can't wait till they come out with TurboSurgeon!
How about TurboDentist or TurboWhore?
 

Truckdriver

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The perdiem stuff is a piece of cake and takes about 5 minutes each month to do it yourself.

Make a spreadsheet or something to keep track of each city you overnight in. Once a month instead of wasting time on FI, add up the amount of each overnight. It literally takes less than 5 minutes. At the end of the year, add up all the months, plug the numbers into form 2106 or Turbo Tax, and your done.

Those perdiem calculators are easy, but you can do it yourself and save some coin. I talked to a guy who used one of the calculators and then paid an airline accountant to do his taxes. Paid around $300 to get everything done. My tax prep bill this year will be $0. The IRS forms all download now in a form fillable PDF format that is easy to fill out. Print those babies up and mail them off. Takes about an extra week to get your refund vs. TurboTax, but I can wait a week for a refund if it saves me $40.
 

Truckdriver

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Also FWIW, my company pays $2/hr for perdiem. I usually average about 3-4 4-day trips per month almost all domestic. I was paid $4650 in perdiem by my company and the amount I figured for a perdiem amount allowed by the IRS was $7580. After all the fancy math on 2106 and schedule A, it netted me an additional $2000 or so in itemized deductions. This year the perdiem allowance got me an additional $380 on my return.
 

relief tube

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I've found that unless you overnight in nashville every night, it pays to use each city individually.
 

Secret Squirrel

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Just use the $52 standard meal allowance for every domestic city. As a transportation worker, if you use the standard meal allowance, you do not have to take the 75% deduction on the first and last day. This is per Publication 463 page 6.
 
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Truckdriver

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Just use the $52 standard meal allowance for every domestic city. As a transportation worker, if you use the standard meal allowance, you do not have to take the 75% deduction on the first and last day. This is per Publication 463 page 6.
I believe you can actually do it that way even if you use each city. You just have to be consistent in the way you pro-rate each trip.

You can use the first overnight amount for day 1 and day 2. Then you use the second overnight amount for day 3 and the third overnight amount for day 4. Or you can use the first overnight amount for day 1, the second overnight amount for day 2, and the third overnight amount for day 3 and day 4. You have to choose which way you want to do it and then do it the same way the entire year.
 
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