Tax question

[dispatchguy]

I'd be interested in reading that case as well - I'm a commuter dispatcher, living in Indiana (where wifey and our spoiled dog lives), and commuting to PHX

 

[bigbird]

You CANNOT deduct driving...I researched that. I am even an independent contract pilot. So there is no way any other pilot can deduct mileage.

 

[f18pugsley]

Driving can be deductible

Actually, lots of your driving is deductible. If you are meticulous about logging your miles it really adds up: 1/3 of the miles driven on my car were deductible last year. All you need to do is know a few rules and then log your miles each day.

The mileage for your primary commute is NOT deductible, however, any mileage after you get to work is. I.E. You drive to work (not deductible), then need to drive over to your sister squadron (deductible). It's only 3 miles round trip, but at $.365/mile that is one dollar off my taxes. It adds up fast! My drive to do the ATP training--all deductible (3 hour drive for me). This year I have been rushing reserve units--all those miles are deductible. Now I am going to fly for a unit that is a 3 hour drive away. It is not my primary place of work, so every time I go there, the mileage is deductible. Every time I drive out to the local airport to give somebody a glider ride for the club, the miles are deductible (though I think if I actually worked at the airport, the miles would not be deductible.)

The key thing is documenting every mile you think you can claim. When you fill out your taxes, it asks if you have a written record. I don't know how you get yourself credit for miles if you don't document it. I think it would be a lot harder to justify your claims at an audit.

Pugsley

PS I have never been audited, but after deploying in '97, I paid $0.00 income tax as a single Navy LT! (4 months tax free and a mortgage payment.)

 

[atpcliff]

Hi!

You CAN deduct driving, if it's a deductable expense-some driving is, some isn't (for example, driving to a pilot interview, providing you've been/are an pilot, IS deductable).

My wife talked to a tax attorney, who said crash pads and all associated expenses ARE deductable, but I have heard others (as above) who say no. There are a lot of pilots who deduct crashpads.

Details on Per Diem (meals, tips and misc.):
at the IRS site, you can search for Per Diem. You can find a table that gives the standard US perdiem ($30), and the perdiem for select cities.

When you are in a city travelling, you can either keep your receipts, and deduct the exact amount spent (good if you spend A LOT), or use the IRS deduction.

Now, if you get perdiem from your co./airline, you can only deduct the difference. Also, I read (not the IRS) that you can count 75% of a day when you leave arrive at a perdiem location. I often move between 2 perdiem locations, so obviously I am counting 50% at each one.

Examples of Perdiem deductability:
In El Paso for 3 days.
-Co. pays $38/day.
-IRS allows $38/day
-allowed to deduct $0

In DFW for 7 dyas
-co. pays $38/day
-IRS allows $46/day
-allowed to deduct$8/day

Left DFW for home on 8 AUg
-75% of 46 is $34.50
-co. paid 8 hrs of perdiem = $12.64
-allowed to deduct $22--

I live in GRB, and have to pay taxes in WI, even though I'm based elsewhere. Also, my company isn't required to take out my WI tax, so they don't. I can pay at the end of the year or quarterly.

Stuff to deduct:
Phone calls when you're on the road.
Watch, flashlight, etc.
Cost of FCC radio license (if needed for your airline)
Costs associated with applying for a pilot job (mail, printing, copying, etc.)
Sim prep/training
Type ratings
Phone (if required by your company)
Flight kit
If you can justify it (keep WRITTEN records) and the IRS accepts it, it is a good deduction.

My dad/mom were audited 2 years in a row. Each year the IRS gave them a lot of money back that their accountants missed-they were never audited again.

Cliff
GRB

Cliff
GRB

 

[rightrudder]

For a really comprehensive list of deductions, go to this site:

http://www.pilottax.com/pilot-tax_organizer_download.htm


download the professional deduction organizer, it's good stuff!

also, pilottax.com has some good info.

 

[Lindy]

Still looking...

I haven't forgot about that case....

4 states in 12 months/furloughed/storage units/new apartment

Where oh where did I read the article? Which Aviation Law forum? Or was it a Tax Law Forum?

Still looking....


And the aforementioned site is great for information AND it is also good advertising for the company involved.

 

[CoopDog]

I remember reading an article last year about several Northwest pilots that owed the state of Minnesota thousands in back taxes. It seems the state claimed they were residents, even though they listed FLA (I believe) as their home.

I used to know a guy in NC who flew for UAL and owned a boat in FLA, which he visited on occasion. He had a kid in college in a state school in NC, paying instate tuition. He also had both cars in NC with FLA tags. Meanwhile, he paid no NC state income tax because he claimed he was a resident of FLA (even though his house floated). He used the extra $12,000+ a year to pay for the FLA boat (excuse me, house) and his kid's college tuition.

 

[CoopDog]

Tax tips for furloughees

Speaking of tax tips, he's one I saw on my ALPA web board the other day, posted by a soon to be furloughed pilot in tax class.

In the State of NC, as well as some others I'm sure, one who has been furloughed or severed from his/her job through no fault of their own can deduct up to $35,000 of severance pay directly off the wages for state tax purposes.

For example, if you reside in North Carolina, and if you received say $10,000 in furlough pay from your airline, that will save you $700 in state taxes (works out to about 7%). This is a little known deduction that the state allows.

Happy deductions!

 

[StarrBuck]

Last year I found a tax guy (someone told me about him) in Cleveland.. Anyway, Great guy I called him about 200 times with 200 questions, and he was always very helpful.. He only does taxes for crewmembers, so he knows what he is talking about. The best part was he only charges $65.00 for your main return. If you have extra forms he charges $10 per form.. He had them done and returned to me 2 days after I sent them.. Excellent service, great price..

www.tax4crews.com

 

[Checks]

F18,

I also deduct for trips to my guard unit but have a question about per diem. I stay a family members house when I attend guard duty so I dont have any reciepts for lodging but was wondering what the rules are for deducting the standard per diem while I am away from home doing drill. I have not kept any receipts for food thinking I was going to just use the standard deduction. Is this correct?

Thanks