Tax Write Offs

[skychicken]

Hey, I was just doing my taxes and trying to make itemized deductions worth doing and was just wondering what everybody uses for write offs in case I forgot something.

 

[blackbox]

write off your cable bill, tell them you watch the weather channel so that you know what you will be flying in

 

[Carl_Spackler]

Mortage interest
Property tax
Sales Tax
Per-diem
Aviation publications
Job search costs
business/networking meals (not at work)
Education
Hair cuts
donations

 

[atrdriver]

Just for information, a tax court ruled a few years back that an airline pilot can't deduct haircuts, because the average person gets their haircut anyway. Not saying I agree with it, but it's something that I don't deduct anymore.

Some more ideas though:
all uniforms
cleaning of uniforms
shoes or repair
union dues
crew bags
headsets or repair

 

[NCFlyer]

write off your cable bill, tell them you watch the weather channel so that you know what you will be flying in

That's right, deduct the cable bill, then you can also write off the $10,000 plasma screen TV to watch The Weather Channel.

And don't forget to deduct the high speed internet that you use 1 hour each month to bid.

 

[StaySeated]

FWIW, you only get 70% of the difference between what you were paid in perdiem and what the dot says you should be paid in various cities. Also, do a search about computers and the irs. You will find a recent case that rules out the option of deducting the cost/depreciation of a computer and your monthly internet charge.

 

[skychicken]

Is it possible to write off your crashpad???

 

[FedEx1]

You only get to have these deductions if you file a Schedule C (or itemized deductions.) And you only file the Schedule C if your deductions are more than the standard (single or married) deduction. So, if you're a single poor guy with no mortgage, you probably won't have more then the single deduction in expenses anyway. So you won't get to deduct this stuff.

If you moved for a job or new domicle, you can take those expenses as a deduction off the top (from your gross wages- and not itemized.) Oh- union dues are also deductible.

Might be worth H&R Block to get it figured out this year, then do it yourself after that.

 

[GogglesPisano]

Is it possible to write off your crashpad???

No. Nor can you write off commuting expenses.

I use these guys ... http://www.pilot-tax.com

If you're cheap, use them once and keep their organizer for future reference.

"Cockpit supplies" can mean anything: batteries, flashlights ...

 

[atpcliff]

Hi!

U could write off your computer, etc. but only to the extent that you use it for your flying-job search, etc. So, if you use your computer 80% personal/20% flying-U can depreciate/deduct 20% of the cost.

The Schedule C is if you have a business-nothing to do with Schedule A deductions. For example, if you take photos while flying and sell them to whomever, you can put all the costs/income related to your flying photography on your Schedule C. THe rule is, it has to be a legitimate business and you have to be "trying" to make a profit. If it's a hobby-no dice.

You don't have to actually make a profit, just be trying. I used to do
a Volleyball business on my own. I did it about 7 years. I made a profit 2 years, and lost for 5. Overall, I save a LOT in taxes.

Realize that if U do this, you have to show any income/profits on your Schedule C and you might owe MORE in the years U made a profit.

Woodworking, gun cleaning/MX, writing, coaching clinics, PR-there are tons of jobs you can do on the side and use a Schedule C.

Cliff
YIP

PS-Flashlights, sunglasses, calculator, etc., all travel expenses not covered by your company-commuting expenses when you're sent TDY by your airline (training, TDY to another base, etc.)

 

[QXpeon]

pu$$y on the overnight in reno baby!

 

[19pilot]

Gym Membership if you have one!

 

[flyn96]

I think the latest ALPA mag had a list of stuff

 

[Shrek]

I use http://www.crewtaxes.com/ . They are cheaper than pilot tax and all of the forms are paperless on their website. But both are good sources for tax help.

Here are some items you might want to use come tax time.
Per Diem Difference
Hotel Van-Driver Tips (Computed from # of days worked)
Hotel Maid Tips
Dry-cleaning (If not reimbursed by company)
Uniforms and accessories (tie, scarf, epaulets, etc.)
Uniform Alterations
Other Clothes for work and/or training
Shoes/Boots
Shoe Repairs/Shines
Gloves/mittens
Hose/Socks Undergarments
Toiletries
Nails (if polish or clearcoat is required by employer)
Flight Luggage
Luggage Tags
Flight Luggage Repair
Wings
Company ID Replacement
Cockpit / Jet-Way Keys
Corkscrew
Logbook/Calendar/Organizer
Flashlight
Batteries
Door Alarm
Travel Clock
Travel Curling Iron
Travel Hair Dryer
Travel Iron
Travel Smoke Detector
International Voltage Converter
Manual Fees (replacement)
Updates & Revision Services
Bidding Services
Travel Passes Employee ONLY
Professional Aviation Publications
Faxing or Copying
Recurrent Training Expenses
New Aircraft Training
New Cabin Service Training
Other Training
Travel Expenses to Union or Company Meetings
Foreign Lang Courses or Seminars
Unreimbursed flight tickets
Union Dues
Union Initiation Dues
Other Aviation Organization Dues
Pager Purchase
Pager Service
Cell Phone Purchase
Cell Phone Service and/or Calling Card Fees
Internet Service Provider
Computer Supplies
Watch
Passport (New or Expired)
Passport Photos
Foreign Visas
Business Cards & Supplies
Loss of License / Medical Insurance
FAA Medical Expense
Cockpit Supplies (maps, charts, etc.)
Ear Piece / Headset
Hearing protection
Sunglasses
2nd phone line for scheduling
Answering Service / Machine
ATM Fees on Layovers
Drug Testing Expenses
Airport Parking Fees
Emergency Cab Fares (Reserve only)
Layover transportation Expenses (taxi, rental car, subway, bus, etc)
Mailing expenses

 

[dash8driver]

condoms..but only if they are used to have sex with an FA on an overnite.




.

 

[Qwertyuiop]

I use http://www.crewtaxes.com/ . They are cheaper than pilot tax and all of the forms are paperless on their website. But both are good sources for tax help.

Here are some items you might want to use come tax time.

Other Clothes for work and/or training
Shoes/Boots
Shoe Repairs/Shines
Gloves/mittens
Hose/Socks Undergarments
Toiletries
Nails (if polish or clearcoat is required by employer)
Corkscrew
Calendar/Organizer
Flashlight
Batteries
Door Alarm
Travel Clock
Travel Curling Iron
Travel Hair Dryer
Travel Iron
Travel Smoke Detector
International Voltage Converter
Foreign Lang Courses or Seminars
Pager Purchase
Pager Service
Cell Phone Purchase
Cell Phone Service and/or Calling Card Fees
Internet Service Provider
Computer Supplies
Watch
Sunglasses
2nd phone line for scheduling
Answering Service / Machine
ATM Fees on Layovers
Airport Parking Fees

I doubt that many of the above deductions would hold up under an IRS audit.

Be careful when trying to deduct shoes, gloves, mittens, socks, undergarments, etc. According to IRS Publication 529, Miscellaneous Deductions, under Work Clothes and Uniforms: "You can deduct the cost and upkeep of work clothes and uniforms 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. ... Nor is it enough that you do not, in fact, wear your work clothes away from work. The clothing must not be suitable for taking the place of your regular clothing".

You would have a tough time arguing in an IRS audit that your underwear cannot be worn away from work.

Also in Publication 529, under Non Deductible Expenses: "You cannot deduct the cost of a wristwatch even if there is a job requirement to know the correct time to properly perform your duties".

Education expenses (such as foreign language courses and seminars) cannot be deducted unless they "maintain or improve skills required in your present work" or "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".

Parking fees, tolls, transportation, etc. are not deductible if they involve commuting to/from work.

In general, business expenses are only allowed if required by the employer and are considered ordinary and necessary. So if you employer requires you to buy a cellphone, pager, computer, etc. as a condition of your employment, then you may deduct the depreciation on that item; otherwise, you can't. Just because you choose to learn a foreign language, buy a second phone line, or use an answering service, doesn't mean that (in the eyes of the IRS) you can get away with deducting those items as business expenses.

Take a look at this article about a pilot who tried to deduct haircut expenses and got audited: http://www.forbes.com/2001/03/06/0306finance.html

Just because you or your buddy or your so-called 'tax advisor' have got away with claiming these types of deductions in the past, doesn't mean they will hold up under an IRS audit.

 

[Prop2Jet]

what about a divorce caused by an aviation career? hahahah

 

[Jimbodawg]

Serious question for a new regional guy...

Serious question for a new regional guy...

So I work for PSA. Based and live in CLT. My pay comes from Ohio. Do I write that I earn income in another state (Ohio)? Do I pay an Ohio state tax aswell?


Thanks

 

[Chest Rockwell]

If you are a NC resident for the entire year, then you pay only that state's income tax.

 

[mckpickle]

WOOOOOOOOOW.....just finished mine......arhhhhhhhhhhh

Anyway, I work on 2 union committees so my accountant has me take deductions that other may not. Like Cell Phone (1300$) Computer and accessories. Ink Cartridges.

Some things I KNOW everyone can take, tips for the drivers....(not to pick you up or get your bags but because he was there on time) Tips to the hotel maids. I think I figured almost 600 bucks for tips.

Sunglasses, batteries, Hotels & food while traveling for union meetings.
Auto and other taxes. (in NH I paid almost 500$ to register my car!)

Anyway, the guys name is Carl and he has a buisness called AirTax. I've used him for years. When I ask if I'm deducting too much he says, "your problems become my problems" since he represents you in the event of an audit! Annway, hope that helps a bit.

 

[atpcliff]

Hi!

For normal occupations, like pilots, u only have to pay state tax in one state.

F0r example, if you live in FL and are based in NYC, u wouldn't have to pay ANY state tax because FL doesn't have any.

A guy I know lives in OH and works in MI. He wants tax money taken out of his check so he doesn't have to pay a tax bill to the state. So, he has MI take money out of his check, he files MI taxes and gets the money back, then he files OH to pay his taxes. I wouldn't recommend that!

I don't have any money taken out by MI (where I work), so I have my wife take extra out of her pay in WI (where I live). That way we come out about even, and if we owe, we cover it with what we get back on our Federal return.

Good luck to U!

Cliff
YIP

PS-We just filed our Federal electronically yesterday.
PPS-My first choice is to get rid of ALL income taxes and the IRS as we know it, and have a federal sales tax to generate the revenue that the income tax currently provides (no sales tax on food, clothing, medicine).

 

[sweptback]

PPS-My first choice is to get rid of ALL income taxes and the IRS as we know it, and have a federal sales tax to generate the revenue that the income tax currently provides (no sales tax on food, clothing, medicine).

You don't want that. A sales tax discriminates against the lower class because most of their income is spent on goods. Those who have more money buy about the same amount of goods (relatively), however they invest their millions. With a sales tax, investment income wouldn't get taxed.

 

[DoinTime]

WOOOOOOOOOW.....just finished mine......arhhhhhhhhhhh

Anyway, I work on 2 union committees so my accountant has me take deductions that other may not. Like Cell Phone (1300$) Computer and accessories. Ink Cartridges.

Don't you get reimbursed for these expenses through your council? If you do get reimbursed and you deduct them anyway you stand to get in some pretty huge trouble as ALPA's reimbursement records are shared with the IRS.

Some things I KNOW everyone can take, tips for the drivers....(not to pick you up or get your bags but because he was there on time) Tips to the hotel maids. I think I figured almost 600 bucks for tips.

If you break down per diem expenses to maximize on this particular deduction you cannot add an additional deduction for misc. tips. Tip money is included in the $41/day ME&I rate.

Sunglasses, batteries, Hotels & food while traveling for union meetings. Auto and other taxes. (in NH I paid almost 500$ to register my car!)

Once again I would hope your local council is reimbursing you for out of pocket money while doing their business.

Anyway, the guys name is Carl and he has a buisness called AirTax. I've used him for years. When I ask if I'm deducting too much he says, "your problems become my problems" since he represents you in the event of an audit! Annway, hope that helps a bit.

Carl may represent you but you alone are responsible for the fines and penalties if he is wrong.

 

[mckpickle]

Don't you get reimbursed for these expenses through your council? If you do get reimbursed and you deduct them anyway you stand to get in some pretty huge trouble as ALPA's reimbursement records are shared with the IRS.




If you break down per diem expenses to maximize on this particular deduction you cannot add an additional deduction for misc. tips. Tip money is included in the $41/day ME&I rate.




Once again I would hope your local council is reimbursing you for out of pocket money while doing their business.




Carl may represent you but you alone are responsible for the fines and penalties if he is wrong.

Nah, I don't get reimbursted for hardly anything. The only thing is for trip loss due to scheduling committee stuff or for a conference. Otherwise I just play it smart. If I have a union meeting at night I put a trip on my schedule the next day so I can deduct it. For 2005 I received no reimbursment from ALPA. I supposed I could but my cell cost around 1400 a year. That would just about wipe my jumpseat budget out for the year.

As far as tips go, I'm not tipping for the van driver to be there....I'm tipping because he was on time...... There apparently is a difference. From what I've been told however, hotel maid tips are not included in the ME%I rates.

 

[DoinTime]

PPS-My first choice is to get rid of ALL income taxes and the IRS as we know it, and have a federal sales tax to generate the revenue that the income tax currently provides (no sales tax on food, clothing, medicine).

This type of tax generation system would destroy our economy. To completly replace income tax consumption (sales) tax would have to increase from the current 6-10% to over 40%. With huge tax loads like these (at least percieved tax loads) consumers would seek alternate means of securing the goods they need. The black market would thrive. Floods of Americans would smuggle goods purchased in Canada and Mexico back across the border. Huge amounts of money would pour into international economies while local retailers wither and die.

 

[atpcliff]

Hi!

I believe the best 2 alternative are a Value Added Tax (VAT) or a Sales Tax. I would exempt food, clothing and medicine because the poor spend a disproportianate amount of their income on those 3 items.

The sales tax would have to be approximately 20% to cover the loss of the income tax.

There are many rich people who don't pay their fair share of taxes now, and they would when they bought their yachts, airplanes, jewlery, etc.

There are also a lot of criminals who don't pay any tax on their criminal income. With a sales tax they would pay their share.

Other choices, that I don't like as much, would be better than what we have. We could keep the same tax brackets, and just tax ALL monies incoming, with no deductions or exemptions. We could switch to a flat tax on all incoming monies, with no deductions or exemptions.

I'm sick and tired of spending hours and hours doing my taxes, knowing all the while that their are thousands, if not hundreds of thousands of people out there that aren't paying anywhere near their share of taxes.

Also, it pisses me off how much money our country spends on income taxes, that could be going to much more important things than accounting.

Cliff
YIP

 

[Dave Benjamin]

The last place I'd look for advice is here.
Go to a real CPA specializing in airline crew tax prep. I use pilot-tax.com to prepare my Form 2106. That gets handed to my regular CPA who does the rest of our returns. Our taxes are a bit too complicated for me to handle plus I'd rather just pay a professional than make pretend I'm an expert on tax issues.