Taxes and per diem????

[av8erab]

Many of our days of work are less than 24hrs. I heard that you could deduct the difference between 24hrs and the partial day. Example: duty in at noon on first day and duty out at noon on last day. Because the first and last day was less than 24 hrs you get to deduct the difference, a total of 24hrs x hr per deim. Is this right? What is the govt. standard on per deim per hour?

 

[njcapt]

Funny you should ask. I just downloaded a hot copy of form 1542 just before coming to the site.

I have always broken the day into quarters - 0000 to 0600, 0600 to noon, noon to 1800, 1800 to 0000. Then I see what city I spent the night in and apply either 1,2,3, or 4 quarters at that cities' applicable rate. I have usually broken the day at noon, so I apply the day prior to noon at the previous cities' rate and after noon at the next cities' rate. If the duty period ends in a quarter I give myself credit for that quarter - even if I duty off at 1205. However, if my duty off is 1759 I don't get greedy and take the next quarter.

One thing to remember is that on out - and - back trips, the IRS gives no credit for per diem. So, even if you receive per diem during O&B trips, you can't claim excess credit towards them. This kind of per diem should have been taxed as income on your pay stubs.

This method was recommended by a tax preparer who was familiar with airline operations, and was seconded by a pilot I worked with who had been an IRS agent before reforming himself.

I'm due a bunch of credit for time where I received no per diem this year. I was in initial training for two and a half months away from base, and this is going to add up to some serious credit. Too bad I didn't make more this year, since I'm going to write off a bunch of now - worthless (OK, it was pretty worthless before) Vanguard stock I bought when things looked rosy there.

 

[NR133]

Forget about the Quarter stuff....

As of last year the quarter stuff is gone! First day and last day of a trip is now 3/4 of a day no matter when you start or end your day. Makes it easy ... www.Tax4crews.com good info.