Travel expenses - van driver tips?

[Benjamin Dover]

Anyone use an accountant who has a theory on this. IRS pub. 463 page 5 describes tips for service on ships and in foreign countries being part of "incidentals" in the standard meal allowance rate, but does not mention tips for domestic travel.

http://www.irs.gov/pub/irs-pdf/p463.pdf


So, if using standard rate for transportation worker, can we deduct domestic tips or not? Thoughts?

Thanks

 

[captfred]

Yes-have done this for years. An enrolled agent that does nothing but pilot tax returns allowed this back when he did my returns. I now do my own returns but continue to claim the van driver tips-have done it for 20 plus years with no problems.

 

[Benjamin Dover]

Yes-have done this for years. An enrolled agent that does nothing but pilot tax returns allowed this back when he did my returns. I now do my own returns but continue to claim the van driver tips-have done it for 20 plus years with no problems.

Thanks Fred

 

[Skybus]

U can deduct anything you want.... until.......

 

[GuinessGuy]

Ditto...I've been deducting Van tips also........

 

[Metro752]

Deductive reasoning?

 

[ualdriver]

Anyone use an accountant who has a theory on this. IRS pub. 463 page 5 describes tips for service on ships and in foreign countries being part of "incidentals" in the standard meal allowance rate, but does not mention tips for domestic travel.

http://www.irs.gov/pub/irs-pdf/p463.pdf


So, if using standard rate for transportation worker, can we deduct domestic tips or not? Thoughts?

Thanks

Are you using the actual cost method or the standard meal allowance method?

 

[Benjamin Dover]

Are you using the actual cost method or the standard meal allowance method?

"Standard rate for transportation worker" meant standard meal allowance method.

 

[ualdriver]

"Standard rate for transportation worker" meant standard meal allowance method.

On page 5 of Pub 463 it says.....

Generally, you can use the “standard meal allowance” method as an alternative to the actual cost method. It allows you to use a set amount
for your daily meals and incidental expenses (M&IE), instead of keeping records of your actual costs. The set amount varies depending on
where and when you travel. In this publication, “standard meal allowance” refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance. If you use the standard meal allowance, you still must keep records to prove the time, place, and business purpose of your travel (my notes: company probably does that under their accountable plan). See the recordkeeping rules for travel in chapter 5.

It then goes on to define incidental expenses, which I would think tips to a van driver fall under...

Incidental expenses.
The term “incidental expenses” means:
· Fees and tips given to porters, baggage carriers, bellhops, hotel maids, stewards and others on ships, and hotel servants in foreign countries

So if you're taking a standard meal allowance, which you clearly post in your last reply to me, then that standard meal allowance includes meals and incidentals. Incidentals = tips to van drivers (see definition above). If you deduct tips in addition to the standard meal allowance, you would be deducting your tips twice: once with the standard meal allowance and once again when you deduct the tips.

This is all assuming, of course, that you weren't fully reimbursed by your company in the first place. I assume you're using Form 2106 to deduct the difference between Box 12 Code L on your W2 and your standard meal allowances.

Or I could be wrong

 

[RedDogC130]

is it really worth it?