Originally Posted by
TED74
A common misconception is that small business write-offs are all beneficial. Realize that only those (authorized) expenses THAT EXCEED 2% OF YOUR AGI do you any good. For most newbies making 70k, that's no problem after training expenses, uniforms, etc.. But depending on your income the REST of the calendar year in which you get hired (think USAF VSP bonus), or the income of your spouse, $4,000 of business "write-offs" may net you almost no tax savings.
I'm no archeologist, so take my tax advice with a grain of salt.
After probation, ALPA dues (deductible) alone will get you pretty close to 2% of your AGI.
And don't forget all the other employee expenses, to include unreimbursed travel expenses. There are some services that do this, but I use a Google-docs spreadsheet with my travel schedule and per-diem rates to calculate my IRS-allowed travel expenses, then subtract the total per-diem I was paid (on your W2). That can net you a couple thousand in deductions. I also keep track of the tips to the van driver, shoe shines, dry cleaning, etc. All on my phone so I can update as I go.
Additional things to consider:
- Your Class I physical and Yellow Fever shot that was a requirement before you show up on property (subsequent ones aren't deductible because they're reimbursed)
- If you drove to indoc, your mileage, including mileage in the local area.
- If you flew to indoc, mileage to/from the airport, including flights home during breaks, and if you rented a vehicle during your stay, those costs.
- Temp housing during Sims
- M&IE during indoc
Also for out-o-state newbies like me, don't forget to get your ~$400 back from the State of GA for the taxes they took from you in indoc.
http://www.irs.gov/publications/p529...blink100026912