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Old 03-06-2015, 11:56 AM
  #13  
Adlerdriver
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Originally Posted by purple1day View Post
Yes, adding up the excludable allowance is what you can deduct on your taxes for the year. Just add it up and fill in that number. Don't forget to add the amount you were reimbursed (the total per diem paid to you for the year). Not sure why fedex does not total the column, but if you are a FxCal user there is a tool that totals up the year for you.
Purple, maybe I'm not understanding what you're saying here completely so I apologize in advance if you know all this.

But, if I read the process you outline above correctly, what you say there isn't correct.

The column labeled "Xcludbl Alownce" is not what you can deduct on your taxes for the year. It's the company's calculation of our per diem for each layover using government rates. As I already mentioned, some of those rates FedEx is using are not always accurate.

Assuming they were accurate, if you added up that column on a year's worth of recaps, you would have a total government allowed per diem figure based on whatever method FedEx uses. It wouldn't be as high as the figure that my per diem company would provide you (their method is IRS approved and proprietary), but it would be useable just the same.

However, regardless of the source of your total, you can't just "fill in that number" on an IRS form. You also don't add that number to the per diem figure that FedEx actually paid you for the year listed in box 12L on your W-2.

You actually subtract those two numbers and get the difference between the government rate total and what FedEx paid. Once you have the difference, you then take 80% of that difference to arrive at your total deductible employee business expense.

Hopefully that helps. Cheers.
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