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12-16-2023, 03:37 PM

#6

iahflyr

Gets Weekends Off

Joined APC: Jan 2006

Posts: 1,549

Quote:

Originally Posted by Planetrain

Form 2106 allowed us to deduct 80% the difference between government rates and the lesser amount Delta paid us. The notes in the instructions for form 2106 explain that this “deduction” has been suspended for most workers (including pilots) because of the Trump era tax cuts (67a).

Exactly this. Day trip per diem is taxable, but per diem on overnight trips is tax exempt. That has always been the case.

What has changed is we used to be able to write off 80% of the difference between the higher government M&IE rate and what we got paid. So if govt per diem in DC is $79/day, and we got paid $2.50/hr per diem ($60/day), we could have written off the $19 difference. Unfortunately that is one of the many deductions we lost with TCJA under Trump.

Under TCJA, you can also no longer write off union dues, unreimbursed employment expenses, moving expenses, tax prep expenses, state income tax and property tax of 10k a year or more, and mortgage interest over 750k (neither of these limits increase with inflation).

TCJA was the largest tax increase of my life. Good riddance when TCJA expires in 2 years and 15 days (Yes I have been counting since late 2017).

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