Originally Posted by
Mario D
"8.C.5.b. A pilot shall designate on his online expense report any claim for deviation travel expenses incurred while commuting to or from his base. The amount of such claim that is allowed/reimbursed shall be included in the pilot's income as taxable compensation and all applicable taxes will be withheld."
Guys (and Gals), this could be a time bomb! Example: SIBA pilot that deviates (like 98% do). Not unusual to have deviation banks over $ 5,000 per month. Not unusual to spend this much on actual travel. This could mean paying taxes on this amount??? I know it sounds crazy, but read it...that is what it says. Also, there is a note way in the back of the TA about implementation dates and having to formally declare to be a commuter by March of 2007.
So what was the logic with this and how did it get tacked on to the end of Section 8?
I'm going to have to think about this some, but this smell a lot like IRS junk. If that is correct this is going to fall in the commuting to/from your "tax home" to your place of work. Commutes to your primary work location from your tax home are not deductable. I'm sure you currently don't deduct your jumpseat expenses to get to MEM so now the company is trying to slam us for it. This will get really complicated. If I have a ticket the previous day am I commuting to work? What if I don't indicate this on my expense report? There are lots of transportation worker rules that I really don't remember with regard to my taxes.