The current tax bill moving through the congress has a provision for "no tax on overtime" but unfortunately as it is written it wouldn't apply to airline crew. Where are the unions on this and what can we do to get that language changed? This could be worth 50-100k a year for captains in saved taxes depending on what would be considered overtime.

Currently it defines "overtime" as more than 40 hours in a week and exempts "high earners" which is around 380k a year I believe. Simple language such as "except for airline crew where overtime will be defined within their collective bargaining agreement and there will be no cap on earnings". Very interested to hear from anyone with more experience on these matters what is the best way to handle this.

not trying to be political here and not interested in the debate anyways just trying to put more greenbacks in all of our pockets.

 

I hear you, but the point of this is to aid the avg American scraping by on 60K/yr with a family of 4. Their extra shifts they pickup with no tax bringing them to whatever they can limit; so some may touch six figures with the top couple K being tax free, thats huge.

Contact your rep and see what the PAC is sniffing into.

No public outcry for us making 250K+ to get a break. I wish, but nah, not for us.

 

Well yeah no public sorrows for the airline pilot lol I understand that I was just hoping that we could benefit from this as well.

 

They are talking about extending the lower tax rates so we get about 2% overall savings.

 

High earners are defined as those making 160k or more a year. So even without the 40 hours a week definition, this has no chance of applying to airline pilots. Also the tax break expires after 2028.

 

0% chance politicians in 2028 would allow this to expire in 2028. If this passes, it’s going to stay.

 

LOL you thought this would apply to us, the people paying the majority of taxes. Someone has to pay them, the rich are getting a huge cut, and the poor don't pay that much to begin with as a percentage. Get that corporation started and start paying yourself with stock, you'll do a lot better.

 

I didn't think this would apply to us to begin with just hoping that we COULD get this benefit. The rich pay the vast majority of taxes and more than half of people pay no net taxes at all.

All of that aside though not trying to argue any tax policy or the merits of paying taxes just hoping to give pilots the option to have some tax exempt income.

 

529, 401K, and HSA are all tax free. No income limits. I would argue those are for high income earners. How many households making $70K a year can pump those up every year?

As far as half the country not paying taxes. Not true. They pay plenty of sales, property, county, car, school, sewer, etc.. In my FO days I paid very little income taxes because of all the write offs available then. My taxes increased in 2017 because I can’t write anything off anymore. Increasing SALT tax deduction will help but will easily hit the proposed limit.

As my friend says “Most people would love to have to pay as much as we do. It just means you are doing very well”. True.

 

My taxes also went up in 2017. This bill should actually cut my taxes because they sort of fixed the SALT cap. (Even though I think it’s a bad bill overall)

I will also hit the 40k SALT cap, but it will help. I liked how the Democrats had a proposed 80k cap in 2022, but unfortunately one senator shot that down.