FDX - Per diem recap and Taxes
 

Anyone know, is the excludable allowance on the per diem recap the amount that you can deduct on your taxes from the monthly report?

Do you manually just add up each day's "Xcludbl Alownce" column and total it for the month and then add the monthly totals together for the yearly deduction? Is it really that simple and if so, why didn't the computer add that column too like the others?

Thanks!

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.

Has anyone compared the numbers to paying the Pro Diem guys to calculate it for $50 or whatever they charge now. Is there a big enough difference in the daily rates Fedex shows vs pro diems

Does it even matter once you hit the AMT range?

I did last year. ProDiem and FXCal were within a couple of hundred dollars. I used the FXCal numbers this year, since I'm in the AMT and it doesn't really matter anyhow...

I would make sure that the reimbursed amount you use matches your W2 amount. I believe that the W2 shows per diem reimbursed when it's paid not earned. To get the numbers to match I use Dec 13 thru Nov 14 numbers (paid Jan 14 thru Dec 14).

No. If you hit AMT don't waste your time calculating per diem. I started a post discussing this a few weeks ago.

Yes, under AMT, don't bother as your business MI&E deductions get washed out by the AMT.

If you're not in the AMT range it's a little more complicated than posted above.

1) you are subject to DOT rules so you get to use 80% and not the lower general business deduction for meals and expenses. You don't just automatically get to use the full government number that is provided by FedEx or the IRS tables.

2) you have to be away overnight from your base so out and backs pay you taxable per Diem although the FedEx payout doesn't reflect it. But, if you are audited, it would probably be caught.

3) you get to take only 3/4 of your deduction for days you operate to and from your base. So 4 trips that overnight at an outstation each day and turn through your domicile will garner you a lesser deduction than the exact same outstation trip that turns through OAK for your pairing with only the first and last days hitting MEM.

4) if you are on a trip that has multiple stops, you use the rate that you were on the ground over midnight local, or the next landing location unless that is the return to domicile, then you use the prior location.

ProDiem knows all these rules and your product reflects the correct information. I used ProDiem years ago and checked out their results thoroughly.

I have no idea how FXCal does the calculation so I can't speak to it. I do know you can't really use the FedEx product without some time invested in fixing some of their numbers. As long as you aren't audited, you'll never have to worry about it, but since all of the above tends to reduce your deduction, you would be likely to over deduct and your potential for penalty would be higher.

Last, remember that the amount in non-taxable per Diem you were paid by FedEx counts as money you were reimbursed for your MI&E expenses, so don't forget to put that on your IRS form or in TurboTax. This number is reported on your W2 in box 12 as code L. It will match your December 31st non taxable per Diem paid to you.

I'm doing all this from memory and on my phone, so I may have gooned some of my statements, but I'm close to being accurate. I'm sure that someone who can look it up, can provide links and any corrections.

Thanks All!

You're right. I should have mentioned that I'm an ANC guy, so all my trips are international, and I don't do O&Bs.