planejoe

There is an ad on APC for Breeze which states "Learn about our $2,000 commuting fund" but when you click on it, it takes you to the main Breeze page. Can't find any more info on it.

Is this being currently distributed to all pilots?

Naviator

They just changed this program last week. Now it is optional. They've taken the $2000, plussed it up for Federal taxes and rolled it into the hourly rates. There is now an option for commuting pilots to redirect $1,000, $2,000, or $3,000 per month to a tax free business expense account to cover commuting expenses.

This way if you have commuting expenses you can pay them with tax-free dollars and if you do not you still get the money, you just have to pay taxes on it.

planejoe

Thanks. And that was rolled into the rates in addition to $105 per hour year 1 FO or it's already included in the $105?

sailingfun

Commuting expenses are not tax free to your domicile. If the company gives your 2k to commute from home to your primary domicile you will owe taxes on that money. If it’s to commute to a temporary assignment the money would be tax free. Every airline I know provides transportation to temporary assignments so that should not come into play.

“Just to clarify, commuting expenses are not deductible. The time you spend traveling back and forth between your home and your business is considered commuting, and the expenses associated with commuting (standard mileage or actual expenses) are not deductible as a business expense.

You cannot deduct commuting expenses no matter how far your home is from your place of work. Consider it like this: Everyone needs to get to work, employees and business owners alike, so this expense is not part of your specific business.”


“Can I deduct commuting expenses to and from work?
Unfortunately, commuting costs are not tax deductible. Commuting expenses incurred between your home and your main place of work, no matter how far are not an allowable deduction.

Costs of driving a car from home to work and back again are personal commuting expenses. This is also true for fares you pay to ride any of the following to and from work:

Bus
Trolley
Subway
Taxi
You can deduct daily transport expenses when you travel between your home and a temporary work location. A temporary work location is one that’s expected to (and does) last for one year or less. Usually this must be outside the metropolitan area where you live and normally work.

You can deduct the expenses for going between your home and a temporary work location if:

You have one or more regular work locations away from your home.
The work is in the same trade or business as your permanent work, regardless of the distance.
If your home is your main place of business, you can deduct transportation expenses you incur. The expenses must be for going from your home to another work location in the same trade or business”

Naviator

that’s where the increase came from.

Tpinks

yes, after having looking through IRS pages and Regs, I believe the company is setting up pilots to get audited with this new program if they enroll. And the company has already flat out said they are not providing any support if that happens.

The previous commuting funds were indeed tax free though as it was through a tax free stipend. Now, W2’s are going to show wages earned and then a reduction which to me will immediately raise red flags with the IRS.

For me, this “raise” has resulted in a reduction of over $2500 in net income because of the tax brackets I have now been pushed into.

Tpinks

10 Pilots have left the company since September. Mix of Ejet and 220 guys.

Naviator

Commuting expenses are not deductible by an employee from their wages. However a company can choose to pay the commuting expenses in lieu of wages and deduct it as a business expense to the company. This is what it seems Breeze is doing. As long as the set aside commuting dollars never hit the W-2 as wages there will not be a problem.

sailingfun

Unless you get audited! It doesn’t matter how the company lists the income. If there was a way to do this legally every airline would do it. If for example you are provided a company car to drive to and from work you have to determine the value of the use of that car and claim it as imputed income. Same if you get a company paid life insurance policy.

Duckdude

For me, this “raise” has resulted in a reduction of over $2500 in net income because of the tax brackets I have now been pushed into.[/QUOTE]

Getting a raise and being pushed into a higher tax bracket doesn’t reduce your net pay. The higher tax rate only applies to the AGI you make above that amount.