Pilot Tax Q: Per Diem Deduction?
02-24-2008, 07:42 PM
#12
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03-30-2008, 09:44 AM
#15
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Pro Diem Update
OK, I tried Pro Diem this year...they calculated my absolute maximum allowable deductions based on actual length of overnights, and the city-specific per-diem rates.
I am allowed $7500 in travel deductions for 2007....after subtracting out the $4800 in non-taxed per diem I was paid, I get a $2700 deduction.
That's a lot more than I could have easily calculated.
Note: I go to Canada and expensive west coast cities a lot. If you fly mostly into smaller, cheaper towns you might not see as large a benefit from Pro Diem.
I am allowed $7500 in travel deductions for 2007....after subtracting out the $4800 in non-taxed per diem I was paid, I get a $2700 deduction.
That's a lot more than I could have easily calculated.
Note: I go to Canada and expensive west coast cities a lot. If you fly mostly into smaller, cheaper towns you might not see as large a benefit from Pro Diem.
12-02-2010, 02:33 PM
#16
Done Dreaming
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Originally Posted by furloughman
I agree, Prodiem is the way to go. No worries!
12-04-2010, 06:39 PM
#17
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If you want the absolute max in deductions, you have to log everything that you spend for meals and incidentals. Don't forget the taxi to the resturant, the haircut and shoeshine on those week long trips, the gym fees away from home that you would not have to pay at home since you have a local gym membership, as well as those really nice meals you enjoyed in NRT or SIN. Remember that individual meals of up to $75 (see IRS Form 2106 instructions) do not need receipts. Still, don't try to claim a $74 breakfast in East Lansing before a 5AM departure. IRS agents may be dumb, but not that stupid.
Also include uniform purchase and cleaning, flashlights and batteries, logbooks, etc.
You will still have to reduce your deductions by your untaxed per diem. Your day trip perdiem is already in the taxable income box of your W-2.
Joe
Also include uniform purchase and cleaning, flashlights and batteries, logbooks, etc.
You will still have to reduce your deductions by your untaxed per diem. Your day trip perdiem is already in the taxable income box of your W-2.
Joe
12-06-2010, 05:14 PM
#19
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Yes. Normally per diem doesn't show up in the taxable income block on your 1099. You could just let it go at that. However if your per diem isn't up to the government rate, you can declare the per diem as income and then deduct the government rate on form 2106. The difference between the two is transfered to schedule A, line 21. Then schedule A is transfered to your 1040, line 40a.
It's a function of how many nights (or really required rest periods) you spend on the road and what you're getting for per diem.
It's a function of how many nights (or really required rest periods) you spend on the road and what you're getting for per diem.
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