Pilot Tax Q: Per Diem Deduction?
 

OK, I know that for each overnight I can deduct either the federal average daily per diem rate OR I can take the specific per diem rate for each local...

What I'm unclear on...

- Do I have to subtract my airline per diem from the federal per diem amount? I think that I do, since I didn't get taxed on my airline per diem.

- Do I have to itemize this on a daily basis, or can I subtract ALL of my non-taxable per diem for the year from the total of my deducatble federal per diem?

Also what about partial travel days, ie the first and last day of a trip?

Thanks for any info.

Rick, I struggle with this every year. There are good publications available on the IRS web site and several companies that will calculate the maximum amount for you for a reasonable fee.

I know the 2106 form is involved and you are looking for "Expense in excess of reimbursement" so you are on the right track. I always get screwed up in the middle of calculating the deduction so I usually end up plugging away in Turbo tax until I see the refund increase. :D Sorry I can not be of more help but I have not started taxes this year yet.

You can take the specific per diem rate for each local but you must be able to show it in a log format. If you are only doing North America, you are proably wasting your time for meer pennies unless you employer doesn't pay per diem at all.

There is a program out there called Pro Diem that will do the calculations for you if you enter the layover info. The beautiful part is it splits days in 1/4 and help maximizae you deduction. It increased my per diem expense by $6000 but then again all my flying is international to expen$ive cities.

Yes you have to subtract the amount your company reimbursed you from the total amount you are allowed to claim.

You can itemize but usually it is easier to just use the standard rate.

Partial travel days must be prorated at 75% (first and last day of trip).

Be sure to use the 2006 amounts found at http://www.gsa.gov/Portal/gsa/ep/con...Type=GSA_BASIC

OK, thanks.

So let's say I take the standard rate daily rate ($52) do I now have to calculate the exact amount of per diem paid for each day and subtract that from $52? That would be a real PITA...

Or perhaps I can take all of my per diem for the year and subtract it from the total of my government standard entitlement?


My tax guy has been screwing this up for years, I'm almost sorry I decided to try to get it straight :mad:

The method I use is to total the amount of full overnights (not first or last day of trip) and multiply that by $52. Then total the amount of partial overnights (first or last day) and multiply that by $39 (75% of $52). Add those together and subtract the amount the company reimbursed you. That number is your deduction amount. Remember not to use day trips because that per diem is taxable.

Thanks! One more Q...can I deduct the government rate for a partial travel day ($39) when I do a day trip? Or is there no allowable deduction for those?

As far as I know day trip per diem is taxable. Therefore no deduction allowed.

where do you guys get that $52 rate from on the federal per diem? all i can find is $39 per day. thanks for the help

Download IRS Publication 463

Page 6...Special rate for transportation workers...