Ok question. How do we claim per diem or is that already adjusted on our W2? Also how and where do we claim student loan interest paid?

 

Go spend $35 on turbo tax and it will answer all those questions for you.

 

Does it have a database for pilot taxes or does it merely look at the code given for per diem?

 

Turbo tax has the rules for DOT time limited employees (which we are), but it will try to discourage you from claiming you are DOT by saying something like "except in certain cases."

 

There is a website EZPerDiem.com - Per Diem Tax Rates & The Per Diem Calculator for Flight Crews! that can help you with that.

They specialize in helping you calculate the authorize Per Diem of your overnights at a very reasonable price. $29.95. You will most likely make that up in your first overnight. Plus if you use the promo code C1Q4L you will get an instant 10% off that price.

As for your taxes, they have a companion website called EZCrewTax.com - Flight Crew Tax Preparation that will help you do your taxes. Again, use the code C1Q4L to get a discount.

Taxes aren't fun but these sites definitely makes it easier.

I wrote on my blog about how it works and you can visit my entry here: Get More Out of This Year's Tax Return - Almost the Speed of Sound

Good luck!

 

Intuit Tax Freedom Project

If you're making less than 30,000 a year go to this website and your federal tax return will be free. If you live in a qualifying state, the state return is free too. Its the same app as the online turbo tax, but its free if you make less than 30K or are in the military. Many of us unfortunatley fall in that category.

Like cospilot said if you use EZperdiem.com in conjunction with turbo tax (theres a free guide on experdiem.com) it can save you alot of money.

Also, cospilot, thanks for the discount code.

 

Not just Intuit - this is from irs.gov :

http://www.irs.gov/efile/article/0,,...html?portlet=4

Free for 56k AGI or less. No help with the per diem question, though.

 

Does anybody know if there is any place where I can see a standard list of deductions? Anybody know if hotels needed for commuting are deductible or not? I have heard a couple of different answers to this. Also, looking to see if hotel needed for training would be deductible.

Thanks in advance.

 

Internal Revenue Service

and

usually not

but ...

My friend, this is not the place to get that sort of information. Earlier in the thread there's a web address to a firm that specializes in this sort of thing - and it's not the only company. If you're not comfortable with where one of the tax programs (software) leads you then find a good accountant. Taking tax advice from a pilot is a sure path to trouble.

 

Here's my tax advice, and yes, I'm a pilot. Spend the money the first year and have a pro do your taxes. Ask questions. You'll figure out real quick what you can deduct and what you can't. It's not rocket science. You then can do your own taxes until there is a major life change.

Personally, I never take investment nor tax advise from pilots.

BTW, you can't legally deduct the cost of your crash pad or hotels at your base. Student loan interest can be found on any of the tax prep software. Per diem is as follows:

Accept what your company gives you. No receipts required

Find the difference between what your company paid you and what the government allows it's employees. That can be written off as a business expense. No receipts either.

Find the difference between what the company paid you and what you actually spent. Write this off as a business expense. You must provide receipts for everything.