Tax question
#1
Tax question
I have always used a tax guy in the past. I look at my tax forms and it doesn't appear he does that much special for a few hundred bucks. The exception is per diem. Has anyone used Pro Diem? Do you basically get a number/form to plug into your tax stack or something that I can just plug into Turbo Tax? Was considering doing Turbo Tax this year and Pro Diem and saving a few hundred bucks. I have a home based business as well and it appears TT walks you through that stuff pretty well.
Just curious what some of your experiences have been.
Thanks.
Just curious what some of your experiences have been.
Thanks.
#3
I use pro diem. The advantage is that they determine whether to use the standard per-diem rate, or the city-specific rate. You have to choose to use one or the other for the entire year. Which one is right for you depends on where you fly and how often.
If you're a long-hauler, and stay in Tokyo, HKG, Narita, etc use city-specific.
If you fly a 1900 into small trailer-park meccas in the south and midwest, use the standard rate.
Anything between those extremes, and you need to calculate it out to see which option provides the best return.
If you're a long-hauler, and stay in Tokyo, HKG, Narita, etc use city-specific.
If you fly a 1900 into small trailer-park meccas in the south and midwest, use the standard rate.
Anything between those extremes, and you need to calculate it out to see which option provides the best return.
#4
Gets Weekends Off
Joined APC: Oct 2005
Position: 737 Right
Posts: 951
I agree with the above. I have been using the online version of Turbo Tax for years and found it to work great (as long as you have a basic understanding of how income taxation works). The per diem calc will take some time to figure out unless you've been keeping track of it throughout the year, but Rickair's suggestion gives you a good rule of thumb.
As long as we're on the tax subject, another question:
It's my understanding that interest paid on a Sallie Mae career training loan disbursed to a flight school is not tax deductible because a flight school is not an accredited institution and flight training does not progress toward a degree of higher learning.
Anybody have insight or information to contradict this?
As long as we're on the tax subject, another question:
It's my understanding that interest paid on a Sallie Mae career training loan disbursed to a flight school is not tax deductible because a flight school is not an accredited institution and flight training does not progress toward a degree of higher learning.
Anybody have insight or information to contradict this?
#5
This is what IRS Publication 17 has to say about student loan interest deductions:
Student loan interest is interest you paid during the year on a qualified student loan. It includes both required and voluntary interest payments.
This is a loan you took out solely to pay qualified education expenses (defined later) that were:
-For you, your spouse, or a person who was your dependent (defined in chapter 3) when you took out the loan,
-Paid or incurred within a reasonable period of time before or after you took out the loan, and
-For education provided during an academic period for an eligible student.
Eligible student. This is a student who was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential.
Enrolled at least half-time. A student was enrolled at least half-time if the student was taking at least half the normal full-time work load for his or her course of study.
Eligible educational institution. An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions.
The educational institution should be able to tell you if it is an eligible educational institution.
Student loan interest is interest you paid during the year on a qualified student loan. It includes both required and voluntary interest payments.
This is a loan you took out solely to pay qualified education expenses (defined later) that were:
-For you, your spouse, or a person who was your dependent (defined in chapter 3) when you took out the loan,
-Paid or incurred within a reasonable period of time before or after you took out the loan, and
-For education provided during an academic period for an eligible student.
Eligible student. This is a student who was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential.
Enrolled at least half-time. A student was enrolled at least half-time if the student was taking at least half the normal full-time work load for his or her course of study.
Eligible educational institution. An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions.
The educational institution should be able to tell you if it is an eligible educational institution.
#6
Gets Weekends Off
Joined APC: Oct 2005
Position: 737 Right
Posts: 951
Yes, I've read that several times before.
I never thought to check with the flight school... I suspect they'll advise me to "contact a tax professional," but it's worth a shot.
I guess the question I'm asking is: are flight schools typically considered "eligible educational institutions?" My interpretation and experience says no, unless perhaps the flight training was done in conjunction with a college degree (i.e. UND, Riddle, CWU).
I never thought to check with the flight school... I suspect they'll advise me to "contact a tax professional," but it's worth a shot.
I guess the question I'm asking is: are flight schools typically considered "eligible educational institutions?" My interpretation and experience says no, unless perhaps the flight training was done in conjunction with a college degree (i.e. UND, Riddle, CWU).
#7
Are we there yet??!!
Joined APC: Apr 2006
Posts: 2,010
Define Flight School. If you mean FlightSaftey and the like, my understanding is that it IS deductible because you are furthering your career. Plus the "school" has to be approved by Sallie Mae to get the funds. If you are getting your seaplane rating, I could see that also being deductible but working on your private or commerical would not be deductible because you would be changing career fields.
#8
Gets Weekends Off
Joined APC: Oct 2005
Position: 737 Right
Posts: 951
Ok, I just checked with Sallie Mae, and it appears the interest on my loan is not eligible for a deduction.
It seems like I go through this every year when I'm trying to squeeze every little bit I can..... I'll make a note in my file so I don't worry about it next year.
It seems like I go through this every year when I'm trying to squeeze every little bit I can..... I'll make a note in my file so I don't worry about it next year.
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