Contract Pilot Tax question
#1
Gets Weekends Off
Thread Starter
Joined APC: Feb 2017
Posts: 1,280
Contract Pilot Tax question
Not sure if this is the correct spot....
I did some contract flying last year and am now getting the 1099-misc from the companies.
One company sent me the form with just the day rate amount. The other company sent me one with the total amount (day rate, meals, hotels, airline...).
It seems to me that the first company (day rate only) is the correct one. I pay my taxes on the amount of compensation I earned.
If I claim the second company amount, I'm paying taxes (federal, SS, medicare) on hotels, meals, airline tickets...that seems absurd.
Any thoughts on this?
I did some contract flying last year and am now getting the 1099-misc from the companies.
One company sent me the form with just the day rate amount. The other company sent me one with the total amount (day rate, meals, hotels, airline...).
It seems to me that the first company (day rate only) is the correct one. I pay my taxes on the amount of compensation I earned.
If I claim the second company amount, I'm paying taxes (federal, SS, medicare) on hotels, meals, airline tickets...that seems absurd.
Any thoughts on this?
#5
On Reserve
Joined APC: Aug 2018
Posts: 13
You report income. Then sort out whether it's taxable or not. And, in your case you will need to report all amounts as 1099 income. If you don't, the IRS will see it as under reporting based on the copy of the 1099 the second company sent to the IRS. Then the letters come, penalties and fees.
If you incurred similar expenses for the first company and did not get reimbursed, you MAY be able deduct them to the extent they may be for "qualified business expenses".
If you incurred similar expenses for the first company and did not get reimbursed, you MAY be able deduct them to the extent they may be for "qualified business expenses".
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