As the end of the year approaches, airline crew members usually begin thinking about long holiday delays, deicing, and full planes from Thanksgiving to Christmas.
At this time of year airline crew should also be thinking about income taxes and tax planning for the coming year.
Year end tax planning is important because airline flight crew travel deductions are unique and need to be done correctly to maximize your tax benefit.
Now is a good time to start thinking about is getting your tax records in order.
To find those receipts you tossed into drawers and shoe boxes throughout the year.
Now may also the time to consider whether any work related purchases made before year end in order might be deductible this coming tax season.
Have you been thinking of buying a new roll aboard bag? If you itemize deductions and meet certain restrictions it could mean a bigger tax refund if you do.
Or maybe that new headset that doesn't clamp your head like a vice.
That may be another possible deduction.
What about uniforms? Replacing a couple worn out shirts and a coffee stained tie before year end could increase your current year refund under the right circumstances as well.
And speaking of uniforms, what about dry cleaning? Did you save all those receipts stapled to your dry cleaning bags when you got your uniforms cleaned? If not, did you know that a lot of dry cleaners can now print you out an itemized list of all the dry cleaning charges you paid them throughout the year? Almost as important as knowing what to deduct is knowing what the IRS doesn't allow as a deduction.
One that always comes up is crash pads.
No, the cost of a crash pad is generally not deductible.
"But my guy did it last year!" people say.
Just because someone got away with it last year doesn't necessarily mean it was properly accounted for.
I heard of another case where a pilot tried to write off haircuts because his airline required him to meet company grooming standards.
He claimed that if not for the job, he would grow his hair out like a wild man, so the cost of his haircuts should be a deductible employee business expense.
Unfortunately the taxing authority disagreed in his case.
Per Diem is probably the biggest most confusing write off I am asked about.
The per diem computation can be confusing, and to make matters worse, federal per diem rates are regularly updated by the government for hundreds, if not thousands of cities throughout the US and worldwide.
Keeping track of all the updated rates is probably not feasible for most airline crew members.
The best way to get your airline crew taxes and per diem done right is to work with a certified public accountant who is also an airline pilot.
Someone who knows the business and has developed a proprietary computer program that is continually updated with the latest government per diem rates so that your deduction is done right and maximized to your benefit.
Now is the time to get busy gearing up for the coming tax season.
Getting the right tax help is key to maximizing your deductions so you can focus on flying your trips rather than spending lots of time each year trying to become an expert at the tax code.
Note: This article does not constitute tax advice and is not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer.
At this time of year airline crew should also be thinking about income taxes and tax planning for the coming year.
Year end tax planning is important because airline flight crew travel deductions are unique and need to be done correctly to maximize your tax benefit.
Now is a good time to start thinking about is getting your tax records in order.
To find those receipts you tossed into drawers and shoe boxes throughout the year.
Now may also the time to consider whether any work related purchases made before year end in order might be deductible this coming tax season.
Have you been thinking of buying a new roll aboard bag? If you itemize deductions and meet certain restrictions it could mean a bigger tax refund if you do.
Or maybe that new headset that doesn't clamp your head like a vice.
That may be another possible deduction.
What about uniforms? Replacing a couple worn out shirts and a coffee stained tie before year end could increase your current year refund under the right circumstances as well.
And speaking of uniforms, what about dry cleaning? Did you save all those receipts stapled to your dry cleaning bags when you got your uniforms cleaned? If not, did you know that a lot of dry cleaners can now print you out an itemized list of all the dry cleaning charges you paid them throughout the year? Almost as important as knowing what to deduct is knowing what the IRS doesn't allow as a deduction.
One that always comes up is crash pads.
No, the cost of a crash pad is generally not deductible.
"But my guy did it last year!" people say.
Just because someone got away with it last year doesn't necessarily mean it was properly accounted for.
I heard of another case where a pilot tried to write off haircuts because his airline required him to meet company grooming standards.
He claimed that if not for the job, he would grow his hair out like a wild man, so the cost of his haircuts should be a deductible employee business expense.
Unfortunately the taxing authority disagreed in his case.
Per Diem is probably the biggest most confusing write off I am asked about.
The per diem computation can be confusing, and to make matters worse, federal per diem rates are regularly updated by the government for hundreds, if not thousands of cities throughout the US and worldwide.
Keeping track of all the updated rates is probably not feasible for most airline crew members.
The best way to get your airline crew taxes and per diem done right is to work with a certified public accountant who is also an airline pilot.
Someone who knows the business and has developed a proprietary computer program that is continually updated with the latest government per diem rates so that your deduction is done right and maximized to your benefit.
Now is the time to get busy gearing up for the coming tax season.
Getting the right tax help is key to maximizing your deductions so you can focus on flying your trips rather than spending lots of time each year trying to become an expert at the tax code.
Note: This article does not constitute tax advice and is not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer.