How do you figure out your per diem deduction

[cfi_greg]

I keep scratching my head here. I figured out all my overnights and their respective conus rate. (I have way too much time sitting on my butt in the crew lounge I know) I added them all up. Now is that the number you use on your taxes or do you have to take what the company paid you in per diem and find the difference between the two? These may sound dumb I just need a little insight.

Cheers

 

[SplitBar]

Find the difference and then take 60%, thats your deduction.

 

[Nevets]

Take the difference then multiply by 75%. That is what you can deduct this year.

 

[ualdriver]

I keep scratching my head here. I figured out all my overnights and their respective conus rate. (I have way too much time sitting on my butt in the crew lounge I know) I added them all up. Now is that the number you use on your taxes or do you have to take what the company paid you in per diem and find the difference between the two? These may sound dumb I just need a little insight.

Cheers

HI Greg-

If you use tax preparation software like TaxCut or similar, it will do most of the hard stuff for you. Basically, the form that is going to figure out the per diem stuff is Form 2106, starting at line 5 (assuming the form is the same as last year). Basically you have to figure out what the IRS allows for per diem for your travels for the year and then figure out what your airline actually paid you in per diem. Make sure that you indicate that you're a DOT employee, and then you'll be able to deduct 70% (assuming it's the same as last year) of your unreiumbursed expenses. I think that unreimbursed per diem amount is subject to the 2% AGI threshold (like uniform costs, union dues, etc.), but I'm not sure.

Oh yeah, I'm not a tax pro. Use the above at your own risk

ualdriver

 

[CaptDave]

This is what I have concluded.

1) Alloted DOT perdiem is $52.00 per day.

2) You can use 75% of that if it is the first or last day of the trip.


3) Thus a 2 day trip is worth $78.00
4) A 3 day is worth $130.00
5) A 4 day is worth $182.00

6) Add up your trips.

7) On form 2106 you will enter that sum.

8) On form 2106 you will also enter what your nontaxable perdiem paid was by your company.

9) You will indicate the difference on form 2106

10) On form 2106 you will be able to deduct 75% of the number in the above #9.

Good luck.

PS. Generally 1 day trips are paid as taxable and do not have a DOT rest requirement away so they dont count. Also true for continuous duties or high speeds.

 

[cwebster2]

This is what I have concluded.

1) Alloted DOT perdiem is $52.00 per day.

standard rates are 52 domestic and 58 international but i find it more advantageous to use the actual rates. There are links in the FAA publications to the M&IE per-diem rates for both domestic and international cities.

You cannot mix and match the two methods, you either use all standard rates or all actual rates.

first and last day 75%.

add it up, subtract W-2 box 12-L, * 75% and that is your deduction.

note that its only worthwhile to do the deduction if you have a lot of stuff you can itemize, as form 2106 is a deduction on 1040 schedule A, and if you use that you cannot take the standard deduction (ie, its only worthwhile if sched A comes out to more than standard).

 

[cfi_greg]

Thanks for all the input. I need all the money I can keep my hands on. Second year on first year pay.

 

[Soverytired]

This is what I have concluded.

1) Alloted DOT perdiem is $52.00 per day.

99.9% correct. $52.00 is the "standard rate". If you're a glutton for punishment, you can go through your logbook and determine the CONUS rate for each city you overnighted in that wasn't your domicile. This doesn't take very long and can mean a bigger refund.

I think the $52.00 standard rate must either be pro-rated for your first and last day, OR just count it at 3/4 of $52.00 for your first and last day - your choice, but be consistent.

If you overnight mostly in major metropolitan areas or fly lots of international, it's DEFINITELY worth the effort of looking up the per-city rate.

 

[Soverytired]

http://www.irs.gov/pub/irs-pdf/p463.pdf

IRS publication 463 describes how to do all this in easy-to-follow detail (mostly). Download the publication, and pay particular attention to page 6, which will describe:

• 75% deduction (of the ME&I rate) available to you as a transportation worker
• Various acceptable methods of deduction (standard $52 or per-city basis and where to find them)
• Various acceptable ways to credit your partial days out of your domicile (pro rate by the hour or just use 3/4 of the ME&I rate for the first and last day)

Again, it's a great form, and should be required reading for those who wish to pay their own taxes and take advantage of this great deduction.

 

[SiuDude]

99.9% correct. $52.00 is the "standard rate". If you're a glutton for punishment, you can go through your logbook and determine the CONUS rate for each city you overnighted in that wasn't your domicile. This doesn't take very long and can mean a bigger refund.

I've tried that, but I'm having a problem finding East Jesus, IA.