You are in the transportation industry if your job:
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Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and
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Regularly requires you to travel away from home, and
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Usually involves travel to areas eligible for different standard meal allowance rates during any one trip.
Long-distance (OTR) truck drivers, flight attendants, and commercial airline pilots are classic examples of transportation industry workers as defined by the IRS.
The IRS gives transportation industry workers a special standard daily meal allowance as follows:
- The standard daily meal allowance is $63 ($68 if traveling outside the continental United States).
In addition, transportation industry workers can deduct 80% of their unreimbursed allowance (per diem) instead of the usual 50%.
In addition, you can deduct any expenses not reimbursed by the employer that you need for work.
Dry cleaning and rollaboards are obvious allowable deductions but have you considered your shoe shines or printer supplies? Or cell phone, laptop / iPad and Internet charges? There are numerous expenses associated with being a crewmember which are recognized by the IRS as employment-related deductions.
Myth Buster #1- Van Tips are not deductible! The IRS already gives you $5 per overnight for incidentals in your per diem deduction (and higher for international destinations). Shhhh! Let’s not tell them we usually tip less!
Myth Buster #2- Crashpads are not deductible. Unless you are on a TDY or temporary work assignment, crashpads are considering commuting costs and are not deductible. Same with parking passes. Read the Tax Court Case about a United Pilot if you like. Don’t believe the hype. Sure, your buddy has been deducting it for years- still doesn’t make it right.
My pilot clients love this expense report page to track what they spend. Check it out.
https://www.watsoncpagroup.com/flight-crew-expenses/
