As a pilot, covered under transportation workers, what all can I deduct?

[JulieH1]

You are in the transportation industry if your job:

• Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and
• Regularly requires you to travel away from home, and
• 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/

[flatlander77]

Is this true with the 2018 tax season?

[esy]

I have the same question: since the government no longer give out tax return on perdiem, is it still applicable on 2018 tax?

[gobamago1]

anyone knows the answer yet?

[patniven]

IRS Pub 463 (For use in preparing 2018 returns) still includes the meal allowance at $63 per day CONUS.

[jeidmann]

If there is still a deduction, TurboTax does not recognize it. I went through the trouble of entering in all of the information and it had no effect on my return...even when I increase the expense significantly (25k).

[Critter · Accepted solution]

NO,  if you are a W- 2 employee then job-related expenses were eliminated as a federal deduction by the new tax laws that went into effect for your 2018 return and beyond.    If you are a W-2 employee you cannot deduct a home office on your federal return, nor can you deduct job-related mileage, etc.

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-re...

What you saw in this thread was an OLD reply that was written before the tax law changed.  When the user forum changed over in June 2019 from Answer Xchange to Real Money Talk, the old replies migrated over with 2019 dates--- a very unfortunate and confusing side-effect of the change of user forums.

The TCJA eliminates itemized deductions for ordinary and necessary business expenses paid or incurred by a taxpayer as of Jan. 1, 2018. As a result, pilots who itemize their deductions are no longer able to deduct these expenses when filing their federal taxes.

Tax Reform - Magazine - ALPA

www.alpa.org › news-and-events › air-line-pilot-magazine › tax-reform

[jeidmann]

That makes sense, and that is what I thought, however, it raises two questions:

1. Why is there an option to select Transportation Worker in TurboTax 2018 if it has no effect on my return?

2. Why is this section in the 2018 IRS Publication 463 page 6?

Special rate for transportation workers.

You can use a special standard meal allowance if you work in the transportation industry. You are in the transportation industry if your work:

• Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck; and

• Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates.

If this applies, you can claim a standard meal al- lowance of $63 a day ($68 for travel outside the

continental United States) for travel between January 1, 2018, and September 30, 2018. You can claim a standard meal allowance of $66 a day ($71 for travel outside the continental Uni- ted States) for travel between October 1, 2018, and December 31, 2018.

Using the special rate for transportation workers eliminates the need for you to deter- mine the standard meal allowance for every area where you stop for sleep or rest. If you choose to use the special rate for any trip, you must use the special rate (and not use the regu- lar standard meal allowance rates) for all trips you take that year.

[Critter]

1) some states still allow the deduction 

2) non employees can still take the deduction on other tax forms ... that is general info for all