Flight Crew taxes made simple
Are you an airline pilot or flight attendant? Do you pay taxes?! If so, you might be missing out on a large tax deduction for airline crew members, the per diem deduction.
What's a Per Diem Calculation?
Most airline pilots, flight attendants, and corporate flight crews are paid per diem while they are at work. Your company pays you a certain amount, no matter where you are. However, the government has established per diem rates depending on what city you are in. The difference between these rates and what you are getting paid is tax deductible!
Great, your thinking. But how do I figure out what per diem rates the government uses for the cities I have had overnights in? That's where we come in...
STOP! TAX CODE CHANGES!
Important changes to tax code for your 2018 return
On December 22nd, 2017, President Trump signed the Tax Cuts and Jobs Act. This new tax legislation had a major impact on flight crew taxes.
- Most important is the elimination of the unreimbursed employee business expenses deduction beginning with 2018 tax returns.
- Simply put - the provisions under which pilots and flight attendants could deduct their excess per diem, union dues, uniform items, and other job-related expenses, are GONE.
- Starting with your 2018 tax return (filed early 2019), you no longer need to add up your trips to figure out your per diem calculation, as the deduction no longer applies.
- The elimination of the deduction is not permanent. Barring further legislation the deduction will be reinstated beginning in 2026.
Please stay tuned to this area as we will post further information throughout January of 2019. Thank you to our customers for your support throughout the years.
The Difference can be Substantial
Your per diem calculation will depend on what cities you often lay over in, and how much your company has reimbursed you already. The difference can be substantial, and often results in several hundred dollars of credit on your income taxes!
Using our calculator, you can determine exactly how much the government allows for the cities you have overnighted in.
Why Choose Us?
We aren't the only per diem calculator, but we think we are the best. Here's why: