There are several items that you will use for your job and your required travels that are deductible from your airline income. A majority of your itemized deductions will come from your airline professional expenses. First, let's address the subject of receipts and documentation. The IRS does not require a receipt for any travel related expense that is less than $75. However, you must have a written account of these expenditures in your logbook or personal organizer. The IRS requires this written record to show type of purchase, purchase price and date. For more information in record keeping check out the web page to the left. A complete list of all of the flying related deductions are listed in the Client Organizer. You may download our Client Organizer or complete the request information and we will send you one!



Satellite/Co-Terminal Transportation:

If you are based in a location that covers more than one airport, you may be able to deduct the transportation to the second airport that you travel to for your flight. Examples of this are the New York base which covers three airports, LGA, JFK and EWR. In this situation, transportation from your home to the office is not deductible, but transportation to a point beyond your office is. In the Flight Attendant situation, the office is determined by where you have your mailbox. If you are based in New York, your mailbox is probably at LGA therefore, you may be able to deduct your transportation to JFK and EWR from LGA. Another airport where this deduction is allowed is Washington which covers DCA, IAD and BWI. Los Angeles has three airports as does SFO. Chicago and Dallas may also qualify if you have flights out of either Midway or Love Field. Please feel free to contact us with any questions you may have on Co-Terminal Transportation!



Commuting:

NO...IT IS NOT DEDUCTIBLE! Basically, if you commute, you have several expenses that will not be deductible. For example, a crash pad, commuting to and from, parking, none of these are deductible for work related expenses. Why? Remember when you signed on that dotted line and said you loved people, you love to fly and you'll GO ANYWHERE? The IRS determines commuting to be of your own free will. The company does not make you commute and the IRS doesn't make you commute...thus... the expense is your obligation. You probably hear from other Flight Attendants and Pilots on the line that they have always taken this deduction. If you hear them say this...then they have NOT been audited by the IRS. The old saying of innocent until proven guilty is true, if you are not audited then the IRS does not know that you are taking this deduction. Chances are that you will be audited because commuting can be a very large expense and when combined with your other legal deductions would probably red flag your return for an audit.

That said...to every rule there is an exception. If you do commute, there are a few times where your transportation and hotel/crash pad expenses may be deductible. This deduction is for times you commute to your base for company training, a company meeting, i.e. with your supervisor, union meeting/rally or some other type of situation where you are required to be at your base and you are not paid flight time. Generally, this will only happen 3 to 5 times a year. You will see the section on the Client Organizer where the information for this deduction is taken. You may have several questions on this subject, please don't hesitate to contact our office to discuss your individual situation.



Per Diem Deduction Information:

As you know, the company pays you a per diem for each hour you are away from base. The government allows you a deduction for each day that you are away from base. This deduction depends on which city you layover in. The IRS states that you can either itemize each city you fly to or you may take a standard rate. If you fly domestic, this standard rate can work to your advantage. If you fly any international trips, it is well worth itemizing out your layover cities. The standard rate for International is $58 per day where as the daily rate for a common city such as London is $173 per day. We must have your schedules to determine where and how long you laid over. You can either provide us with your monthly schedules or complete the monthly grid that is located in the Per Diem Deduction Information section of the Organizer. If you just flew domestic, the IRS will allow us to use an average rate based on the number of days you flew. Turn arounds are not included in this deduction. Once we calculate the total amount you are allowed, the total non-taxable per diem that you were paid by the airline is subtracted.

Note: If you fly any International, and your tax practitioner does not ask you for your schedules, you are losing money. Very few accountants are aware of or have access to the allowable government rates. If you have any questions on the per diem deduction information, please do not hesitate to contact our office.



Computer & Peripheral Expenses:

IMPORTANT TAX UPDATE: The IRS has made a special Letter Ruling (#8615024 & Bryant, U.S. Ct. App. 3rd cir. 74 AFTR2d 94-5440) disallowing a deduction for home computers. The ruling states... "Despite legitimate business use, employees generally may not write off the cost of the computer. By law, a computer must be used for the convenience of the employer and required as a condition of employment." IRS interpretation of this rule makes it difficult to deduct depreciation even if the computer is used only for company work.

In private rulings, the IRS ruled an individual may not claim depreciation when the purchase of a computer is optional and not absolutely required by their employer as a condition of employment.

A deduction has even been denied when an employer offers to help pay for a computer, provide an interest-free loan or even offers courses for using it. This is the situation for American and Delta employees where the company has supplemented the purchase of home computers.

This is obviously a set back to flight personnel - since most of us use our home computers for bidding, trip trades and airline communication purposes. It is, however difficult to qualify this computer, under the new IRS requirements, as being "required" by the airline and as a "condition of employment". What this basically means is that the airline would not hire you unless you own a computer and your job would be in jeopardy if you did not purchase one.

Regulations do change, and we are hoping that this specific ruling will be changed or overridden in future. We will keep you informed of any future updates.