Friday, August 22, 2008

For Airline Flight Crews, What is the Standard Deduction?

As an airline pilot or flight attendant you might have heard the phrase “standard deduction” around tax time. Or maybe you’ve heard your tax preparer use the phrase as well, and didn’t know what it meant. The answer is simple.

The IRS sets a determined value each year that allows you as a taxpayer to “write off” on your taxes. This amount is calculated based on what the IRS determines to be fair, common, or reasonable expenses that individuals accrue throughout the year. These expenses are cost of living, work related, and other expenses that a normal person experiences in everyday life.

The amount each year varies, and depends on which category you as an airline pilot or flight attendant are assigned to. The three categories are

  1. Single or married filing separately
  2. Married filing jointly or qualifying widow
  3. Head of household

In addition to the per diem deduction, EZPERDIEM.COM lists and helps pilots and flight attendants calculate their airline related employee business expenses.