Hey guys, quock question about income tax, if you comute to work, can you claim mileage, gas, and other expenses as work related? Im Two years away feom getting to the regionals but thought i ask since the conversation.
Thanks
Enrico
Enrico,
Anyone can claim anything they want on their taxes, whether it’s legal or not is another question. Now I’m no accountant, but according to the IRS’ Car and Truck Expense Deduction page (https://www.irs.gov/uac/car-and-truck-expense-deduction-reminders) they clearly state:
"It is important to note that costs related to travel between a taxpayer’s home and regular place of work are commuting expenses and are not deductible."
So I’m say saying no, but again, I’m not a professional so be sure to ask your accountant.
Adam
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I’ve been commuting to work for over 10 years, around 145 miles per day (thankfully I started working from home part time a few years back so it’s not daily anymore). Adam is correct, it is the employees reaponsibility to get to and from their “normal place of business” and those expenses are not deductible.
Sorry be resurrect this old thread, but my question seems to fit best here.
As a regional/major/legacy pilot, are you an employee or an independent contractor?
In all of the above instances, the pilot would be an employee.
Thanks Chris? Do you know if it’s even possible to be hired as an independent contractor?
Mardee,
It is not possible as pilots are covered under union contracts and the Railway Labor Act.
Out of curiosity, why would you want to be hired as an independent contractor?
Chris
I have my own company through which I could be paid and could defer some taxes as I pay down debt and only pay myself as much as I need to pay my family’s bills.
I know as a CFI with ATP I would be paid as an independent contractor, which would be great if I’m able to start down this path at some point. I was just wondering about life after ATP.
I don’t quite understand unions and how they work, but it sounds like they’re doing good for pilots right now!
Mardee,
Most pilots either love or hate their unions (I go both ways depending on the topic). Regardless and like it or not if you aspire to be an airline pilot in the US, and some pint you will be required to join and give them a piece of the pie.
Adam
Mardee,
ATP CFIs are independant contractors. I think that as you make more money, you will see the value in being an employee outweighs that of being an independent contractor.
Chris
Thomas,
It is a very popular misconception that bonuses are taxed at a higher rate than income, this simply isn’t true. Bonuses (in any field) are withheld at a higher rate, but it all filters out in the end when the individual files their returns.
The reason the move the compensation from a bonus to hourly rate is to help secure that rate for future pilots and build increases off of that.
Chris
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Thomas,
This is a very hot topic between our pilot group and company at Horizon. The pilots have tried to push back against the company’s decision to offer bonuses since the day the proposal was put on the table. The pilot group would much rather have the bonus money spread throughout the pay scale.
My theory is that it’s much easier for a company to offer signing bonuses than it is for them to change pay scales. The reason being is that when bonuses are no longer needed, it is easier for the company to stop offering them than it is to renegotiate a pay scale since contract negotiations happen on rare occasion. For example, Horizon’s current contract was changed in 2016 and is valid until 2024.
There’s a time and a place to discuss what’s fair. The union gives the pilot group a voice and I am thankful for that, but there is only so much we can do. Some pilots would rather complain about not getting what they wanted than accept that there are very few things that we can control in life. This goes for everyone, not just you, Thomas. Speak up for what you think is right, but also understand that change is inevitable, and change can make people uncomfortable. At the end of the day, our job is to fly the airplane.
Tory
Thomas,
As the guys said, the airlines are not going to convert the bonuses to straight pay unless they have to. It’s not a scam or “a catch”, it’s simply that they can be adjusted much easier than hourly wage. The worse the shortage becomes the higher the bonuses will go BUT should they catch up they can just as easily adjust back down. Any change to hourly wage requires a change in the contract and that’s never a simple thing.
Adam