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It is a  well known fact that the airline you work for probably pays you less “Per Diem” than you are eligible, if any at all. And now that tax season will soon be among us, January 15th, I think, you need to know how you can get more money back from the IRS, if you are a pilot or flight attendant.

The definition of “Per Diem” is a sum of money paid to an employee to cover daily expenses or Meals and Incidental Expenses (M&IE) which is usually not taxed.

 Checkout EZPerDiem.com Now
(USE THIS CODE: “C1Q4L” and save 10%)

For example, my airline pays its pilots about $1.65 per hour from the moment they check-in for duty till 15 minutes after they block out (i.e., door open). So in a 24-hour period, they pay me approximately $39 per day to cover my Meals and Incidental Expenses (M&IE). However, according to U.S. General Services Administration (http://www.gas.gov), if I overnight in Chicago, I am authorized about $64 per day which is a difference of about $25.

Now, take that and multiple it times ALL your overnights. That can add up to a lot of money that your company owes you, and the government will pay you.

If you want to go straight to getting money back on your taxes, visit the EZPerDiem calculator sign-up and use the code, “C1Q4L” for an immediate 10% discount.

So who is most likely to benefit from the EZPerDiem deduction calculator?

Well…YOU!

But you may be asking yourself if you are eligible to use this program and get more money on your tax return?

Here is how you can figure that out:

1. If you don’t earn a enormous amount of money which is generally about every pilot except the highest paid captains at a major airline with 20 years service, you are most likely eligible.

2. If you have a mortgage, you most likely itemize tax returns, and therefore can use the program to get a BIGGER tax return.

3. If you have other employee deductions, e.g., flight bags, manual binders, uniform purchases, etc. You can use EZPerDiem.com to get more money back. Most pilots don’t know that they can take these deductions, but you can still use the EZPerDiem calculator even if you don’t take these deductions.

4. Your Per Diem reimbursement isn’t excessively high, i.e., lower Per Diem equals a bigger Per Diem deduction. See my example above about what my airline pays me.

5. You occasionally overnight in big cities, like Chicago or Los Angeles, or international cities like Calgary or Edmonton.
Note: Outside Continental United States (OCONUS) is usually higher than Continental United States (CONUS). Ching, ching!

So if you answered any these question with a “yes,” you will most likely benefit from the EZPerDiem.com calculator.

So here is what you have to do… 

First Test:

Basically, you have to itemize your tax return to get the most benefit. It is not as difficult as it seems. Most taxpayers are afraid to itemize thinking it is too much work but if you don’t you could be essentially letting Uncle Sam keep HUNDREDS of dollars of YOUR money.

If you just take the “standard deduction” for your taxes, the per Diem deduction will NOT increase your refund. Generally, if you pay mortgage interest, you are someone who itemizes and the per Diem deduction may increase your refund.

The EZCrewTax, the tax prep service for pilots, can help you with all of this.

Second Test:

The second test that helps you determine whether you will benefit is called the “2% limit.”

The 2% limit refers to all of your employee business expenses. It basically says that your employee business expenses must be more than 2% of your adjusted gross income (AGI) in order to benefit. The Per Diem deduction is one component of your employee business expenses. Other employee business expenses may include a roller bag, flashlight, unreimbursed uniform expenses, etc. If these deductions exceed 2% of your AGI, you may benefit from the Per Diem deduction.

Third Test:

The third test is the amount you are reimbursed from your company. If your company pays you a lot of Per Diem, you are less likely to benefit from the EZPerDiem calculator. That is because the Per Diem deduction is to allow you to recover the difference between what the government allows you and what your company reimbursed you. If you were fully reimbursed, then you would get no benefit from this deduction. If you were only partially reimbursed, you get a deduction based on the difference.

Final Test:

The fourth and final consideration is determined by the cities you overnight in during the tax year. International trips and trips to high-cost cities such as Chicago, Los Angeles, and New York, will yield a higher deduction than trips to overnights like Peoria, Illinois, or similar small cities.

So can you see the benefit?

It is easy to sign-up and you may easily recover the cost of using the calculator on your first or second city.

- The EZPremium Per Diem Calculation, Expense Processor, and Full 2106 Form Generator -
ONLY costs $44.95 but use the code “C1Q4L” and you get 10% OFF.

- The EZStandard Per Diem Calculation and Expense Processor -
is ONLY $29.95 and if you use the code “C1Q4L” you immediately get 10% OFF.

Click here to get started! It’s F.R.E.E to start!

Be safe and save money this tax season…

Jeffrey

P.S. Last year, 2008 taxes, I was able to recover over $300 on my taxes. So what are you waiting for? Click here to go directly to the EZPerDiem website.

BONUS: If you sign-up for either EZPerDiem or EZCrewTax and use the code, C1Q4L, then send me a copy of your receipt, I will send you a copy of “The CRJ200 Quicknotes Study Guide” for F*R*E*E. That’s a $49 value for nothing.

Disclaimer: I am a pilot and not a tax lawyer or accountant and generally not very good with numbers, therefore this post should not be construed as giving tax advice or legal advice. If you have any questions concerning your taxes or the validity of my statements here, you should contact your tax preparer. EZPerDiem is a source I use for my taxes and my Per Diem calculations that I wanted to share. You use it at your own risk.

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