ABOUT FLIGHTAX

www.flightax.com

220 West Jackson Street P.O. Box 139 Cicero IN, 46034

phone 317.984.5812 fax 800.951.8879

FLIGHTAX has been in business since 1990. Our team of CPA’s and Enrolled Agents provide you with the most comprehensive tax consultation and preparation possible. We are members of the National Association of Tax Preparers, Indiana CPA Society, and the National Association of Enrolled Agents.

Last year, we prepared tax returns for over 4,500 clients in all 50 states and abroad at 56 different airlines. The key to our success is our knowledge of the airline industry, expertise in tax code and how the two affect you. The best way to keep up to date on the changes in the airline industry is to literally be a part of that industry.

© 2014 FLIGHTAX 021314

A Must Read forEVERY NEW HIRE!

FLIGHT ATTENDANT TAX GUIDE

My fellow Flight Attendants,

By now, you probably realize that this isn’t just a job, it is a life style! This brings with it a totally different set of tax parameters. Most tax preparers are not educated or familiar with the airline industry. Thus, in 1990, I started Flightax, Income Tax Returns for Flight Attendants.

This guide has been designed to help you understand the deductions that you have a legal right to take and to educate you on some of the do’s and don’ts of the industry and the IRS. This guide will address several situations that will affect you directly – State Residency/Tax issues, List of approved deductions, Per Diem Explanation and IRS Codes, Deduction Substantiation and common myths to name a few.

If you would like more detailed information, please check out my website at www.flightax.com. I have detailed information specifically for all major airlines!

Please don’t hesitate to contact me personally at 317.984.5812 or bmorrow@flightax.com if you have any questions about your flying deductions and/or your state of residency.

Brett C. Morrow

TABLE

OF

CO

NTE

NTS

3 Uniform Items

4 Uniform Maintenance

5 Transportation Expenses

6 Computer & Related Expenses

7 Travel & Safety Items

9 Communication Expenses

10 Temporary Duty/SPA

10 Union Expenses

10 Training

11 New Hire Deductions

12 Job Search

12 Commuter Pad Moving Expenses

13 Moving Expenses

13 Per Diem Deduction

14 Supporting Documentation

15 What’s Not Deductible

16 State of Residency

17 Itemized List of Deductions

My fellow Flight Attendants,

By now, you probably realize that this isn’t just a job, it is a life style! This brings with it a totally different set of tax parameters. Most tax preparers are not educated or familiar with the airline industry. Thus, in 1990, I started Flightax, Income Tax Returns for Flight Attendants.

This guide has been designed to help you understand the deductions that you have a legal right to take and to educate you on some of the do’s and don’ts of the industry and the IRS. This guide will address several situations that will affect you directly – State Residency/Tax issues, List of approved deductions, Per Diem Explanation and IRS Codes, Deduction Substantiation and common myths to name a few.

If you would like more detailed information, please check out my website at www.flightax.com. I have detailed information specifically for all major airlines!

Please don’t hesitate to contact me personally at 317.984.5812 or bmorrow@flightax.com if you have any questions about your flying deductions and/or your state of residency.

Brett C. Morrow

TABLE

OF

CO

NTE

NTS

3 Uniform Items

4 Uniform Maintenance

5 Transportation Expenses

6 Computer & Related Expenses

7 Travel & Safety Items

9 Communication Expenses

10 Temporary Duty/SPA

10 Union Expenses

10 Training

11 New Hire Deductions

12 Job Search

12 Commuter Pad Moving Expenses

13 Moving Expenses

13 Per Diem Deduction

14 Supporting Documentation

15 What’s Not Deductible

16 State of Residency

17 Itemized List of Deductions

F LIG

HTA

X

F LIG

HTA

X

If your uniform requires alterations, this amount is deductible. Remember, if you are reimbursed for this expense or eligible to be reimbursed and do not do so, this amount will not be allowed by the IRS. The IRS denies us the deduction if we had the opportunity to be reimbursed but did not do so. And yes… Receipts are required to substantiate this deduction.

If you live in one of the larger cities, and don’t have a washer and dryer, you must go to a Laundromat. Whatever you pay for cleaning your uniform items is deductible.

If you have a washer and dryer at home, technically a percentage of your water bill, electric bill and depreciation on your washer and dryer are deductible. For simplicity, estimate the monthly cost of your home laundering on your uniform items. It is common for us to see $3 to $4 per week or $12 to $16 per month. Let us know what your estimated expense is per month.

Monthly amounts are generally no more than $20 to $30 per month; keep all receipts. If possible, make sure your dry cleaner lists the item cleaned as a uniform garment. It is always a good idea to have two accounts set up with the dry cleaner – one for your personal clothes and the other for your Uniform!

3 4

Chances are, when you were hired, your original uniform and luggage purchase amount was paid for by the company and then you pay a monthly amount through payroll deduction. There may be additional uniform items that you purchased 2nd hand from the company or directly from the uniform shop. Any of these uniform items are deductible on your Federal Tax Return.

The total amount of your deduction will be the combination of your payroll deduction and items purchased out of pocket. You do not get a deduction for any uniform items that were provided by the company through replacement programs. Any items you receive through this program are NOT deductible. You did not pay for these items, thus no deduction is recognized. The IRS requires receipts for the purchase/maintenance of uniform related items, regardless of the amount you spend. If you purchase your items through the company and have a monthly payroll deduction, the amount on your last pay check stub will be your receipt (we suggest purchasing them this way so you will always have a record).

If you were reimbursed for, or offered reimbursement and failed to request it, the IRS will not allow a deduction. Do not include any expenses for which you were reimbursed, or any expenses for which you could have been reimbursed, but were not.

• Payroll Deducted This can be found on your last pay stub.

• Out of Pocket The IRS requires receipts for all uniform items purchased out of pocket regardless of the amount; $75 receipt rule does not apply as this is not considered a “Travel Related Deduction.”

Must have a company insignia or logo to qualify as a deduction; otherwise, it is considered “street clothes” and not deductible. This can be more of an issue for Corporate airline employee’s where a specific “uniform” is not issued. If you have any questions, please contact us.

You have two types of shoes you wear – Uniform & In-Flight’s; the IRS requires that shoes be purchased from a Uniform Store to qualify for a deduction. What does this mean – if you go to Macy’s and purchase a pair of shoes for work, you cannot take the cost as a deduction. If you purchase your shoes from the ASU or other specific Uniform Store – then you can take this amount as a deduction. Remember – if you go to the ASU, have the item payroll deducted if that is possible with your airline!

If you wear “support” hose, the cost is added to your accumulative medical expense for Medical Deduction under Section O, page 4 (we will make this calculation). As you know, most airplanes’ fly at a 3% incline – so if you are flying from IAD to CDG, you are spending about 8.5 hours walking up and down a hill. Thus, may find it necessary to purchase some type of “support” hosiery. If you do not have any other medical expenses, this probably will not benefit you. The IRS requires a medical deduction to be over 10% of your Adjusted Gross Income. If you earned 50K you would have to have at least $5,000 in out of pocket medical expenses to start the deduction. Some states have a lower floor – for example, NJ has a 2% medical floor – which is much more advantageous than the federal. Bottom line, give us the amount and we will determine the deduction!

UNIFORM ITEMS UNIFORM MAINTENANCE*

*R

EMIN

DER

**

www.flightax.com 317.984.5812

• Uniform Clothing

• Uniform Shoes

• Support Hose (medical deduction)

• Alterations

• Laundry

• Home Laundry

• Dry Cleaning

F LIG

HTA

X

F LIG

HTA

X

If your uniform requires alterations, this amount is deductible. Remember, if you are reimbursed for this expense or eligible to be reimbursed and do not do so, this amount will not be allowed by the IRS. The IRS denies us the deduction if we had the opportunity to be reimbursed but did not do so. And yes… Receipts are required to substantiate this deduction.

If you live in one of the larger cities, and don’t have a washer and dryer, you must go to a Laundromat. Whatever you pay for cleaning your uniform items is deductible.

If you have a washer and dryer at home, technically a percentage of your water bill, electric bill and depreciation on your washer and dryer are deductible. For simplicity, estimate the monthly cost of your home laundering on your uniform items. It is common for us to see $3 to $4 per week or $12 to $16 per month. Let us know what your estimated expense is per month.

Monthly amounts are generally no more than $20 to $30 per month; keep all receipts. If possible, make sure your dry cleaner lists the item cleaned as a uniform garment. It is always a good idea to have two accounts set up with the dry cleaner – one for your personal clothes and the other for your Uniform!

3 4

Chances are, when you were hired, your original uniform and luggage purchase amount was paid for by the company and then you pay a monthly amount through payroll deduction. There may be additional uniform items that you purchased 2nd hand from the company or directly from the uniform shop. Any of these uniform items are deductible on your Federal Tax Return.

The total amount of your deduction will be the combination of your payroll deduction and items purchased out of pocket. You do not get a deduction for any uniform items that were provided by the company through replacement programs. Any items you receive through this program are NOT deductible. You did not pay for these items, thus no deduction is recognized. The IRS requires receipts for the purchase/maintenance of uniform related items, regardless of the amount you spend. If you purchase your items through the company and have a monthly payroll deduction, the amount on your last pay check stub will be your receipt (we suggest purchasing them this way so you will always have a record).

If you were reimbursed for, or offered reimbursement and failed to request it, the IRS will not allow a deduction. Do not include any expenses for which you were reimbursed, or any expenses for which you could have been reimbursed, but were not.

• Payroll Deducted This can be found on your last pay stub.

• Out of Pocket The IRS requires receipts for all uniform items purchased out of pocket regardless of the amount; $75 receipt rule does not apply as this is not considered a “Travel Related Deduction.”

Must have a company insignia or logo to qualify as a deduction; otherwise, it is considered “street clothes” and not deductible. This can be more of an issue for Corporate airline employee’s where a specific “uniform” is not issued. If you have any questions, please contact us.

You have two types of shoes you wear – Uniform & In-Flight’s; the IRS requires that shoes be purchased from a Uniform Store to qualify for a deduction. What does this mean – if you go to Macy’s and purchase a pair of shoes for work, you cannot take the cost as a deduction. If you purchase your shoes from the ASU or other specific Uniform Store – then you can take this amount as a deduction. Remember – if you go to the ASU, have the item payroll deducted if that is possible with your airline!

If you wear “support” hose, the cost is added to your accumulative medical expense for Medical Deduction under Section O, page 4 (we will make this calculation). As you know, most airplanes’ fly at a 3% incline – so if you are flying from IAD to CDG, you are spending about 8.5 hours walking up and down a hill. Thus, may find it necessary to purchase some type of “support” hosiery. If you do not have any other medical expenses, this probably will not benefit you. The IRS requires a medical deduction to be over 10% of your Adjusted Gross Income. If you earned 50K you would have to have at least $5,000 in out of pocket medical expenses to start the deduction. Some states have a lower floor – for example, NJ has a 2% medical floor – which is much more advantageous than the federal. Bottom line, give us the amount and we will determine the deduction!

UNIFORM ITEMS UNIFORM MAINTENANCE

**

REM

IND

ER*

*

www.flightax.com 317.984.5812

• Uniform Clothing

• Uniform Shoes

• Support Hose (medical deduction)

• Alterations

• Laundry

• Home Laundry

• Dry Cleaning

F LIG

HTA

X

F LIG

HTA

X

Satellite/Co-Terminal Transportation

Satellite/Co-Terminal only applies to bases that cover more than one airport. (e.g. NYC covers LGA, JFK, and EWR) Transportation from home/commuter pad to your base airport (company mailbox location) is not deductible; however, if you travel to a point beyond your base, then this portion of transportation is deductible. Below are two examples, if you have any questions, please give us a call to further explain this deduction.

Airport Parking

If you pay for parking at the airport – a “portion” of this expense is deductible as long as it is not reimbursed or offered for reimbursement by the airline. To explain further, the IRS deems normal parking for a 9-5 job not to be deductible – every American is required to get to and from work and park with no allowed deduction. When it goes “above and beyond” we have grounds for a deduction. A business person going on a trip for 48 hours at the airport would get a deduction for their parking. The airport is your office – no deduction but you are on a “business” trip – deduction. To pacify the IRS and generate a partial deduction for you, we take 2/3’s of the expense since technically the first 1/3rd, or 8 hours, is not deductible. If you spend $30 on parking – your deduction would be $20 – $10 being disallowed for “normal” commuting expense. This deduction can be for parking at your base or parking at your home airport and then commuting to base.

Your mailbox is at LGA but your trip is out of JFK, the transportation from LGA to JFK and back is deductible. This is usually a recognizable expense for commuters who fly into and out of one airport where their mailbox is and are required to fly a trip out of a different airport.

You live in Manhattan and have a flight out of JFK and your mailbox is at LGA, no portion of your trip is deductible unless you go to LGA first then only the portion from LGA to JFK is deductible not the full trip. (Manhattan is between the two airports… you must travel to a point beyond your mailbox to qualify!)

TRANSPORTATION EXPENSESReserve Emergency Cab Fares

If you are on “Reserve” status, you are required to arrive at the airport within 2hrs of call to duty. You can deduct the cost of cab fares to meet this requirement when called. This is also true if you are called out with less time notice to make a trip. If you can get to the airport faster – you get the trip – generating income to you and tax revenue to the IRS – if you can make money by it, the IRS will give you the deduction.

Printer/Software

The IRS does not allow a deduction for purchasing a Home Computer/Laptop /Tablet. Even though they are an asset, the airline does not require employees to have them as a condition of employment.

The IRS has issued a 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 their computer. By law, a computer must be used for the convenience of the employer and required as a condition of employment.” 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. All airlines provide computers for their employees to use at operations and the airport. Although they are a huge asset to our jobs, the airline does not require that we have a personal computer or laptop. Thus, they are not deductible. UGH!

Although we can’t take the computer itself, we can claim a deduction for the cost of toner and paper supplies for the printer used when printing your flight schedules, bid sheets or other business related documents.

If you purchase software to assist you in bidding and trip trading – this software is deductible.

COMPUTER & RELATED EXPENSES

5 6www.flightax.com 317.984.5812

• Example

• Non-Deductible Example

• Printer Ink/Toner/Paper

• Bidding and Trip Trading Software

F LIG

HTA

X

F LIG

HTA

X

Satellite/Co-Terminal Transportation

Satellite/Co-Terminal only applies to bases that cover more than one airport. (e.g. NYC covers LGA, JFK, and EWR) Transportation from home/commuter pad to your base airport (company mailbox location) is not deductible; however, if you travel to a point beyond your base, then this portion of transportation is deductible. Below are two examples, if you have any questions, please give us a call to further explain this deduction.

Airport Parking

If you pay for parking at the airport – a “portion” of this expense is deductible as long as it is not reimbursed or offered for reimbursement by the airline. To explain further, the IRS deems normal parking for a 9-5 job not to be deductible – every American is required to get to and from work and park with no allowed deduction. When it goes “above and beyond” we have grounds for a deduction. A business person going on a trip for 48 hours at the airport would get a deduction for their parking. The airport is your office – no deduction but you are on a “business” trip – deduction. To pacify the IRS and generate a partial deduction for you, we take 2/3’s of the expense since technically the first 1/3rd, or 8 hours, is not deductible. If you spend $30 on parking – your deduction would be $20 – $10 being disallowed for “normal” commuting expense. This deduction can be for parking at your base or parking at your home airport and then commuting to base.

Your mailbox is at LGA but your trip is out of JFK, the transportation from LGA to JFK and back is deductible. This is usually a recognizable expense for commuters who fly into and out of one airport where their mailbox is and are required to fly a trip out of a different airport.

You live in Manhattan and have a flight out of JFK and your mailbox is at LGA, no portion of your trip is deductible unless you go to LGA first then only the portion from LGA to JFK is deductible not the full trip. (Manhattan is between the two airports… you must travel to a point beyond your mailbox to qualify!)

TRANSPORTATION EXPENSESReserve Emergency Cab Fares

If you are on “Reserve” status, you are required to arrive at the airport within 2hrs of call to duty. You can deduct the cost of cab fares to meet this requirement when called. This is also true if you are called out with less time notice to make a trip. If you can get to the airport faster – you get the trip – generating income to you and tax revenue to the IRS – if you can make money by it, the IRS will give you the deduction.

Printer/Software

The IRS does not allow a deduction for purchasing a Home Computer/Laptop /Tablet. Even though they are an asset, the airline does not require employees to have them as a condition of employment.

The IRS has issued a 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 their computer. By law, a computer must be used for the convenience of the employer and required as a condition of employment.” 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. All airlines provide computers for their employees to use at operations and the airport. Although they are a huge asset to our jobs, the airline does not require that we have a personal computer or laptop. Thus, they are not deductible. UGH!

Although we can’t take the computer itself, we can claim a deduction for the cost of toner and paper supplies for the printer used when printing your flight schedules, bid sheets or other business related documents.

If you purchase software to assist you in bidding and trip trading – this software is deductible.

COMPUTER & RELATED EXPENSES

5 6www.flightax.com 317.984.5812

• Example

• Non-Deductible Example

• Printer Ink/Toner/Paper

• Bidding and Trip Trading Software

F LIG

HTA

X

F LIG

HTA

X

Internet/Data

• You may deduct the cost of using a third party scheduling service to obtain flight schedules. (e.g. Flightline, FLICA, etc.)

• Home Internet Fees including DSL, Cable, Aircard, VoIP, Skype are also deductible based on the percentage of business usage – provide annual cost (do not include the part of your bill covering television or telephone if a bundled package). Be sure to retain your monthly statements.

• Hotel Internet Access Fees while on layovers are deductible for business usage.

Tips to Hotel Van Drivers

When you are traveling on your layover and take the limo from the airport to your assigned hotel your tip to the driver is deductible. Generally tips are $1 each way or you “buddy buck”. Be sure to record this in your logbook!

Tips to a Hotel Maid

Are not deductible. This amount is included in the daily incidental per diem rate. This amount will be calculated automatically from your flight schedules.

ATM/Check Cashing Fees (While on layovers)

Because your job requires you to be away from home, you can deduct the fees you pay for using your ATM card or fees incurred to cash a check while traveling on layovers. Keep receipts and/or bank statements to support this deduction.

Safety and Professional Items

All items listed on the next page are deductible for the traveling crewmember as long as you maintain receipts and/or logbook entries per the $75 rule.

COMPUTER & RELATED EXPENSES CONT.

TRAVEL & SAFETY ITEMS

• Luggage Items• Garment Bag• Luggage Tags• Name Tags• Wings• Airline Access Keys• Personal Organizer• Logbook• Galley Supplies• Flashlight• Batteries• Portable Alarm Clock• Portable Curling Iron• Portable Hair Dryer• Portable Iron• ID Replacement• Watch Battery/Repair Expenses• International Voltage Converter• International Currency Converter• Manual Replacement• Update and Revision Services• Company Business Cards• Foreign Visa Expense• Passport Fee• Passport Photo Expense• Professional Publications• Bid Service Fees• Trading Service Fees• 2nd Language Education Expense• Drug Testing Fees

**

REM

IND

ER —

$75 R

ULE

(se

e p

age 1

4) *

*Note: If you pay a service to trade your trips or rearrange your schedule, these fees may be deductible. In order for you to deduct this expense, you must pick up trips of higher time or end up with a line of higher time or greater paying trips. If you trade from domestic to international, this would qualify since international pays more per hour than domestic. If you trade from an aisle position to a galley position at some airlines, this also qualifies since this position has a higher per hour pay. If you drop your trips and don’t fly a full schedule, your trading fees are not deductible.

7 8www.flightax.com 317.984.5812

F LIG

HTA

X

F LIG

HTA

X

Internet/Data

• You may deduct the cost of using a third party scheduling service to obtain flight schedules. (e.g. Flightline, FLICA, etc.)

• Home Internet Fees including DSL, Cable, Aircard, VoIP, Skype are also deductible based on the percentage of business usage – provide annual cost (do not include the part of your bill covering television or telephone if a bundled package). Be sure to retain your monthly statements.

• Hotel Internet Access Fees while on layovers are deductible for business usage.

Tips to Hotel Van Drivers

When you are traveling on your layover and take the limo from the airport to your assigned hotel your tip to the driver is deductible. Generally tips are $1 each way or you “buddy buck”. Be sure to record this in your logbook!

Tips to a Hotel Maid

Are not deductible. This amount is included in the daily incidental per diem rate. This amount will be calculated automatically from your flight schedules.

ATM/Check Cashing Fees (While on layovers)

Because your job requires you to be away from home, you can deduct the fees you pay for using your ATM card or fees incurred to cash a check while traveling on layovers. Keep receipts and/or bank statements to support this deduction.

Safety and Professional Items

All items listed on the next page are deductible for the traveling crewmember as long as you maintain receipts and/or logbook entries per the $75 rule.

COMPUTER & RELATED EXPENSES CONT.

TRAVEL & SAFETY ITEMS

• Luggage Items• Garment Bag• Luggage Tags• Name Tags• Wings• Airline Access Keys• Personal Organizer• Logbook• Galley Supplies• Flashlight• Batteries• Portable Alarm Clock• Portable Curling Iron• Portable Hair Dryer• Portable Iron• ID Replacement• Watch Battery/Repair Expenses• International Voltage Converter• International Currency Converter• Manual Replacement• Update and Revision Services• Company Business Cards• Foreign Visa Expense• Passport Fee• Passport Photo Expense• Professional Publications• Bid Service Fees• Trading Service Fees• 2nd Language Education Expense• Drug Testing Fees

**

REM

IND

ER —

$75 R

ULE

(se

e p

age 1

4) *

*

Note: If you pay a service to trade your trips or rearrange your schedule, these fees may be deductible. In order for you to deduct this expense, you must pick up trips of higher time or end up with a line of higher time or greater paying trips. If you trade from domestic to international, this would qualify since international pays more per hour than domestic. If you trade from an aisle position to a galley position at some airlines, this also qualifies since this position has a higher per hour pay. If you drop your trips and don’t fly a full schedule, your trading fees are not deductible.

7 8www.flightax.com 317.984.5812

F LIG

HTA

X

F LIG

HTA

X

Home phone or basic home phone service is not deductible. The IRS believes that the basic landline service is an expense that most Americans have regardless of their profession. Cell phones, in time, will probably be included in this category. Many of us don’t even have a land line anymore and use our cell phone as our exclusive contact number.

Because your job requires you to be directly accessible to the company, we have the grounds for a deduction. If you are on reserve, this is obvious, but if you are not on reserve, you must also be available for contact by or to contact crew scheduling for non-routine situations, cancellations and mechanicals. You are also using your cell phone to call your supervisor, union or fellow crew members.

Your base rate (including data plans) is what is used as the amount - be sure to include taxes and fees. From this base, you can take a deduction based on the percentage of business usage. As a general rule, very few deductions, which can also have a personal use, pass IRS scrutiny at 100% business. Most of our clients tell us the business use percentage is between 40% and 60%.

COMMUNICATION EXPENSES

Cell Phone - Remember

• You cannot deduct cell phones purchased for family members or friends. If your plan covers more than one phone, make sure to subtract the added cost of the additional phones.

• You cannot deduct monthly fees for phone usage by anyone other than yourself. If you have a family shared plan, you can only claim fees related to your phone.

• Percent Airline Business Usage per Month – you need to identify how much you use your cell phone to conduct business with crew schedule, your supervisor, union or fellow crewmembers and /or to contact family while away on layover.

• Keep your monthly cell phone statements to support your deduction.

Calling Cards

Cards billed directly to your home are deductible as well as International Prepaid Cards if you fly internationally for any type of business usage.

The IRS defines Temporary Duty as any assignment that has an expected completion date of less than one year. As a new hire you may be assigned to cover a different base for a period of time. If your assignment is greater than one year, you do not qualify for this deduction.

You may deduct Union Dues, initiation fees and any union publication expenses.

You have training requirements every year for your job. Because of this, you may be able to receive a per diem deduction based on the following:

• Types of TDY/SPA include new service/aircraft launch, training, recruitment or temporary management positions.

• You receive a deduction for your meals, housing and transportation cost while at the location.

• You also receive a deduction for your commuting expenses between your temporary location and your prior base – yes, this is the one time that commuting costs are deductible.

• We can deduct the actual amount of union dues paid during the year; usually found on the last pay stub. You may have to add this amount from each monthly pay stub if the final stub does not include a “Year to Date” total.

• Union Representatives have an entire different set of deductions – for a Union Rep Worksheet, please go to our website www.flightax.com.

• Initial Training – as a new hire, you are eligible to receive a per diem for each day you are in training – this qualifies under the “temporary assignment” regulations.

• Recurrent/Upgrade Training – you must complete recurrent (annual) training to stay current in your job. Per Diem is allowed during Recurrent Training only when performed at a location other than your base. If you are based at ATL and attend two days of training – you are considered “at home” and no per diem deduction is allowed – even if you commute from another location and Atlanta is not your residence.

TEMPORARY DUTY/SPECIAL ASSIGNMENT

UNION EXPENSES

TRAINING

**You must be in training for two or more consecutive days to receive per diem.**

9 10www.flightax.com 317.984.5812

F LIG

HTA

X

F LIG

HTA

X

Home phone or basic home phone service is not deductible. The IRS believes that the basic landline service is an expense that most Americans have regardless of their profession. Cell phones, in time, will probably be included in this category. Many of us don’t even have a land line anymore and use our cell phone as our exclusive contact number.

Because your job requires you to be directly accessible to the company, we have the grounds for a deduction. If you are on reserve, this is obvious, but if you are not on reserve, you must also be available for contact by or to contact crew scheduling for non-routine situations, cancellations and mechanicals. You are also using your cell phone to call your supervisor, union or fellow crew members.

Your base rate (including data plans) is what is used as the amount - be sure to include taxes and fees. From this base, you can take a deduction based on the percentage of business usage. As a general rule, very few deductions, which can also have a personal use, pass IRS scrutiny at 100% business. Most of our clients tell us the business use percentage is between 40% and 60%.

COMMUNICATION EXPENSES

Cell Phone - Remember

• You cannot deduct cell phones purchased for family members or friends. If your plan covers more than one phone, make sure to subtract the added cost of the additional phones.

• You cannot deduct monthly fees for phone usage by anyone other than yourself. If you have a family shared plan, you can only claim fees related to your phone.

• Percent Airline Business Usage per Month – you need to identify how much you use your cell phone to conduct business with crew schedule, your supervisor, union or fellow crewmembers and /or to contact family while away on layover.

• Keep your monthly cell phone statements to support your deduction.

Calling Cards

Cards billed directly to your home are deductible as well as International Prepaid Cards if you fly internationally for any type of business usage.

The IRS defines Temporary Duty as any assignment that has an expected completion date of less than one year. As a new hire you may be assigned to cover a different base for a period of time. If your assignment is greater than one year, you do not qualify for this deduction.

You may deduct Union Dues, initiation fees and any union publication expenses.

You have training requirements every year for your job. Because of this, you may be able to receive a per diem deduction based on the following:

• Types of TDY/SPA include new service/aircraft launch, training, recruitment or temporary management positions.

• You receive a deduction for your meals, housing and transportation cost while at the location.

• You also receive a deduction for your commuting expenses between your temporary location and your prior base – yes, this is the one time that commuting costs are deductible.

• We can deduct the actual amount of union dues paid during the year; usually found on the last pay stub. You may have to add this amount from each monthly pay stub if the final stub does not include a “Year to Date” total.

• Union Representatives have an entire different set of deductions – for a Union Rep Worksheet, please go to our website www.flightax.com.

• Initial Training – as a new hire, you are eligible to receive a per diem for each day you are in training – this qualifies under the “temporary assignment” regulations.

• Recurrent/Upgrade Training – you must complete recurrent (annual) training to stay current in your job. Per Diem is allowed during Recurrent Training only when performed at a location other than your base. If you are based at ATL and attend two days of training – you are considered “at home” and no per diem deduction is allowed – even if you commute from another location and Atlanta is not your residence.

TEMPORARY DUTY/SPECIAL ASSIGNMENT

UNION EXPENSES

TRAINING

**You must be in training for two or more consecutive days to receive per diem.**

9 10www.flightax.com 317.984.5812

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First of all – Welcome to the industry. By now, you probably realize that this isn’t just a job, it is a life style! Distance is no longer an issue for you allowing you to stay in touch with family and friends anywhere in the world.

This life style brings with it a totally different set of tax parameters. You are going to have several out of pocket expenses your first year, as I’m sure you are aware!

You have, or will, probably purchase most of the items under the Itemized List in this guide. These will be a great deduction for you on your first year’s return. Just keep in mind, however, if you started flying in the middle or towards the end of the year, even with these good deductions you may not have enough to itemize your return and you would be better off taking the standard deduction.

Remember all those days in training? The early morning rise and the late night drills? Well now, at tax time, you can get a per diem deduction for each one of these days! The IRS will allow you a deduction based on your city of training. If you spent 8 weeks in training in Dallas during 2013 – you would have an allowable deduction of $3976. (This amount is deductible at 50% since it is a meal deduction and not subject to DOT limitations like flying).

As a New Hire you will have several deductions your first year; moving expense, training per diem, uniform costs etc. Use this guide to educate yourself on what have been proven to be legitimate deductions recognized by the IRS and to be aware of those expenses which are not allowed by law.

You will hear several rumors out there about what some Flight Attendants are claiming and what they are not. Just remember, on a tax return, we don’t tell the IRS what we are taking – they just see numbers. It isn’t until an Audit that we provide a breakdown and justification for these numbers. The old saying, “if it sounds too good to be true, it probably is” - isn’t usually correct when it comes to airline deductions. (except for the per diem deduction – our one tax loop-hole left!)

Best of luck to you in your new life style! If you have any questions on your specific tax situation or residency issue, please don’t hesitate to give us a call!

NEW HIRE DEDUCTIONSThe cost of finding a job within the airline industry is deductible. Just remember the job search expenses of finding another position WITHIN the same industry are deductible; the job search expenses of looking outside of the airline industry are NOT deductible – go figure!

If you transfer bases during the year, but did not move your primary home, these expenses are considered a professional deduction versus a moving deduction.

A flight attendant updates his/her resume or fly’s to an interview, these expenses are deductible if he/she is interviewing within the airline industry.

Expenses for applying to the airline are not deductible unless you worked for an airline before!

If a flight attendant has to fly to an interview for a nursing position and spend the night, these expenses are NOT deductible because they are not within the industry.

Clothing purchased for the interviewing process is NOT deductible. Although this is an additional expense to you, it is not a recognized deduction by the IRS. Only clothing that has a company insignia or logo, such as a uniform, is deductible.

If a flight attendant obtains a license to become a Pilot, these job search expenses are not deductible because the job has to be a lateral move within the airline industry.

• Expenses are only deductible if you transferred bases.

• Shipping expenses include boxes, packing material, etc.

• Lodging expenses are only deductible while in transit to new a location; no multiple night stays along the way. Hotel expenses at your destination are not deductible.

• A moving deduction is taken as a professional expense if you transferred bases but did not change your Tax Home – basically a move of your crash pad items and possibly vehicle.

JOB SEARCH

COMMUTER PAD MOVING EXPENSES

11 12www.flightax.com 317.984.5812

• Example

• New Hire

• Non-Deductible Example

• Non-Deductible Example

• Non-Deductible Example

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First of all – Welcome to the industry. By now, you probably realize that this isn’t just a job, it is a life style! Distance is no longer an issue for you allowing you to stay in touch with family and friends anywhere in the world.

This life style brings with it a totally different set of tax parameters. You are going to have several out of pocket expenses your first year, as I’m sure you are aware!

You have, or will, probably purchase most of the items under the Itemized List in this guide. These will be a great deduction for you on your first year’s return. Just keep in mind, however, if you started flying in the middle or towards the end of the year, even with these good deductions you may not have enough to itemize your return and you would be better off taking the standard deduction.

Remember all those days in training? The early morning rise and the late night drills? Well now, at tax time, you can get a per diem deduction for each one of these days! The IRS will allow you a deduction based on your city of training. If you spent 8 weeks in training in Dallas during 2013 – you would have an allowable deduction of $3976. (This amount is deductible at 50% since it is a meal deduction and not subject to DOT limitations like flying).

As a New Hire you will have several deductions your first year; moving expense, training per diem, uniform costs etc. Use this guide to educate yourself on what have been proven to be legitimate deductions recognized by the IRS and to be aware of those expenses which are not allowed by law.

You will hear several rumors out there about what some Flight Attendants are claiming and what they are not. Just remember, on a tax return, we don’t tell the IRS what we are taking – they just see numbers. It isn’t until an Audit that we provide a breakdown and justification for these numbers. The old saying, “if it sounds too good to be true, it probably is” - isn’t usually correct when it comes to airline deductions. (except for the per diem deduction – our one tax loop-hole left!)

Best of luck to you in your new life style! If you have any questions on your specific tax situation or residency issue, please don’t hesitate to give us a call!

NEW HIRE DEDUCTIONSThe cost of finding a job within the airline industry is deductible. Just remember the job search expenses of finding another position WITHIN the same industry are deductible; the job search expenses of looking outside of the airline industry are NOT deductible – go figure!

If you transfer bases during the year, but did not move your primary home, these expenses are considered a professional deduction versus a moving deduction.

A flight attendant updates his/her resume or fly’s to an interview, these expenses are deductible if he/she is interviewing within the airline industry.

Expenses for applying to the airline are not deductible unless you worked for an airline before!

If a flight attendant has to fly to an interview for a nursing position and spend the night, these expenses are NOT deductible because they are not within the industry.

Clothing purchased for the interviewing process is NOT deductible. Although this is an additional expense to you, it is not a recognized deduction by the IRS. Only clothing that has a company insignia or logo, such as a uniform, is deductible.

If a flight attendant obtains a license to become a Pilot, these job search expenses are not deductible because the job has to be a lateral move within the airline industry.

• Expenses are only deductible if you transferred bases.

• Shipping expenses include boxes, packing material, etc.

• Lodging expenses are only deductible while in transit to new a location; no multiple night stays along the way. Hotel expenses at your destination are not deductible.

• A moving deduction is taken as a professional expense if you transferred bases but did not change your Tax Home – basically a move of your crash pad items and possibly vehicle.

JOB SEARCH

COMMUTER PAD MOVING EXPENSES

11 12www.flightax.com 317.984.5812

• Example

• New Hire

• Non-Deductible Example

• Non-Deductible Example

• Non-Deductible Example

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If you moved to your new base with the airline, the cost of this move is deductible. If you didn’t drive, your airfare was probably free. However, if you paid to have anything shipped; make sure to claim these expenses.

If you drove your car to base, we can deduct the mileage for your drive to cover your gas expense, we can also deduct the cost of a hotel along the way of your drive to base.

We cannot take any temporary housing expenses at your new base. We know you had a large expense when you came to base – hotel, temporary living expenses etc., however, these amounts are not deductible in the eyes of the IRS.

Your Per Diem deduction is the greatest tax advantage you have from being a Flight Attendant. The Government allows you a standard deduction for each city you fly to and for each day or partial day you are there. No need to keep your receipts for your meals, the IRS allows you to use this rate with no receipts required.

Airline crewmembers are paid an hourly amount by their airline to reimburse them for meals and incidental expenses incurred while traveling on business. As a way to simplify the documentation burden associated with keeping track of a Flight Attendant’s meal expenses, the IRS allows use of the per diem method of documenting such expenses (IRS Rev Proc 2006-41). These rates are established by the GAO and referred to as CONUS rates for domestic locations and OCONUS for international.

Because we are members of the transportation industry, airline crew members have the choice of using the “actual city” or “average city” method of calculating their meal deduction. Using the “actual city” method, we determine the number of days and partial days the crewmember was away overnight in each layover city, using the client’s flight schedules and calendar. Almost every city has an assigned meal and incidental (MIE) expense allowance in the CONUS (continental U.S.) tables established in 41 C.F.R. ch 301 or the OCONUS (outside continental U.S.) tables established by the Dept. of Defense. We then multiply the number of layover days by the established rate for each city and date to obtain the amount of MIE expenses deemed substantiated by the taxpayer.

MOVING EXPENSES

PER DIEM DEDUCTION

This total is reported on Form 2106, line 5, column B. On this same form on line 7, column B, we enter the amount of reimbursements received by the employee, which were NOT reported in Box 1 of their W2. Most airlines provide this amount in Box 12 of the employee’s W2 under Code L or on the employee pay stub.

Travel Related Expenses

The IRS does not require a receipt for a travel related expense that is under $75.00. Thank you George M. Cohan (He wrote “Yankee Doodle Dandy”) for this tax ruling. However, they do require the taxpayer to maintain a logbook of all expenses less than $75… and yes, keep your receipts for all purchases of $75 or more. http://pegasus.cc.ucf.edu/~bandy/cohan.htm

Logbook

You should record the date of expense, item purchased, location or store name, three letter city code identifying your layover and the amount of the purchase.

Items over $75.00 Require Receipts

If you purchase a new rollerboard for $169.00 – you need to have a receipt to claim the deduction. It is always a good idea to put all of your purchases on a credit card. Even though the IRS will NOT accept a credit card statement as the receipt – you will always have record of the store and date should you need to request a copy of the receipt!

SUPPORTING DOCUMENTATION

**Without proper supporting documentation, the IRS has the right to disallow a deduction in

the event of an audit.**

13 14www.flightax.com 317.984.5812

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X

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If you moved to your new base with the airline, the cost of this move is deductible. If you didn’t drive, your airfare was probably free. However, if you paid to have anything shipped; make sure to claim these expenses.

If you drove your car to base, we can deduct the mileage for your drive to cover your gas expense, we can also deduct the cost of a hotel along the way of your drive to base.

We cannot take any temporary housing expenses at your new base. We know you had a large expense when you came to base – hotel, temporary living expenses etc., however, these amounts are not deductible in the eyes of the IRS.

Your Per Diem deduction is the greatest tax advantage you have from being a Flight Attendant. The Government allows you a standard deduction for each city you fly to and for each day or partial day you are there. No need to keep your receipts for your meals, the IRS allows you to use this rate with no receipts required.

Airline crewmembers are paid an hourly amount by their airline to reimburse them for meals and incidental expenses incurred while traveling on business. As a way to simplify the documentation burden associated with keeping track of a Flight Attendant’s meal expenses, the IRS allows use of the per diem method of documenting such expenses (IRS Rev Proc 2006-41). These rates are established by the GAO and referred to as CONUS rates for domestic locations and OCONUS for international.

Because we are members of the transportation industry, airline crew members have the choice of using the “actual city” or “average city” method of calculating their meal deduction. Using the “actual city” method, we determine the number of days and partial days the crewmember was away overnight in each layover city, using the client’s flight schedules and calendar. Almost every city has an assigned meal and incidental (MIE) expense allowance in the CONUS (continental U.S.) tables established in 41 C.F.R. ch 301 or the OCONUS (outside continental U.S.) tables established by the Dept. of Defense. We then multiply the number of layover days by the established rate for each city and date to obtain the amount of MIE expenses deemed substantiated by the taxpayer.

MOVING EXPENSES

PER DIEM DEDUCTION

This total is reported on Form 2106, line 5, column B. On this same form on line 7, column B, we enter the amount of reimbursements received by the employee, which were NOT reported in Box 1 of their W2. Most airlines provide this amount in Box 12 of the employee’s W2 under Code L or on the employee pay stub.

Travel Related Expenses

The IRS does not require a receipt for a travel related expense that is under $75.00. Thank you George M. Cohan (He wrote “Yankee Doodle Dandy”) for this tax ruling. However, they do require the taxpayer to maintain a logbook of all expenses less than $75… and yes, keep your receipts for all purchases of $75 or more. http://pegasus.cc.ucf.edu/~bandy/cohan.htm

Logbook

You should record the date of expense, item purchased, location or store name, three letter city code identifying your layover and the amount of the purchase.

Items over $75.00 Require Receipts

If you purchase a new rollerboard for $169.00 – you need to have a receipt to claim the deduction. It is always a good idea to put all of your purchases on a credit card. Even though the IRS will NOT accept a credit card statement as the receipt – you will always have record of the store and date should you need to request a copy of the receipt!

SUPPORTING DOCUMENTATION

**Without proper supporting documentation, the IRS has the right to disallow a deduction in

the event of an audit.**

13 14www.flightax.com 317.984.5812

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This is obviously not the case, thus, we, as flight crew, cannot take a deduction for the purchase of a computer or tablet.

However, we can take a deduction for certain related expenses. Paper – to print out bid sheets, parings, schedules etc. Also a percentage of your ink usage – again, for work related printed items.

Make-Up/Hair Care

Welcome to the 21st Century, where women wear make-up and men cut their hair on a regular basis, just not if they were flight attendants. That pretty much explains the IRS position. This is a personal expense not business related. Granted, your manual requires your hair to be a specific length, your lips to be red and your nails be groomed, however, this is still a personal expense in the eyes of the IRS.

Just where do you pay state tax? You live in Missouri, you are based in New York and you spend most of your time with your boyfriend who lives in Chicago… so where do you pay state tax?

An air crew employee is considered a transient, just like military personnel. Home sometimes is where the hotel pillow is! But for state residency purposes your home is where you consider your “abode”. Here are some of the questions you will want to ask yourself to determine what state you call home for tax and residency purposes:

• What state issues your driver’s license?

• Where am I registered to vote?

• Where do I own real estate?

• Where do I have a lease?

• Where are my family heirlooms?

• Where do I return after work?

• Where do I vacation from?

STATE OF RESIDENCY

16www.flightax.com

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If you have someone prepare your return who is not experienced in the airline industry, you can owe a substantial amount in back tax plus penalty and interest. In addition, the IRS will be watching from afar for a few years.

WHAT’S NOT DEDUCTIBLE

Commuting

It is estimated that around 70% of airline employees commute over 50 miles from their base airport. The ID-90’s, non-rev charges, tolls, mileage, hotels, crash pads… it can be thousands of dollars a year.

The IRS does not allow any type of deduction for commuting expense. If you wish to move from your home to your base, the IRS provides for a deduction of these expenses. However, they will not allow any type of deduction for sustaining two residences. If your base is closed and you are required to relocate – the IRS will give you a deduction for moving to this new location – but will not let you take commuting expenses.

If you commute, it is your decision to commute. The company doesn’t make you, the IRS doesn’t… it is your decision. Thus, these expenses are deemed to be personal and not business related – Not Deductible!

Computer

The official word: The IRS has issued a 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 their computer. By law, a computer must be used for the convenience of the employer and required as a condition of employment.”

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.

What does this mean? In basic language, the IRS says a computer is a condition of employment – which means you would be terminated if you didn’t own a computer and you must have one before you can be hired.

15 317.984.5812

F LIG

HTA

X

This is obviously not the case, thus, we, as flight crew, cannot take a deduction for the purchase of a computer or tablet.

However, we can take a deduction for certain related expenses. Paper – to print out bid sheets, parings, schedules etc. Also a percentage of your ink usage – again, for work related printed items.

Make-Up/Hair Care

Welcome to the 21st Century, where women wear make-up and men cut their hair on a regular basis, just not if they were flight attendants. That pretty much explains the IRS position. This is a personal expense not business related. Granted, your manual requires your hair to be a specific length, your lips to be red and your nails be groomed, however, this is still a personal expense in the eyes of the IRS.

Just where do you pay state tax? You live in Missouri, you are based in New York and you spend most of your time with your boyfriend who lives in Chicago… so where do you pay state tax?

An air crew employee is considered a transient, just like military personnel. Home sometimes is where the hotel pillow is! But for state residency purposes your home is where you consider your “abode”. Here are some of the questions you will want to ask yourself to determine what state you call home for tax and residency purposes:

• What state issues your driver’s license?

• Where am I registered to vote?

• Where do I own real estate?

• Where do I have a lease?

• Where are my family heirlooms?

• Where do I return after work?

• Where do I vacation from?

STATE OF RESIDENCY

16www.flightax.com

F LIG

HTA

X

If you have someone prepare your return who is not experienced in the airline industry, you can owe a substantial amount in back tax plus penalty and interest. In addition, the IRS will be watching from afar for a few years.

WHAT’S NOT DEDUCTIBLE

Commuting

It is estimated that around 70% of airline employees commute over 50 miles from their base airport. The ID-90’s, non-rev charges, tolls, mileage, hotels, crash pads… it can be thousands of dollars a year.

The IRS does not allow any type of deduction for commuting expense. If you wish to move from your home to your base, the IRS provides for a deduction of these expenses. However, they will not allow any type of deduction for sustaining two residences. If your base is closed and you are required to relocate – the IRS will give you a deduction for moving to this new location – but will not let you take commuting expenses.

If you commute, it is your decision to commute. The company doesn’t make you, the IRS doesn’t… it is your decision. Thus, these expenses are deemed to be personal and not business related – Not Deductible!

Computer

The official word: The IRS has issued a 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 their computer. By law, a computer must be used for the convenience of the employer and required as a condition of employment.”

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.

What does this mean? In basic language, the IRS says a computer is a condition of employment – which means you would be terminated if you didn’t own a computer and you must have one before you can be hired.

15 317.984.5812

F LIG

HTA

X

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X

Your answers to these specific questions will determine your legal state of residency. Different states have different rates and rules. GA will allow you to deduct your flying professional deductions where IN will not. However, we cannot just choose where to pay tax; this location is based on the answer to the questions on the previous page.

We would all like to claim residency in TX, FL, NV, NH, TN and any other state that does not have state tax. For some of you, this is a reality. But using your Ex’s friend’s address in Florida to avoid paying NY State and City tax will land you in major trouble with the law.

Keep in mind that with the sharing of information and technology, states are getting much smarter and tracking income and residency!

There is a federal ruling (Title 49, Section 40116 United States Code, (f) (C)) that will not allow any state to attach the earnings of an air crew employee unless over 50% of the flying is done within the state lines of that state. There are only very, very few situations where this can be proven by the state – CA is the main state where this is an issue with flying up and down the coast.

If you have questions on which address you should be providing to your company for state tax purposes, just give Flightax a call and we will help you determine the proper state for your residency.

STATE OF RESIDENCY CONT.Enter additional “out of pocket” uniform expenses below. Do not include items provided by the company through replacement programs. You need a receipt for each item purchased, regardless of the amount. The $75 rule does not apply as this is not a travel related deduction. Uniform items must have a company insignia or logo; no type of “street” clothes qualify for this deduction.

Note: If you were reimbursed for any of your uniform maintenance expenses such as alterations or dry cleaning, do not include these amounts. We cannot take a deduction for any expense for which you were reimbursed. IRS regulations go even a little further. We cannot take a deduction for any expense for which you COULD have been reimbursed. For example: if your airline will reimburse you for your uniform alteration expenses but you just did not get around to submitting your receipts for reimbursement. The IRS will not allow this expense as a deduction because you ‘could’ have been reimbursed. Thus, do not include any expenses for which you were reimbursed, or any expenses for which you could have been reimbursed, but were not.

UNIFORM ITEMS

UNIFORM MAINTENANCE

UNIFORM SHOES

ITEMIZED LIST OF DEDUCTIONS

Uniform Belt $

Uniform Dress $

Uniform Epaulets $

Uniform Jacket $

Uniform Hat $

Uniform Maternity Dress $

Uniform Pants $

Uniform Purse $

Uniform Scarf $

Uniform Serving Garment/Apron $

Uniform Shirt $

Uniform Skirt $

Uniform Sweater $

Uniform Tie $

Uniform Coat, Gloves, Cap $

Uniform Alterations $

Home Laundering of Uniform $

Professional Laundering $

Dry Cleaning $Uniform Shoes $

Shoe Repair $

Shoe Shine $

(Must be purchased from a Uniform Store)

17 18www.flightax.com 317.984.5812

F LIG

HTA

X

F LIG

HTA

X

Your answers to these specific questions will determine your legal state of residency. Different states have different rates and rules. GA will allow you to deduct your flying professional deductions where IN will not. However, we cannot just choose where to pay tax; this location is based on the answer to the questions on the previous page.

We would all like to claim residency in TX, FL, NV, NH, TN and any other state that does not have state tax. For some of you, this is a reality. But using your Ex’s friend’s address in Florida to avoid paying NY State and City tax will land you in major trouble with the law.

Keep in mind that with the sharing of information and technology, states are getting much smarter and tracking income and residency!

There is a federal ruling (Title 49, Section 40116 United States Code, (f) (C)) that will not allow any state to attach the earnings of an air crew employee unless over 50% of the flying is done within the state lines of that state. There are only very, very few situations where this can be proven by the state – CA is the main state where this is an issue with flying up and down the coast.

If you have questions on which address you should be providing to your company for state tax purposes, just give Flightax a call and we will help you determine the proper state for your residency.

STATE OF RESIDENCY CONT.Enter additional “out of pocket” uniform expenses below. Do not include items provided by the company through replacement programs. You need a receipt for each item purchased, regardless of the amount. The $75 rule does not apply as this is not a travel related deduction. Uniform items must have a company insignia or logo; no type of “street” clothes qualify for this deduction.

Note: If you were reimbursed for any of your uniform maintenance expenses such as alterations or dry cleaning, do not include these amounts. We cannot take a deduction for any expense for which you were reimbursed. IRS regulations go even a little further. We cannot take a deduction for any expense for which you COULD have been reimbursed. For example: if your airline will reimburse you for your uniform alteration expenses but you just did not get around to submitting your receipts for reimbursement. The IRS will not allow this expense as a deduction because you ‘could’ have been reimbursed. Thus, do not include any expenses for which you were reimbursed, or any expenses for which you could have been reimbursed, but were not.

UNIFORM ITEMS

UNIFORM MAINTENANCE

UNIFORM SHOES

ITEMIZED LIST OF DEDUCTIONS

Uniform Belt $

Uniform Dress $

Uniform Epaulets $

Uniform Jacket $

Uniform Hat $

Uniform Maternity Dress $

Uniform Pants $

Uniform Purse $

Uniform Scarf $

Uniform Serving Garment/Apron $

Uniform Shirt $

Uniform Skirt $

Uniform Sweater $

Uniform Tie $

Uniform Coat, Gloves, Cap $

Uniform Alterations $

Home Laundering of Uniform $

Professional Laundering $

Dry Cleaning $Uniform Shoes $

Shoe Repair $

Shoe Shine $

(Must be purchased from a Uniform Store)

17 18www.flightax.com 317.984.5812

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HTA

X

F LIG

HTA

X

If you cover more than one airport, transportation between your base (company mailbox) and another airport is deductible. Do not include expenses for transportation to your base (company mailbox) or home.

Computers are not deductible. The IRS has issued a 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 their computer. By law, a computer must be used for the convenience of the employer and required as a condition of employment.” 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. All airlines provide computers for their employees to use. Although they are a huge asset to our jobs, the airline does not require that we have a personal computer or laptop.

Your profession requires you to have specific items for travel and to perform your job in areas of service and safety. Enter the expense below for the items you have purchased during the applicable tax year. Receipts are required for items priced over $75 each. If you purchase an item that is under $75 you need to make a record of that purchase in your logbook or on your schedule. You must have documentation, either a receipt or logbook/schedule entry, for each item you list on the next page.

TRANSPORTATION EXPENSE

COMPUTER & RELATED EXPENSES

TRAVEL REQUIRED ITEMS

Three Letter Airport Code

Number of Round Trips Per Year

Cost Per Round Trip (mileage) $

Three Letter Airport Code

Number of Round Trips Per Year

Cost Per Round Trip (mileage) $

Printer/Software Deductions

Yearly Cost of Paper for Company Use $

Yearly Cost of Toner/Ink Cartridges $

Bidding Computer Software/App $

Internet/Online Services

Airline Schedule Fees – FLICA etc. $Yearly Cost of home internet access fees, DSL Cable AirCard, VoIP, Skype $

Yearly Cost of Hotel Access Fees $

Luggage Items $

Garment Bag $

Luggage Tags (lanyard, badge holder) $

Name Tags $

Wings $

Watch Battery/Repair $

Airline Access Keys $

Personal Organizer $

Logbook $

Galley Supplies (cork screw, tape, markers) $

Flashlight $

Batteries $

Portable Alarm Clock $

Portable Curling Iron $

Portable Hair Dryer $

Portable Iron $

Portable Security Device $

Portable Smoke Detector $

International Voltage Converter $

International Currency Converter $

Manual Replacement $

Update and Revision Services $

ID Replacement $

Company Business Cards $

Foreign Visa Expense $

Passport Fee $

Passport Photo Expense $

Global Entry Fee $

Professional Publications $

Bid Service Fees $

Trading Service Fees $

2nd Language Education Expense $

Drug Testing Fees $

19 20www.flightax.com 317.984.5812

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HTA

X

F LIG

HTA

X

If you cover more than one airport, transportation between your base (company mailbox) and another airport is deductible. Do not include expenses for transportation to your base (company mailbox) or home.

Computers are not deductible. The IRS has issued a 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 their computer. By law, a computer must be used for the convenience of the employer and required as a condition of employment.” 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. All airlines provide computers for their employees to use. Although they are a huge asset to our jobs, the airline does not require that we have a personal computer or laptop.

Your profession requires you to have specific items for travel and to perform your job in areas of service and safety. Enter the expense below for the items you have purchased during the applicable tax year. Receipts are required for items priced over $75 each. If you purchase an item that is under $75 you need to make a record of that purchase in your logbook or on your schedule. You must have documentation, either a receipt or logbook/schedule entry, for each item you list on the next page.

TRANSPORTATION EXPENSE

COMPUTER & RELATED EXPENSES

TRAVEL REQUIRED ITEMS

Three Letter Airport Code

Number of Round Trips Per Year

Cost Per Round Trip (mileage) $

Three Letter Airport Code

Number of Round Trips Per Year

Cost Per Round Trip (mileage) $

Printer/Software Deductions

Yearly Cost of Paper for Company Use $

Yearly Cost of Toner/Ink Cartridges $

Bidding Computer Software/App $

Internet/Online Services

Airline Schedule Fees – FLICA etc. $Yearly Cost of home internet access fees, DSL Cable AirCard, VoIP, Skype $

Yearly Cost of Hotel Access Fees $

Luggage Items $

Garment Bag $

Luggage Tags (lanyard, badge holder) $

Name Tags $

Wings $

Watch Battery/Repair $

Airline Access Keys $

Personal Organizer $

Logbook $

Galley Supplies (cork screw, tape, markers) $

Flashlight $

Batteries $

Portable Alarm Clock $

Portable Curling Iron $

Portable Hair Dryer $

Portable Iron $

Portable Security Device $

Portable Smoke Detector $

International Voltage Converter $

International Currency Converter $

Manual Replacement $

Update and Revision Services $

ID Replacement $

Company Business Cards $

Foreign Visa Expense $

Passport Fee $

Passport Photo Expense $

Global Entry Fee $

Professional Publications $

Bid Service Fees $

Trading Service Fees $

2nd Language Education Expense $

Drug Testing Fees $

19 20www.flightax.com 317.984.5812

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Your profession requires you to keep in touch with your employer, your fellow flight attendants and crew scheduling. We can take a portion of your cell phone expenses for business related calls. Provide your expenses in the area below.

Home phone or basic home phone service is not deductible. The IRS believes that the basic home land line service is an expense that most Americans have regardless of their profession. Cell phones, in time, will probably be included in this category. Many of us don’t even have a land line anymore and use our cell phone as our exclusive contact number. Make sure that the amounts you provide to us are for your single phone only. If your plan covers 3 phones, make sure to subtract the added cost of the additional phones. Because your job requires you to be directly accessible to the company, we have the grounds for a deduction of the expenses which are incurred. If you are on reserve, this is obvious, but you must also be available for contact by or to contact crew scheduling for non-routine situations, cancellations and mechanicals. You are also using your cell phone to call your supervisor, union or fellow crew members. We have asked you for the amount of your monthly base. Be sure to include taxes and fees. From this base, we will take the deduction based on the percentage of business usage. As a general rule, very few deductions which can also have a personal use pass IRS scrutiny at 100% business. Most of our clients tell us the business use percentage is between 50% and 70%. If you believe you have a percentage of business use other than this, please provide the amount in the space provided. Don’t hesitate to call us if you have any questions about this deduction!

If you have any expenses related to required communication between you and the company or the union, these expenses are deductible. If you are required to fax a copy of a doctor’s note to your supervisor and Kinko’s charges you to do this, make sure you save the receipt or put it on a credit card. Enter any expenses for copying, faxing or mailing in these specific entry areas.

COMMUNICATIONS

Cell Phone Purchase $

Cell Phone Base Charge Per Month $

Percentage Business Use

Direct Bill Calling Card $

International Calling Card $

Company Fax Expense $

Company Copy Expense $

Company Mailing Expense $

Company Overnight Expense $

21 317.984.5812

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X

As a unionized employee, your union dues, initiation fees and any union publications are all deductible. If you actually work for the union as a union rep. or direct employee, you will have additional deductions. Please download our Union Rep. Worksheet at www.flightax.com.

If you transferred bases but did not move your primary home, these expenses are considered a professional deduction versus a moving deduction. If you had any expenses related to moving your crash pad or airport car from one base to another, list these expenses below. You must have receipts!

UNION EXPENSES

COMMUTER PAD MOVING EXPENSE

Union dues (amount actually paid during the year) $

Union Initiation Fees $

Union Publications $

Travel Expenses for Union Meetings $

Old Base

New Base

Distance Between Crash Pads Miles

Date Moved / /

Shipping Expense $

Lodging Expense (only while in transit) $

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F LIG

HTA

X

Your profession requires you to keep in touch with your employer, your fellow flight attendants and crew scheduling. We can take a portion of your cell phone expenses for business related calls. Provide your expenses in the area below.

Home phone or basic home phone service is not deductible. The IRS believes that the basic home land line service is an expense that most Americans have regardless of their profession. Cell phones, in time, will probably be included in this category. Many of us don’t even have a land line anymore and use our cell phone as our exclusive contact number. Make sure that the amounts you provide to us are for your single phone only. If your plan covers 3 phones, make sure to subtract the added cost of the additional phones. Because your job requires you to be directly accessible to the company, we have the grounds for a deduction of the expenses which are incurred. If you are on reserve, this is obvious, but you must also be available for contact by or to contact crew scheduling for non-routine situations, cancellations and mechanicals. You are also using your cell phone to call your supervisor, union or fellow crew members. We have asked you for the amount of your monthly base. Be sure to include taxes and fees. From this base, we will take the deduction based on the percentage of business usage. As a general rule, very few deductions which can also have a personal use pass IRS scrutiny at 100% business. Most of our clients tell us the business use percentage is between 50% and 70%. If you believe you have a percentage of business use other than this, please provide the amount in the space provided. Don’t hesitate to call us if you have any questions about this deduction!

If you have any expenses related to required communication between you and the company or the union, these expenses are deductible. If you are required to fax a copy of a doctor’s note to your supervisor and Kinko’s charges you to do this, make sure you save the receipt or put it on a credit card. Enter any expenses for copying, faxing or mailing in these specific entry areas.

COMMUNICATIONS

Cell Phone Purchase $

Cell Phone Base Charge Per Month $

Percentage Business Use

Direct Bill Calling Card $

International Calling Card $

Company Fax Expense $

Company Copy Expense $

Company Mailing Expense $

Company Overnight Expense $

21 317.984.5812

F LIG

HTA

X

As a unionized employee, your union dues, initiation fees and any union publications are all deductible. If you actually work for the union as a union rep. or direct employee, you will have additional deductions. Please download our Union Rep. Worksheet at www.flightax.com.

If you transferred bases but did not move your primary home, these expenses are considered a professional deduction versus a moving deduction. If you had any expenses related to moving your crash pad or airport car from one base to another, list these expenses below. You must have receipts!

UNION EXPENSES

COMMUTER PAD MOVING EXPENSE

Union dues (amount actually paid during the year) $

Union Initiation Fees $

Union Publications $

Travel Expenses for Union Meetings $

Old Base

New Base

Distance Between Crash Pads Miles

Date Moved / /

Shipping Expense $

Lodging Expense (only while in transit) $

22www.flightax.com

CALL US TODAY!317.984.5812

ABOUT FLIGHTAX

www.flightax.com

220 West Jackson Street P.O. Box 139 Cicero IN, 46034

phone 317.984.5812 fax 800.951.8879

FLIGHTAX has been in business since 1990. Our team of CPA’s and Enrolled Agents provide you with the most comprehensive tax consultation and preparation possible. We are members of the National Association of Tax Preparers, Indiana CPA Society, and the National Association of Enrolled Agents.

Last year, we prepared tax returns for over 4,500 clients in all 50 states and abroad at 56 different airlines. The key to our success is our knowledge of the airline industry, expertise in tax code and how the two affect you. The best way to keep up to date on the changes in the airline industry is to literally be a part of that industry.

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