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Common Tax Phrases for
Pilots and Flight Attendants
2% Limit
A.G.I. (Adjusted Gross Income)
Above the Line Deductions
Accountable Plan
Actual Cost Meal Deduction
Adequate Records
Alternative Minimum Tax
Below the Line Deductions
CONUS
CPA (Certified Public Accountant)
City-by-City
Commuting Expenses
D.O.T. (Department of Transportation)
Day Trips
Department of State
Displaced
Documentary Evidence
Domicile
Effective Date
Effective Tax Rate
Employee Business Expenses
Enrolled Agent
Expiration Date
General Services Agency
Gross Income
Hours of Service Limits
IRS
IRS Form 1040
IRS Form 2106
IRS Publication 1542
IRS Publication 463
IRS Publication 529
Incidental Expenses
Indefinate Duty
Itemized Tax Deduction
Itenerant
M&IE
Meals
Necessary Expense
Non Taxable Per Diem
Nonaccountable Plan
OCONUS
Ordinary Expense
Per Diem
Per Diem Calculator
Per Diem Deduction
Per Diem Rates
Personal Expense
Prorate
Recordkeeping
Reimbursement
Rest
Schedule A
Seasonal End Date
Seasonal Start Date
Special Per Diem Rates
Standard Deduction
Standard Meal Allowance
Standard Per Diem Rates
Substantiated Expenses
TDY
Tax Attorney
Tax Audit
Tax Bracket
Tax Credit
Tax Deduction
Tax Home
Tax Liability
Tax Preparer
Tax Software
Taxable Income
Taxable Per Diem
Temporary Duty
Transition Period
Transportation Workers
Travel Expenses

Alternative Minimum Tax

The alternative minimum tax or AMT is a tax that was originally intended to prevent higher income individuals from benefiting from many of the tax deductions that lower income individuals benefit from.  The AMT can be viewed as a separate tax system that may apply to taxpayers with higher incomes and a lot of deductions.  As of 2008, taxpayers who made over $75,000 and had many deductions could possibly be affected by the AMT.

The AMT was originally set up decades ago as a way to plug loopholes that benefit affluent taxpayer's.  Because it was not adjusted for inflation, what was considered wealthy when the AMT began is now beginning to hit the upper-middle class.

As mentioned earlier, the AMT is a separate, or parallel, tax system.  If a flight crewmember thinks they might be affected by the AMT, they should fill out IRS Form 6251.  Failure to pay the AMT could subject a taxpayer to fines imposed by the IRS if a tax return is ever examined in an IRS audit.

If the AMT affects a flight crewmember, then itemized tax deductions that the flight crewmember may have incurred will not help that year because the AMT tax will need to be paid instead.  That means an airline crewmember's employee business expenses and per diem deduction don't result in a lower tax liability because those are components of the itemized deductions for a flight crewmember.

If the AMT affects a taxpayer in a given year, the taxpayer may get tax credit for it in future years.  While this is beyond the scope of this article, a link about this subject is provided below.

 

AMT Calculator
See if 2008 AMT affects you
www.yourmoneypage.com


Form 6251
AMT Tax Form
www.irs.gov


AMT Credit
Learn More About Credit for the AMT
www.fairmark.com


The AMT
AMT Article (Jan 9, 2008)
www.smartmoney.com


The AMT
about.com AMT Article
www.about.com


EZPERDIEM.COM
Airline Pilot Taxes and Flight Attendant Taxes
http://ezperdiem.com


EZPERDIEM.COM - Articles
Table of Contents
http://ezperdiem.com/articles/


EZPERDIEM.COM - FAQs
Frequently Asked Airline Crew Tax Questions
http://ezperdiem.com/faqs/


EZPERDIEM.COM - Pricing
Lowest Prices for Flight Crew Taxes
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