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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

Below the Line Deductions

Below the line deductions are tax deductions or adjustments that modify a taxpayer's adjusted gross income and are used to calculate a taxpayer's taxable income.  The so-called "line" is AGI (Adjusted Gross Income).  Therefore, tax deductions that occur after AGI is calculated are called below-the-line deductions.  Any deductions that modify gross income and occur before AGI is calculated are called above-the-line deductions.  Below the line deductions can be one of two forms (either itemized deductions or the standard deduction).

Below the line deductions are used in the following basic calculation:

Adjustable Gross Income - Below the Line Deductions = Tax Income

Employee business expenses make up only one part of airline pilots' or fight attendants' itemized tax deductions, and itemized deductions are below-the-line deductions.  All of the itemized deductions that pilots and flight attendants write-off get entered on IRS Form 2106, so you can think of IRS Form 2106 essentially as one big itemized deduction.  That is the reason that only pilots and flight attendants who itemize can write their airline job expenses.

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