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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
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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
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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

Necessary Expense

Necessary refers to a "necessary expense" as defined in IRS Publication 463.  Necessary is one of the tests that must be passed in order for an employee business expense or travel expense to be tax deductible.  IRS Publication 463 defines a necessary expense as one that is:

...helpful and appropriate for your business. An expense does not have to be required to be considered necessary.

For flight crew tax returns and airline tax preparation purposes that means an expense is considered necessary if it is considered helpful for airline flight crew employment tasks.  Furthermore, the aviation employer does NOT have to require the expense for it to be a legitimate airline-related employee business expense.  A great example of this is a calculator that an airline first officer keeps in his or her flight case for performing weight and balance tasks.  The airline employer may not require that pilots carry a calculator, but the calculator could easily be determined to be necessary based on the above definition of a necessary expense.

 

To learn more about how to determine whether or not an airline employee business expense is tax deductible, click here to visit an EZPERDIEM.COM Article that describes the methodology an airline pilot or flight attendant should go through deducting a given expense.  The EZPERDIEM.COM Expense ProcessorTM makes it simple to calculate airline pilot and flight attendant tax deductions for a given tax year.

 

See also, ordinary expense and personal expense.

 

 

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