The
per diem that flight
crews are
reimbursed from their employer is given to them to cover or offset
meals and
incidental
expenses (M&IE).
That per diem can be in one of two forms:
- Taxable Per Diem
-
Non-Taxable Per
Diem
Taxable per diem
reimburses
crewmembers for M&IE
expenses that did NOT involve overnight travel away from their
tax home. When
pilots or flight attendants fly
day-trips, the per diem
they receive is taxable per diem, and is included in Box 1 of the W-2 form
(wages, tips, other compensation).
Taxable per diem does not influence the
per diem deduction.
M&IE expenses are also not affected by trips that do not involve travel away
from a pilot or flight attendant's tax home. EZPerDiem.com automatically
addresses this because day trips cannot be entered into the
Per Diem
Calculator. In other words, day trips do not add to a flight
crewmember's M&IE expenses or their per diem reimbursement. As far as the
per diem deduction is concerned, day-trips simply do not exist, and taxable per
diem is simply part of a taxpayer's
gross income.