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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

Transition Period

The transition period covers the last three months of a calendar year or tax year (October 1 - December 31).  The transition period is referred to in IRS Publication 1542 under the topic of using standard per diem rates as a method for writing off M&IE expenses from a taxpayer's travel expensesCONUS and OCONUS per diem rates are provided by the GSA and Department of State for many purposes.  The IRS allows CONUS and OCONUS per diem rates to be used for the per diem deduction.  The transition period causes a dilemma because the per diem rates aren't valid for the same time frame as a normal calendar year.  Per diem rates are generally valid from October 1st to September 30th, while a tax year is from January 1st to December 31st.  For example, the 2008 CONUS and OCONUS per diem rates have a cycle from Oct. 1, 2007 to Sep. 30, 2008 while the 2008 tax year is from Jan. 1, 2008 to Dec. 31, 2008.  That means that 2008 per diem rates expire before the tax year is over.  The transition rules in IRS Publication 1542 allow taxpayers to use the following year's per diem rates during the transition period if they are available or to use the current year's per diem rates for the remainder of the year.  The caveat is that the method chosen must be used for the entire tax year.  Flight crewmembers are not allowed to use one method for one layover and another method for another layover because the IRS states that they must be consistent.  Because the per diem differences from one year to the next result in a negligible difference, the latter method is the method EZPERDIEM.COM uses in the Per Diem CalculatorTM.

Airline pilots and flight attendants don't need to know this information because EZPERDIEM.COM handles this issue automatically in The Per Diem CalculatorTM.  In other words, the flight crewmember simply enters the layover's IATA code next to the layover date and EZPERDIEM.COM handles all of the calculations, transition rules, per diem rate selections, etc.

IRS Publication 1542
Transition Rules
www.irs.gov


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