A Free Site Brought To You By

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

Prorate

Prorate is a term used in IRS Publication 463 under the topic of the standard meal allowance.  The first day of a trip and the last day of a trip are subject to the prorating rules described in IRS Publication 463. The reason prorating is important to the standard meal allowance is because the first day and last day of a trip are considered partial days.  A full day goes from midnight to midnight while the first partial day goes from some time after midnight to midnight, and the last partial day goes from midnight to some time before midnight.  Because the first and last day are shortened, a taxpayer may be subject to a reduced (or prorated) standard meal allowance on those days.  The following is an example:

Assume Amy, a flight attendant for Continental Airlines, is on a 4-day trip.  Amy is based in EWR so EWR is Amy's tax home.  On this particular 4-day trip, Amy has overnights (layovers) in LAX, TPA, and DFW respectively.   The following illustration shows how a per diem calculator should select the overnight and prorate them for the standard meal allowance:

per diem meal allowance prorating example

Notice that the last day of the trip where Amy returned to EWR uses the previous day for the layover city.  That is normal and can be found within IRS Publication 463.

How much gets prorated is subject for debate.  As of this writing, IRS Publication 463 says the following:

per diem meal allowance prorating excerpt

It is up to the tax preparer or taxpayer to interpret whether an airline pilot or flight attendant should use 75% or 100% on the first and last day of a trip.  The EZPERDIEM.COM Settings Page allows pilots and flight attendants to change this to 75% or 100% depending on their interpretation of the prorating rules.  The EZPERDIEM.COM Per Diem CalculatorTM is defaulted to prorate at 75%, but changing the proration rate to 100% is simple and can be done at any time (even after all of the layovers are entered for the year).

IRS Publication 463
Traveling away from home (Prorating)
www.irs.gov


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
http://ezperdiem.com/pricing.php/



User Agreement | Per Diem Deduction | Full Service Crew Taxes | Pilot Jobs
Copyright 2010 Aviation Tax Glossary. All Rights Reserved.
Sign In