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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

Tax Credit

A tax credit is a benefit that a taxpayer can qualify for on their tax return that is similar to a tax deduction. A tax credit will increase an airline pilot or flight attendant's tax refund or decrease the crewmember's tax liability by the amount of tax credit, and in that way it differs from a tax deduction.   Because a tax credit is a dollar-for-dollar conversion, a $3000 tax credit reduces a taxpayer's tax liability by $3000, a $5000 tax credit reduces the tax liability by $5000.  It does not depend on the tax bracket, though it can be affected by the AMT (alternative minimum tax).

 

Examples of tax credits are: Credit for child and dependent care expenses, credit for the elderly or disabled, education credit, etc.


Tax credits can and often do change from year-to-year, therefore reference publication 1040 or consult a tax preparer about the current tax credit changes for each given year.

Some examples of tax credits include:

  • The Hope and Lifetime Learning education credits

  • The Earned Income Credit

  • The Child Tax Credit

     

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