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Substantiated Expenses

What does it mean to substantiate tax deductions?

Substantiated expenses are expenses that have a record to support them.  Sometimes substatiating might involve documentary evidence, such as a receipt to support the validity of the expenses.  It is very important for flight crewmembers to properly document aviation expenses that they deduct from their taxes so that they can be validated if a tax return is audited by the IRSSee tax audit

What flight crew expenses must be substantiated?

All aviation-related expenses that are deducted from a flight crewmember's tax return must be substantiated for the tax deduction to be valid.  That being said, not every expenses requires a receipt.  A substantiated expense is one that a flight crewmember can prove through the use of adequate recordsIRS Publication 463 describes the level of recordkeeping required by flight crewmembers.

Travel expenses less than $75 each do not require a receipt, even though they must still be substatiated via a record.  Also, M&IE expenses do not need a receipt if using standard meal allowances in lieu of actual costs.  But, even with a per diem calculation, a record of the flights with layovers must be kept to substantiate the deduction.

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