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.
Taxable per diem may also result from an employer providing per diem via a non-accountable plan.
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