Quote:
Originally Posted by katbuad  True, but not complete. Box 12d code is L is Substantiated employee business expense reimbursements (nontaxable). These are per diems that exceed the M&IE rates.
Per diems can also be included in wages (taxable), especially those earned on day trips (no overnights). |
Tthe amount in box 12d with the letter L (I'm talking crewmembers) is the amount your company paid for reimbursements (per diem since we are talking pilots). It has nothing to do with the M&IE rates, it is what you were paid and the amount you are paid in per diem is determined by the contract at each individual company. My husband's per diem was $5265.33. After figuring out the allowable amount as per the IRS for every city he overnighted in, he was entitled to $8761 in pay for his overnights in those cities. Per diem that was taxed. such as that for day trips is not included in this amount so you don't even have to worry about it since the taxable per diem was already included in taxable income. Figuring the actual allowable per diem for each city as per IRS allowances is the most difficult part. You have to determine if you will use the standard rate or each individual city rate. Once you determine which one you will use, you have to use it for the whole thing, you can't pick and choose. Then there are 2 ways to figure the percentage since you obviously aren't on an overnight for 24 hours on your first and last days of work. I know one way is to use 75% on the first and last day. I have found it much easier to have someone do that part for a relatively small fee. It really is pretty simple once you understand what you are doing.
On form 2106 you enter your expenses for stuff such as union dues, flightbags, medicals, etc on line 4, 6, 8 and 9 in column a (ours was $3389). Then the allowable IRS per diem is entered on lines 5 and 6 in column b. Ours was $8761. then you enter the amount from W2 box 12d (L) on line 7 column b. Ours was $5265. Then you subtract line 7 column b from line 6 column b. Ours was $8761-$5265=$3496. The you multiply line 8 column b by 75%. So $3496 x .75 = $2622. You then add line 9 columns a and b to get your employee business expenses. Ours were $3389 + $2622 = $6011. So by doing the per diem and adding in the other expenses we get a $6011 deduction. If you use turbo tax, it automatically puts everything on the correct lines. You just have make sure you check the box for transportation employees. Hope this helps.
Jan