Do you keep receipts?

[bike21]

For my fellow itemizing airline folk...

Do you keep receipts for say - coffee, dinners, etc., on the road? I have been for awhile but have been getting annoyed at doing so. I see the benefit in keeping receipts on larger items (headsets, uniforms, sunglasses, etc.) but the little stuff is annoying. I did the standard per diem deduction for overnights this year with my tax company, so I see no reason to keep those pesky receipts making my wallet the size of George Costanza's. Thoughts?

edit to add: I also primarily use Microsoft Money to track my budget & expenses, so I wonder if I ran an expense report that would satisfy Mr. IRS?

 

[wheelsup]

If my understanding is correct, you can only deduct in excess of the standard M&IE rates - so you would need to keep receipts for those times you spent >$60ish (or whatever the standard M&IE rate is for that city). My guess is most people don't even come close to that if they are 121 folks . If you fit in this situation (you don't spend over the standard amount each night) then you get to deduct xx% of the difference in per diem received vs. the standard M&IE rate.

The XX% is dependant on the year, I wanna say it's 75% for 2007?

 

[SpiraMirabilis]

Also be careful of deducting these expenses if you get paid per diem.

 

[bike21]

Thanks for the replies, sounds like I can trash those pesky receipts. I will follow up with my tax pros to be sure, but it makes sense. The standard per diem/overnight deduction seems to work just fine, I don't get crazy on overnights with exuberant bar tabs

When I have some extra cash now & then with a good crew I will pick up drinks or dinner, but not too often as I gotsa pay back those student loans somehow! Even with my giant non-breaking guarantee, no per diem Captain reserve paychecks

 

[ComplexHiAv8r]

If you commute, some of your expenses when in base will be deductable and not gained on the per diem. You just have to look (say a month or 2) and see if it is worth it or not.

 

[Kristie]

I always think keeping receipts (anything $30 and up) is a good idea just in case you ever get audited (more people are getting audited every year)...having more information than less when you go to see the tax man will help them put you on the up and up list.

 

[Seggy]

If you use your credit card/check card, pretty sure you are ok if you bring in statements for the past year if you are audited.

 

[kellwolf]

I just use the standard ME&I deduction. Odds are your per diem won't go as high as the average, so you'll be able to deduct something. Like Wheelsup said, the only way receipts are gonna help is if you go over the amount. If you're spending more than $59 a day on food.....we need to talk.

Now, things like dry cleaning, my medical, uniforms, etc, I keep those receipts.

 

[SlumTodd_Millionaire]

If you commute, some of your expenses when in base will be deductable and not gained on the per diem. You just have to look (say a month or 2) and see if it is worth it or not.

Unfortunately, not the case. Check out the documents on the IRS website dealing with your "tax home" as defined by the government. As far as they're concerned, your crashpad, crashpad car, meals, etc... in your domicile airport are not deductible.

 

[Qgar]

It is my understanding that FA's are able to write off expenses such as hair/make-up, manicures etc. since we are "strongly encouraged" to look good while working. You bet I've saved every receipt. I'm thinking dry cleaning expenses for uniforms are deductible as well.

 

[SpiraMirabilis]

It is my understanding that FA's are able to write off expenses such as hair/make-up, manicures etc. since we are "strongly encouraged" to look good while working. You bet I've saved every receipt. I'm thinking dry cleaning expenses for uniforms are deductible as well.

Unfortunately I don't believe you can deduct this, although in my opinion it should be allowed. Uniforms and dry-cleaning of uniforms are however deductable if they are not suitable to be worn in normal day-to-day life (which yours and mine aren't. If your uniform at work was khaki pants and a polo shirt though you couldn't deduct them.) The main ones for a FA and pilot are these:

Uniforms, luggage, telephone, first aid classes, union dues (some people aren't aware this is deductable), equipment.