Tax Help

pwa

pwa

Well-Known Member
This is my first time filing taxes as self employed (contract pilot) and i was looking for other JC pilots that have filed as self employed that can give me some advice for filing and finding more deductions?
Thanks
 
*Upvote*

I'm a "freelance" CFI, the quarterly tax filing deadline is coming up but other than that I have no real clue. I've kept track of my income and set money aside, but the best I can figure is either pay $100 for the edition of turbotax that is for self employed people or pay $100 and go to H&R Block.
 
JordanD said:
*Upvote*

I'm a "freelance" CFI, the quarterly tax filing deadline is coming up but other than that I have no real clue. I've kept track of my income and set money aside, but the best I can figure is either pay $100 for the edition of turbotax that is for self employed people or pay $100 and go to H&R Block.
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You a 1099 contractor or an actual freelance CFI?
 
JordanD said:
I'm a "freelance" CFI, the quarterly tax filing deadline is coming up but other than that I have no real clue. I've kept track of my income and set money aside, but the best I can figure is either pay $100 for the edition of turbotax that is for self employed people or pay $100 and go to H&R Block.
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Don't think you really need to spend any money on Turbo Tax or H&R Block, the 1040-ES is a pretty simple form. A far better place to spend you money is on a local CPA though, they will give you advice on how you should be handling money and taxes.

More important than keeping track of money, you need to be keeping track of expenses. Anything necessary and customary to spend as a pilot can be deducted right off the top of your schedule C income. Charts, pens, flashlight batteries, insurance, mileage, meetings with customers, meals, telephone, business cards, tax preparation, flight training, currency flights, etc, etc, etc. It is a long, long list, and a CPA can tell you in a few minutes what you can and can not deduct.
 
Also any overnights can be deducted at the standard DOT rate or the rate for that city if you want to look them all up. For most pilots this is a very big deduction especially since you're not paid per diem.
 
Go through the form carefully and you should be all good to go! A quick 30 minutes with a CPA can clear your questions and help you on your next quarters filings. I suggest as well to get one of those receipt organizers to help keep track of expenses.
 
drunkenbeagle said:
As far as the tax man is concerned, there is zero difference.
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Be very careful when distinguishing a W-2 employee and 1099 independent contractor, whether you're the company or the individual.

And thou shalt neither seek nor accept tax advice on thy Inter Nets.
 
z987k said:
Also any overnights can be deducted at the standard DOT rate or the rate for that city if you want to look them all up. For most pilots this is a very big deduction especially since you're not paid per diem.
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Maybe, but if you are freelance, or an officer of the company, the IRS says no
 
tomokc said:
Be very careful when distinguishing a W-2 employee and 1099 independent contractor, whether you're the company or the individual.

And thou shalt neither seek nor accept tax advice on thy Inter Nets.
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W-2 = employee.

1099 (contractor) is the same as freelance (not an employee).

Ask an actual CPA, not anyone here
 
drunkenbeagle said:
Don't think you really need to spend any money on Turbo Tax or H&R Block, the 1040-ES is a pretty simple form. A far better place to spend you money is on a local CPA though, they will give you advice on how you should be handling money and taxes.

More important than keeping track of money, you need to be keeping track of expenses. Anything necessary and customary to spend as a pilot can be deducted right off the top of your schedule C income. Charts, pens, flashlight batteries, insurance, mileage, meetings with customers, meals, telephone, business cards, tax preparation, flight training, currency flights, etc, etc, etc. It is a long, long list, and a CPA can tell you in a few minutes what you can and can not deduct.
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I know this is kind of a broad question, but would you happen to know what the general going rate is for something like that? I'm looking for the most quick and painless way really.

I've done a decent job of keeping track of expenses, but my method for keeping track of income isn't terribly official, even though I know how much I've made. Not sure what the best way of keeping track is.
 
JordanD said:
I know this is kind of a broad question, but would you happen to know what the general going rate is for something like that? I'm looking for the most quick and painless way really.

I've done a decent job of keeping track of expenses, but my method for keeping track of income isn't terribly official, even though I know how much I've made. Not sure what the best way of keeping track is.
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Cheaper than you would think. $100/hour maybe, and a very simple CFI return won't take them more than an hour.

Hell, they may do it for free for a BFR, or let you work it off through referrals from wealthy customers. Either way, talk to a CPA, they will work something out with you
 
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