Taxes

stuckingfk

stuckingfk

Well-Known Member
Do any CFI's here deduct the cost of being a CFI? For example, could I deduct the cost of my headset, gas to/from the airport, charts, IAP's, etc?

The reason I ask, I am a newly employed CFI at UND. I got hired during last week (along with roundout here on JC).

Thanks for your help
 
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Do any CFI's here deduct the cost of being a CFI? For example, could I deduct the cost of my headset, gas to/from the airport, charts, IAP's, etc?

The reason I ask, I am a newly employed CFI at UND. I got hired during last week (along with roundout here on JC).

Thanks for your help

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If you are an independant contractor, then yes you may deduct these expenses... If you are an employee, you may not...

How can you tell? Do they take taxes out of your check? Do they pay their half of your SS Tax? If yes, you are an employee, if no, you are an independant contractor...

My guess is if you are working for UND, you are in fact an employee... Sorry...
 
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Do any CFI's here deduct the cost of being a CFI? For example, could I deduct the cost of my headset, gas to/from the airport, charts, IAP's, etc?

The reason I ask, I am a newly employed CFI at UND. I got hired during last week (along with roundout here on JC).

Thanks for your help

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If you are an independant contractor, then yes you may deduct these expenses... If you are an employee, you may not...

How can you tell? Do they take taxes out of your check? Do they pay their half of your SS Tax? If yes, you are an employee, if no, you are an independant contractor...

My guess is if you are working for UND, you are in fact an employee... Sorry...

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Thanks for the input, yeah we are employees so I am SOL. I was afraid that I couldn't but I thought I'd ask to make sure.
 
Hate to step on FalconCapt's toes here, but his advice is not quite accurate. There are a variety of employment-related expenses which, if not reimbursed by your employer, can be deducted on your taxes (Schedule A, I think). For example, because membership in the state bar is a requirement for me to work as a lawyer, I could deduct bar membership expenses if my employer did not reimburse me for them. Similarly, my wife can deduct her union dues because union membership is required for her employment. Sadly, deductions for unreimbursed business expenses such as these are limited to those expenses which exceed 2% (I think) of your AGI, which put them beyond my reach most years.

The best place to look for answers is the IRS website which has some (surprisingly) helpful FAQs that may help you. Also, I'm reasonably certain that there is a separate publication describing employment-related expenditures which are and are not deductible.

Incidentally, ordinary commuting expenses between your home and your ordinary place of work is NEVER deductible, regardless of whether you are an employee or independent contractor.

MF
 
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Hate to step on FalconCapt's toes here, but his advice is not quite accurate. There are a variety of employment-related expenses which, if not reimbursed by your employer, can be deducted on your taxes (Schedule A, I think). For example, because membership in the state bar is a requirement for me to work as a lawyer, I could deduct bar membership expenses if my employer did not reimburse me for them. Similarly, my wife can deduct her union dues because union membership is required for her employment. Sadly, deductions for unreimbursed business expenses such as these are limited to those expenses which exceed 2% (I think) of your AGI, which put them beyond my reach most years.

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Very true... But expenses he mentioned such as gas to drive to work and such are not reimbursable... The only possible reimbursable expenses for a CFI (perhaps FAA Medical, etc...) would typically not add up to more than 2% of his AGI...

I simplified my answer in the interest of brevity, but you are 100% correct...
 
Sorry to get off topic, but I was just wondering how you got that job. I'm hoping to do the same thing. I'm not 100% expecting to do that but just hoping for the possibility. A little extra flight time couldn't hurt.

Tom
 
I deduct my medical (before my employer reimbursed me for it) any/all uniform items (even my uniform shoes), sunglasses, headsets, union dues, and a few other things.

Completely legal and accountant-approved!

Some guys on reserve will write off cellular telephone service.
 
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Sorry to get off topic, but I was just wondering how you got that job. I'm hoping to do the same thing. I'm not 100% expecting to do that but just hoping for the possibility. A little extra flight time couldn't hurt.

Tom

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If you were talking to me, I just applied and then took the CFI test they administer during the 1st day. If you do well on that, you get asked to come back for an interview. If the interview went well and you are talked about well by the professors and hiring people, you are given a position of employment. After that, there is a simulator ride. If you pass that, next is a standardization ride in the warrior. If all goes well in between the two, you keep your job and start new hire training at a specified time.

It was a 4 day process for me so I didn't get much sleep that week, but it was well worth it.
 
You need to exceed what is called "Standard Deductions" to itemize (or actually deduct anything). The goverment won't allow any Joe to deduct. You must first have what I believe to be $5000 in deductions to itemize deductions. For most people this is your mortgage interest.
 
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You need to exceed what is called "Standard Deductions" to itemize (or actually deduct anything). The goverment won't allow any Joe to deduct. You must first have what I believe to be $5000 in deductions to itemize deductions. For most people this is your mortgage interest.

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My mom was saying something about a certain dollar amount, but she wasn't sure of the amount.

I don't think it is possible for me (I pay rent to an apartment), so the only things I can think of are a headset (just bought the 10-13X today), shirts, charts, but it won't reach $5,000.
 
Unless you go buy a bose headset and some random ridiculously expensive stuff for the heck of it.

Tom
 
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Unless you go buy a bose headset and some random ridiculously expensive stuff for the heck of it.

Tom

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Well I did spend $550 on the DC's. But who knows, I was looking at the FAQ section of the IRS website and found some interesting stuff. From looking at it, I am allowed to deduct certain things but cannon exceed 2% of my annual gross income. That shouldn't be a problem being a CFI, but maybe I am missing something.

For everyone who wants to look at it, click here.

Any more input?

Thanks
 
Sorry to veer slightly off topic, but what are the taxes you pay in the US?
What is your highest tax bracket? In oz, if you earn over 60K a yr, you pay a hefty 48.5%tax!!!!

Similar in the US?

CHeers
 
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Well I did spend $550 on the DC's. But who knows, I was looking at the FAQ section of the IRS website and found some interesting stuff. From looking at it, I am allowed to deduct certain things but cannon exceed 2% of my annual gross income. That shouldn't be a problem being a CFI, but maybe I am missing something.

For everyone who wants to look at it, click here.

Any more input?

Thanks

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It's actually the other way around -- you can deduct misc. business expenses only to the extent that they EXCEED 2% of your AGI. As an example, assume your annual AGI while you are flight instructing is $10,000 (hypothetically speaking, of course), and you spend $500 on a pair of DCs for use while flight instructing (I'm assuming that could be deductible, although I don't know that for sure). In that case you could deduct only $300 -- the amount by which your business expense execeeded 2% of your AGI (10,000 * .02 = $200).

I'm sure that's clear as mud. /ubbthreads/images/graemlins/insane.gif

And the other posters are correct, you have to choose to take either your standard personal deduction or itemize. If your itemized deductions do not exceed the standard personal deduction (~$5,500 for a single), then it makes no sense to itemize.

MF
 
Thanks MF,

Some of this is really confusing, but hey, that is what the government is for.

Hopefully I'll be making more than $10K this year.
 
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Sorry to veer slightly off topic, but what are the taxes you pay in the US?
What is your highest tax bracket? In oz, if you earn over 60K a yr, you pay a hefty 48.5%tax!!!!

Similar in the US?

CHeers

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It's hard to compare precisely. The highest U.S. federal tax bracket currently is 35% (I think), but there also are state income taxes which can range from 0% to 12% or more. Plus, locality payroll taxes in some major cities, as well as state and local property and sales taxes. The joys of a federalist system!

MF
 
I'm a Private Contractor, and I keep reciepts for everything. Gas to and from the airport, uniform shirts, charts, headsets (when I get a new pair...), training aids...you name it.
 
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I'm a Private Contractor, and I keep reciepts for everything. Gas to and from the airport, uniform shirts, charts, headsets (when I get a new pair...), training aids...you name it.

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THAT is the key, Private Contractor...
 
Hey Lucas, you know what this means!! /ubbthreads/images/graemlins/grin.gif

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My university required each incoming freshman to come to school with their own computer. Is there any way to deduct the cost of the computer from my tax liability?

The cost of a personal computer is generally a personal expense that is not deductible. However, if the school bills everyone, as a condition of attendance or enrollment, for proprietary computer devices and/or software available no where else, then this may qualify as an expense towards either the Lifetime Learning Credit or Hope Credit. For more information, refer to Publication 970, Tax Benefits for Education.

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LOL
 
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Hey Lucas, you know what this means!! /ubbthreads/images/graemlins/grin.gif

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My university required each incoming freshman to come to school with their own computer. Is there any way to deduct the cost of the computer from my tax liability?

The cost of a personal computer is generally a personal expense that is not deductible. However, if the school bills everyone, as a condition of attendance or enrollment, for proprietary computer devices and/or software available no where else, then this may qualify as an expense towards either the Lifetime Learning Credit or Hope Credit. For more information, refer to Publication 970, Tax Benefits for Education.

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LOL

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Yep, chock up another $700 in deductions!!

You get done with 102 yet? How did it go, you doing 221 this fall and if you are, who is your instructor?

Good luck, and I'll probably see you out there, I'll hopefully have a 221 student this fall.
 
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