Flying offshore and paying taxes

[Bluetamon]

It's tax time again so I'm looking for opinions/facts on a couple of tax related items pertaining to GOM pilots.

 

1) Because I live in Florida and work in Louisiana, what are the tax policies as far as exemptions for travel to and from work? Can I claim airline travel costs and driving mileage on my taxes. I don't work at my companies main base/headquarters so am i technically able to do this? I am not working at my, what the IRS calls, tax home (main base), so would I get compensated for the mileage for the difference between my main base and where I'm stationed?

 

2) Per diem- If I get a per diem that is less than what the DOT rate is ($52), can i claim the difference? For example, if i am paid $10 a day per diem for 100 days, can i claim $42 for 100 days on my taxes?

 

 

That's all I can think of for now. If anybody has any good advice, tips, or websites for helicopter pilots filing taxes, please let me know.

[Wally]

It's tax time again so I'm looking for opinions/facts on a couple of tax related items pertaining to GOM pilots.

 

1) Because I live in Florida and work in Louisiana, what are the tax policies as far as exemptions for travel to and from work? Can I claim airline travel costs and driving mileage on my taxes. I don't work at my companies main base/headquarters so am i technically able to do this? I am not working at my, what the IRS calls, tax home (main base), so would I get compensated for the mileage for the difference between my main base and where I'm stationed?

 

2) Per diem- If I get a per diem that is less than what the DOT rate is ($52), can i claim the difference? For example, if i am paid $10 a day per diem for 100 days, can i claim $42 for 100 days on my taxes?

 

 

That's all I can think of for now. If anybody has any good advice, tips, or websites for helicopter pilots filing taxes, please let me know.

 

Been years since, but:

1. Your travel expenses (not just mileage) to commute from home, wherever that is, to your principle place of business are not deductible, as I recall. However, if you're in the pool and work assignments vary, you can write off the mileage from the nominal base of operations- like Lafayette- to wherever you're assigned, and mileage between bases if you drive. My recollection is that accepting a seat, long-term, is still deductible for the first year.

2. I wrote off the difference between the piddling per diem paid and whatever rate (DOT? I don't recall), no issues.

 

Keep records. You won't get rich by claiming expenses and deductions, but they accumulate.

[Fly for food]

If you live in FL but work in Louisiana, FL state tax return is what you should file. You should have every year signed a tax form from Lafayette which exempts you from them deducting state tax from your pay. However - if they have done this, getting a letter with the block number of the rig from which you predominantly work, with the GPS coordinates and the milage offshore will also exempt you from paying LA state taxes (as long as you are more than 12 miles offshore). Get the letter signed by someone at work.

As for milage - to and from place of work don't count. Per diem - don't know, new one on me.

 

FFF

[rick1128]

It's tax time again so I'm looking for opinions/facts on a couple of tax related items pertaining to GOM pilots.

 

2) Per diem- If I get a per diem that is less than what the DOT rate is ($52), can i claim the difference? For example, if i am paid $10 a day per diem for 100 days, can i claim $42 for 100 days on my taxes?

 

If you work in the transportation industry, which you do, you fall under the DOT provisions, so you can claim the difference. Another good one is checking the DOD or IRS per diem rates for individual cities. Some cities like NYC or LA have real steep per diem rates. Internationally it can be even more. You will have to keep a record.

[Gomer Pylot]

There are areas of the tax codes which are various shades of grey. Working in the transportation industry gives you some leeway. I always had an exemption filed to prevent Louisiana taxes from being withheld, and never had a problem with that. Since I never knew for sure where I was going to be working, I claimed mileage for everything. It's my understanding that commuting only applies if you're working at the same place all the time. I've never been audited, but the people I know who have been have not had a problem with this. They just told the auditor the situation, and the mileage to and from work was allowed. You can certainly claim the difference between what the employer pays as per diem and the standard allowance. I think it would be hard to prove that you're working in a high-cost city, unless you really are. There aren't any that I know of along the LA coast.

 

Disclaimer: I am not an accountant, nor a lawyer, just another taxpayer.

[rick1128]

There are areas of the tax codes which are various shades of grey. Working in the transportation industry gives you some leeway. I always had an exemption filed to prevent Louisiana taxes from being withheld, and never had a problem with that. Since I never knew for sure where I was going to be working, I claimed mileage for everything. It's my understanding that commuting only applies if you're working at the same place all the time. I've never been audited, but the people I know who have been have not had a problem with this. They just told the auditor the situation, and the mileage to and from work was allowed. You can certainly claim the difference between what the employer pays as per diem and the standard allowance. I think it would be hard to prove that you're working in a high-cost city, unless you really are. There aren't any that I know of along the LA coast.

 

Disclaimer: I am not an accountant, nor a lawyer, just another taxpayer.

 

Any sort of record is accepted. Logbook, hotel reciepts, copy of company duty log, etc.

[Bluetamon]

Wanted to just thank everybody for the many and quick responces I received. Last year I claimed my travel mileage and perdiem difference so I think I'll just keep doing that. I've already signed the form to get out of paying LA taxes and since FL doesn't have state income tax, I'm flying high (no pun intended). Now just going to cross my fingers so I don't get audited. Thanks again and any other thoughts would be great.

[Gomer Pylot]

The per diem difference is absolutely legal, and if you just use the standard meal allowance you don't even need receipts. The IRS doesn't care at all about state taxes, and that should never come up on an audit. I wouldn't be worried about justifying the mileage for an audit, either. Just make sure they know you're in the transportation industry, under DOT standards.

[JohnLeePettimore]

Just to satisfy my curiosity, I wish to expand this one as well as bumping it. What about tuna pilots? Pilots that work on a shhip flagged from a country across the globe. What does that look like on taxes?

[aeroscout]

Just to satisfy my curiosity, I wish to expand this one as well as bumping it. What about tuna pilots? Pilots that work on a shhip flagged from a country across the globe. What does that look like on taxes?

You have to be out of the country for 11 out of the 12 months(approximately) of the tax year to be exempted from US federal taxes.

If you spend more than 30 days in the states that tax year, it's all taxable.

That is my understanding on the subject.

[Gomer Pylot]

The IRS rules cover that, and they're available for free. You can download them, or talk to a tax professional, who may or may not know what (s)he's talking about.

[annewayne26]

The Internal Revenue Service has allowed a number of tax code loopholes. Through these loopholes, the resourceful can save money by exercising tax exemptions. Because tax rate really declines when annual income exceeds $1.5 million, there's definitely something at work. It's how the rich avoid taxes.

[aeroscout]

The Internal Revenue Service has allowed a number of tax code loopholes. Through these loopholes, the resourceful can save money by exercising tax exemptions. Because tax rate really declines when annual income exceeds $1.5 million, there's definitely something at work. It's how the rich avoid taxes.

If the "rich" pay 100 times the tax amount you do, how is that "avoiding taxes" ? In my opinion it's not. The only "rich" who "avoid paying taxes" are the ones who complain about it but do it anyway.

Any "rich" person can send more than their required amount to the treasury, but you never see the complainers do that. I wonder why.

[Gomer Pylot]

The rich do not pay 100 times the tax I do, not in percentage. If they make 100,000 times as much as I do, and many do, and pay 100 times the tax I do, that's a huge benefit. And most rich people don't pay taxes on income, they pay it on capital gains. That's why corporate execs get stock options in lieu of salary - the maximum tax on capital gains is 15%. That's the maximum, even if they do nothing else to reduce it. Since the Ray-gun was President, taxes on the rich have been reduced repeatedly, and now are a small fraction of what they once were. And the rich weren't hurting at 80% taxes, nevermind 15%, which is less than I pay.

Edited October 3, 2014 by Gomer Pylot

[aeroscout]

Don't fall for the rich are evil and avoiding taxes meme. It's not at all true.

[supergokougt]

I have been using google sheets to keep track of spending for work and any other things i can deduct. Works good as a spreadsheet on my phone. Which will work in my defense if the govt comes asking.

 

Having an accountant is awesome too since they know these things and they also sign their name on the return protecting you a little bit more.

 

Mine usually costs 125 at tax time and he gets me way more than I get on turbotax or anything else i also try along side of him.