Saturday, July 24, 2004
Guardsmen/Reservists: How To Claim Travel Deductions
Happy April, everyone! I hoped you guys kept your receipts!
Here’s why: If you’re a guardsman or reservist, and your duties took you on an overnight stay 100 miles or more away from home, you can now deduct most unreimbursed expenses related to transportation, meals, and lodging, beginning with tax year 2003. You can't go hog wild, though--you can only deduct up to what the federal government pays its own employees for travel expenses. You can also deduct 36 cents per mile for use of your POV on these trips. (Details are here. Scroll down to page 33.)
Best of all, these are "above the line" deductions. Which means that you can claim them even if you don't otherwise itemize deductions. You don't have to fill out a schedule C, and you still get the benefit of your full standard deduction.
But you won't find these deductions itemized on a form 1040, though, like an IRA contribution or a teachers' expense deduction. Noooooo! nothing can be easy for us reserve component soldiers, can it???
I guess the NEA has more pull with the suits at the IRS than us grunts.
So instead, the bastards are going to make you jump through a couple of hoops.
Here's how to claim the deductions. Follow along carefully.
1. When you put together your returns, you download IRS form 2106 (Employee Business Expense), or a Form 2106 EZ (Unreimbursed Employee Business Expenses.)
2. Use one of those two forms to figure the deduction amount.
3. Fill out an IRS Form 1040. (Don't us a 1040 EZ or you'll miss the deduction!) Write the letters "RC" and the deduction amount on the dotted line. NOT in the box. The dotted line.
4. Add this figure to all your other deductions specifically itemized in lines 23-32.
5. Write the resulting sum into the box on 33.
6. Send this link to every guardsman or reserve soldier or family member in your distribution list, so I can rule the world so they can claim the deduction, too.
Stay tuned--more finance and tax tips on the way!
Splash, out
Jason
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Here’s why: If you’re a guardsman or reservist, and your duties took you on an overnight stay 100 miles or more away from home, you can now deduct most unreimbursed expenses related to transportation, meals, and lodging, beginning with tax year 2003. You can't go hog wild, though--you can only deduct up to what the federal government pays its own employees for travel expenses. You can also deduct 36 cents per mile for use of your POV on these trips. (Details are here. Scroll down to page 33.)
Best of all, these are "above the line" deductions. Which means that you can claim them even if you don't otherwise itemize deductions. You don't have to fill out a schedule C, and you still get the benefit of your full standard deduction.
But you won't find these deductions itemized on a form 1040, though, like an IRA contribution or a teachers' expense deduction. Noooooo! nothing can be easy for us reserve component soldiers, can it???
I guess the NEA has more pull with the suits at the IRS than us grunts.
So instead, the bastards are going to make you jump through a couple of hoops.
Here's how to claim the deductions. Follow along carefully.
1. When you put together your returns, you download IRS form 2106 (Employee Business Expense), or a Form 2106 EZ (Unreimbursed Employee Business Expenses.)
2. Use one of those two forms to figure the deduction amount.
3. Fill out an IRS Form 1040. (Don't us a 1040 EZ or you'll miss the deduction!) Write the letters "RC" and the deduction amount on the dotted line. NOT in the box. The dotted line.
4. Add this figure to all your other deductions specifically itemized in lines 23-32.
5. Write the resulting sum into the box on 33.
6. Send this link to every guardsman or reserve soldier or family member in your distribution list, so I can rule the world so they can claim the deduction, too.
Stay tuned--more finance and tax tips on the way!
Splash, out
Jason
