Frequently Asked Questions About the Per Diem Deduction

Why do I need to calculate a per diem deduction?

For every day that you travel, the IRS allows you to take a deduction on your tax return for meals. Additionally, your airline pays you a per diem to cover the cost of meals. To properly reconcile your meal allowance/per diem deduction you must subtract the per diem you are paid from the meal allowance you are allowed. The result is your allowable tax deduction. This must all be reported on Form 2106 of your 1040. This can be a complicated calculation and one that is easily and often done incorrectly. Using PerDiemMax will insure that your required calculations are IRS compliant and that you get the maximum deduction allowed.

How much will PerDiemMax per diem calculator save me in taxes?

The amount will vary depending upon the number of overnights you have and in which cities you stay overnight. For domestic flyers, the savings in your taxes will range from as little as $200-$300 up to well over $1,000. For international flyers, savings generally range from $700-$800 up to $2,000 in some cases. These are real dollars you will save by using PerDiemMax.

Why should I use PerDiemMax instead of letting my Tax Preparer calculate my deduction?

The majority of Professional Tax Preparers do not use the per diem deduction because of its complexity and the time involved in updating per diem rates for each city around the world on a monthly basis. PerDiemMax flight crew per diem calculator does this for you. Many airline employees use PerDiemMax and then provide their professional tax preparer the year-end PerDiemMax Report. This report gives your professional tax preparer everything he needs to easily enter your per diem deduction on your tax return. We are happy to answer any questions your professional tax preparer might have.

Will PerDiemMax work for me if I prepare my own taxes?

PerDiemMax is especially helpful for those airline employees who prepare their own taxes. PerDiemMax helps in two ways. First, it ensures that you get the biggest deduction allowed under the tax code for your per diem deduction. Second, it ensures that your per diem deduction is accurate and compliant with federal law. The more accurate your tax return, the less likely you are to get audited. If you are audited, your PerDiemMax Annual Report is guaranteed to substantiate your per diem deduction to the IRS. The year-end PerDiemMax Annual Report contains easy to follow instructions on how to use the per diem calculation to properly prepare your tax return.

Is there a difference in the per diem deduction if I fly international vs. domestic?

PerDiemMax is guaranteed to lower your tax liability whether you fly international or domestic. However, international flyers will generally get a larger per diem deduction because the IRS allows a higher meal allowance for international cities.

Does it matter which airline or air charter company I fly for when using PerDiemMax?

Employees from any airline or air charter company who are paid a per diem will benefit from using PerDiemMax. There are small variances in the way different companies report your per diem expenses. If you prepare your own taxes, your PerDiemMax Annual Report will explain in simple language how to use the information to prepare your return. Of course, if you use a Professional Tax Preparer just provide them the Annual Report. They will easily be able to prepare your return with the data included in the report.

Have other questions?

Feel free to contact us with any questions that aren't covered above!