Tax Season

[ESCAT]

Hey Everybody,

As tax season approaches, I thought it might be a good idea for everyone to share their hints for maximizing tax returns. Could be a good discussion to ensure everyone gets a few more dollars back this year.

Also one question for anyone in the know: Is there anyway the cost of repaying a bond could be considered tax deductible?

ESCAT

[Kelowna Pilot]

You're asking pilots for tax advice?

How's the old saying go: Pilots invest until they nothing left

[Northern Skies]

I think I need a bit more than "advice".... I haven't filed in THREE YEARS.

[SkyWolfe]

Ah yes, and in six months us students can get that special audit that is "random"....

Wolfie

[Northern Skies]

haha... I think they're really gonna "random" my ass too. I can't wait to see the look on their face when I heave a huge garbage bag full of reciepts onto the table.

[Grey_Wolf]

Random ....

Here's Hoping on 4 years in a row

[ybp]

My advice....get an accountant to do it!

It will cost more money but you will probably get more back in the end. Last year I only had one T4 so I figured I would do it myself. By my calculations I was getting almost $600 back. When I rechecked my calculations I was only getting $400 back! So I said "Screw that" and took it to an accountant.....I got $2600 back!

It was well worth the $250 bucks. And then I got the "random" audit so I took all the crap back to him and HE dealt with it all.

Definitely worth the money!

[Captain X]

Screw the accountant unless you have some complicated return to file..... Quick Tax!!!

[Rowdy]

I get audited EVERY year... rotten bastards...

It's not random.. if you get back more than 50 bucks.. they'll tag you

[RatherBeFlying]

If you haven't field for a few years, get a good accountant, give him or her all your bank records and file. Penalties and interest on unfiled returns are brutal.

There is a certain legal firm that advertises themselves as tax lawyers. I used them, had to hire an accountant anyway and got dinged extra penalties for the time the lawyers hung on to my records.

The legal fees were more than the accounting fees.

If you're involved in criminal activities, you need the lawyers; otherwise just come clean and make very sure you declare everything.

[Northern Skies]

Penalties and interest on unfiled returns are brutal.

That's only if you owe them, right? What if they owe you a bit?

[Dust Devil]

If they owe you, you are under no obligation to file

[CLguy]

I have to agree with YBP! Get an accountant to do it. I have been using one for more than 10 years and I always get way more back than I thought and have never been audited!!

[CYXDSTUD]

Not sure if any of you guys have done this but for those of you collecting per diems is there a certain amount that we as pilots are supposed to get being in the transportation industry for a food allowance according to revenue Canada. (I'm thinking in relation to truck drivers). An amount in the order of 45-55 dollars a day when on duty. If mine or your company pays less than that can we claim the difference against our income for all of those days worked. For me going back a couple of years this is almost $6000.00. Also I get dinged N.W.T. and Nunavut Tax on my pay stubs for working up north but am a resident of Alberta. Can I get that back? Any help on that would be appreciated. Otherwise I guess I could be a little more proactive and call revenue canada myself or get an accountant. Seems to me I might be dreaming cause a lot more of us would take advantage of this.

[Grey_Wolf]

Not sure if any of you guys have done this but for those of you collecting per diems is there a certain amount that we as pilots are supposed to get being in the transportation industry for a food allowance according to revenue Canada. (I'm thinking in relation to truck drivers). An amount in the order of 45-55 dollars a day when on duty. If mine or your company pays less than that can we claim the difference against our income for all of those days worked. For me going back a couple of years this is almost $6000.00. Also I get dinged N.W.T. and Nunavut Tax on my pay stubs for working up north but am a resident of Alberta. Can I get that back? Any help on that would be appreciated. Otherwise I guess I could be a little more proactive and call revenue canada myself or get an accountant. Seems to me I might be dreaming cause a lot more of us would take advantage of this.

Yup check out the TL2 Form and the associated guide T4044

[tsgas]

Move to the Cayman Islands and enjoy the great T & A and no income tax

[Captain X]

Not sure if any of you guys have done this but for those of you collecting per diems is there a certain amount that we as pilots are supposed to get being in the transportation industry for a food allowance according to revenue Canada. (I'm thinking in relation to truck drivers). An amount in the order of 45-55 dollars a day when on duty. If mine or your company pays less than that can we claim the difference against our income for all of those days worked. For me going back a couple of years this is almost $6000.00. Also I get dinged N.W.T. and Nunavut Tax on my pay stubs for working up north but am a resident of Alberta. Can I get that back? Any help on that would be appreciated. Otherwise I guess I could be a little more proactive and call revenue canada myself or get an accountant. Seems to me I might be dreaming cause a lot more of us would take advantage of this.

I assume when the company gives you a credit card to use to buy your food, hotels ect... obviously you cannot claim for it on your taxes, seeing that you are not spending any of your money?

[Northern Skies]

I assume when the company gives you a credit card to use to buy your food, hotels ect... obviously you cannot claim for it on your taxes, seeing that you are not spending any of your money?

No, but it's ok because you weren't taxed on it in the first place. Better off that way, less of a headache!

[CYXDSTUD]

My company gives us cash every week for groceries. What my question was is there a standard amount we should be getting for three square meals a day. Whatever that number may be, if we are not getting that amount can I get that difference put against my income. Thanks for the reply on the TL2 form. Anyone have an idea on the N.W.T. Tax and Nunavut tax. Am I able to get that back?

[Carrier]

Years ago there was a federal government approved tax free allowance per meal for employees away on duty travel. This was what you claimed and it was non-taxable. Receipts were not required if you claimed this standard allowance. It was quite generous, adding up to nearly $40 per day over 20 years ago. No need to eat at greasy spoons and if one ate smartly or like a starving student or first job pilot then a little something could be saved.
There must be an updated version available today. That is what you should use. CRA staff can hardly complain if you use the same figures that they use for themselves! Perhaps someone who has access to the current federal meal allowances for duty travel would post the figures on here. While at it, please also post some of the government rates from that big book for hotels.

[C-GGGQ]

My way is much more simple, i just never make enough money for them to take taxes out. I get everything back every year made probably a whoping 4K last year

[North Shore]

Anyone have an idea on the N.W.T. Tax and Nunavut tax. Am I able to get that back?

I think that you might have an issue with your company... if you've made it clear that you are a resident of Alberta, then why are they deducting tax from another province?? generally, you pay tax in the province in which you normally reside (ie, where is your home, driver's licence, medical etc..)

[Cadismack]

Could someone explain the 'random audit' that appears to be an issue with pilots? Is it from training deductions or per-diems and "other" income?

[GForce]

Having always filed tax returns, including my two years at flight college, I was kind of surprised when Revenue Canada audited me regarding some flight training. It was during my third year on floats, I received a letter asking me to prove that my multi-ifr training, that I completed two years previous, was for the intention of becoming a commercial pilot (even after attending college for a Commercial Pilot's License!). I suggested they check my last three years of returns which showed that I was flying commercially for an air operator up north. That, being too easy, wasn't good enough for them. I spent close to a half-day on the telephone, with my better-half back home, getting all of my documents together with dozens of photocopies to send off. She even had to travel to the airport where I did my multi-ifr to get an original copy of a T11B? (or something?) notarized from the school to declare that the training was for commercial flying purposes. So even if you do everything by the book and file every year and include everything that you are supposed to, doesn't mean that the person on the other end is even going to be able to read it all because their head is stuck so far up their ass!

[Phlyer]

Get your payroll person to check the box for 'other expenses' on your T4.

This opens up a lot of write off possibilities:
-cell phone (does your work call you on it?)
-internet connection (any work emails and/or online training?)
-computer (see above)
-uniforms you have to pay for
-headsets
Definitely get an accountant to do it for you - it ends up being way cheaper with the extra money you get, as well as the protection if you get audited. Ask any professional (aviation doctor?) to recommend one.
If you overnight you qualify for the food allowance.

UND SAVE YOOR MOONY!