US Tax Question
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Join Date: Sep 2006
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US Tax Question
Fellow American Taxpayers-
I am just finishing my first year at CX and have a question regarding allowances. Do you claim them on your tax forms? I traditionally itemize my overnights away from base for meals and incidentals based on the US State Department and GSA per diem rates. In my last job, I deducted the total amount minus the per diem (allowances) I received. I have no idea how much I have received in cash allowances in 2007. What are other Americans doing?
Thanks in advance for your replies.
- Scratch
I am just finishing my first year at CX and have a question regarding allowances. Do you claim them on your tax forms? I traditionally itemize my overnights away from base for meals and incidentals based on the US State Department and GSA per diem rates. In my last job, I deducted the total amount minus the per diem (allowances) I received. I have no idea how much I have received in cash allowances in 2007. What are other Americans doing?
Thanks in advance for your replies.
- Scratch
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it depends if you are HKG based and a bonefide overseas resident or living in the USA. Claim what you get subtracted from what the you are entitled to from the US state dept site you mentioned. Mine used to work out to about 4000 US$ advantage per year.
next time you fly just write down the allowance money you received on your roster. save those twelve rosters and record keeping is a breeze. ie days away from home etc. Vol 1 also list what allowances you get.
That tax advice is pro bono, you want more info you PM me and we can talk
next time you fly just write down the allowance money you received on your roster. save those twelve rosters and record keeping is a breeze. ie days away from home etc. Vol 1 also list what allowances you get.
That tax advice is pro bono, you want more info you PM me and we can talk
Join Date: Jun 2006
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I will see your question and raise it one!
What about the fact that the only thing withheld is the federal income tax? What about social security? My tax guy got done with all my stuff, and called the IRS (anonymously). They say that's fine, but it's not their department.
What does this imply for our social security benefits when we retire? That we only get from them what we've paid up to now? I guess that's okay, since I could no doubt do better by investing it myself, but I'd sure hate to get caught down the road and owe a bunch to social security.
BTW, my tax guy went through the issue of per diem. I gave him a few typical payments that we get (roughly 100 bucks for 24h), and he said that the difference between the allowed me&i vs what we get paid is basically negligible. Add the fact that it's all in cash with no real written record and to me it seems an invitation for auditing. But we're both pretty conservative with all that.
What about the fact that the only thing withheld is the federal income tax? What about social security? My tax guy got done with all my stuff, and called the IRS (anonymously). They say that's fine, but it's not their department.
What does this imply for our social security benefits when we retire? That we only get from them what we've paid up to now? I guess that's okay, since I could no doubt do better by investing it myself, but I'd sure hate to get caught down the road and owe a bunch to social security.
BTW, my tax guy went through the issue of per diem. I gave him a few typical payments that we get (roughly 100 bucks for 24h), and he said that the difference between the allowed me&i vs what we get paid is basically negligible. Add the fact that it's all in cash with no real written record and to me it seems an invitation for auditing. But we're both pretty conservative with all that.
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In the US overnight per diem is tax free... I thought. Do we even have to declare it?
Also, my people told me that we will no longer be contributing to social security. Fine by me. Less money to the govt.
Also, my people told me that we will no longer be contributing to social security. Fine by me. Less money to the govt.
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US overnights different from overseas
You are correct that Cathay allowances exceed the GSA rates in the states, but using the Department of State figures for overseas layovers (which is legal), there is a tax deduction to be had. For exmple, we get a little under $100US for a 24 hour period in HKG, but the DoS rate in HKG for meals and incidentals is $134 for 2007 (over $140 for 2008).
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I hadn't thought about the difference between U.S. domestic and international layovers. Good point. However, the difference would have to be pretty large before I would do anything about it. I agree with Junior Man, make your tax return as boring as possible.
