Tax Return And Deduction Checklist For Pilot
Tax Return And Deduction Checklist For Pilot
Flying thousands of miles in the air comes with its own set of responsibilities.
But when it comes to tax time, even pilots have to touch down and deal with the necessary paperwork.
If you’re a pilot, there are specific tax deductions and benefits you can claim that are directly related to your profession.
By being aware of these deductions, you can maximise your refund and ensure you’re not missing out on any opportunities.
In this blog, we’ll cover a checklist for your tax return, focusing on what pilots can claim as deductions, what they can’t claim, and the necessary records you need to keep.
Understanding Your Income Statement
Before diving into deductions, ensure you have your income statement (formerly known as a payment summary).
Your employer will lodge this directly with the ATO, containing details of your:
- Base salary
- Allowances
- Bonuses
- Other compensations
Essential Deduction Principles
Two fundamental rules apply when claiming deductions:
- You must have incurred the expense yourself
- You must maintain proper documentation (receipts, invoices)
What Deductions Can Pilots Claim?
One of the benefits of being a pilot is that you’re entitled to claim a wide range of deductions. These deductions relate to expenses incurred during the course of your work and can help reduce your taxable income.
However, remember that to claim these, the expenses must have been paid by you (not reimbursed by your employer) and you need to keep proper documentation, such as receipts or invoices.
Here’s a checklist of common deductions for pilots:
| Deduction Category | Details |
|---|---|
| Work-related Clothing | Costs of buying, repairing, and cleaning uniforms that are specific to your job. |
| Vehicle Expenses | Car expenses, including fuel, parking, and tolls, if you travel between different work locations. |
| Travel Expenses | Expenses for accommodation, meals, and incidentals when travelling for work and staying overnight. |
| Moisturisers and Conditioners | Costs of products specifically used to counter the dry conditions inside aircraft cabins. |
| Self-Education Expenses | Costs of attending courses, training, or seminars that directly relate to your job as a pilot. |
| Licence Renewal | Costs of renewing your pilot’s licence and other work-related licences (but not the initial cost of obtaining them). |
| Union and Association Fees | Membership fees for any work-related unions or professional organisations. |
| Insurance | Premiums for salary guarantee and loss of licence insurance (when the payment replaces income). |
| Phone and Internet Expenses | Work-related phone and internet usage on personal devices. |
| Medical Examinations | Costs of medical exams needed for renewing your pilot’s licence. |
| Luggage and Bags | Expenses for purchasing work-specific luggage like suitcases, trolleys, or navigation bags. |
| Visas | Fees for securing visas required for work-related international travel. |
What Pilots Can't Claim?
While the list of claimable deductions is extensive, there are still some expenses that aren’t deductible.
Here’s a quick overview of what pilots cannot claim:
- Regular Clothing: Any regular clothing that could be worn outside of work (e.g., suits, casual wear, or jeans), even if you bought it specifically for work, is not deductible.
- Personal Grooming: Haircuts, makeup, or any grooming costs are non-deductible, even if required by your employer.
- Driver’s Licence: Costs associated with renewing your driver’s licence, even if it’s required for work, cannot be claimed.
- Meals During Normal Work Hours: Meals or snacks consumed during a regular workday are not deductible, even if your employer provides an allowance for them.
- Fines: Any fines incurred during your workday, including those issued by the Civil Aviation Safety Authority (CASA), are non-deductible.
Record Keeping Requirements
Maintain digital or physical records showing:
- Supplier name
- Expense amount
- Nature of purchase
- Payment date
- Document date
Pro Tip: Receipts for expenses under $10 are not required (maximum cumulative total: $200).
Common Mistakes To Avoid
- Claiming regular clothing as a uniform
- Deducting initial licensing costs
- Including personal grooming expenses
- Claiming home-to-work travel
Ready To Maximise Your Tax Refund?
Filing taxes as a pilot can seem overwhelming, but with the right support, it doesn’t have to be. At KPG Taxation, we specialise in helping pilots claim all eligible deductions and maximise their tax refunds. Let our tax accountant team guide you through the process, ensuring no detail is overlooked. Contact us today and experience stress-free tax filing that works for you!
- Categories
- Tax Deductions
Focus On Growing Your Business, Leave The Accounting On Us!
- Income Tax : File your taxes & get the best claims & returns.
- Accountancy : Hire expert accountants to manage your transactions.
- Bookkeeping : Let us handle your record books and expense reports.
- Business Advisory : From company set-up to payroll, we handle it all.