What is the difference between taxable per diem and nontaxable per diem?

Per diem reimbursed to a crewmember from their company can be either taxable per diem or nontaxable per diem.  Here is how they are different:

Taxable per diem

  • Shows as part of salary in Box 1 of a W-2
  • Is not considered a reimbursement by the IRS.  It is a wage.
  • Is paid during day-trips when a trip does not have a legit rest period (i.e. layover)
  • Does not affect a per diem calculation.
  • Does not get entered on IRS Form 2106.

Non-taxable per diem

  • Shows in one of the following places: (W-2 Box 12 with Code L, W-2 Box 14 (probably says nontaxable per diem next to it), or last paycheck stub of the tax year)
  • It is a reimbursement
  • It should be less than the meal allowance (per diem calculation)
  • Accumulates on trips with layovers (rest periods)
  • Offsets the per diem calculation
  • Gets entered on IRS Form 2106

What's all this about?

EZPerDiem helps pilots and flight attendants with their flight crew taxes by:

  • Calculating your per diem deduction using two methods!
  • Helping you find flight crew tax deductions you are not aware of!
  • Organizing all the deductions on a Final Tax Report!
  • Making it easy for you to give the report to an account or enter into TurboTax!

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