Railroad Mechanic

[photoman]

I have someone that called and said they are a mechanic for the railroad. They must ride the train and are out of town on a normal basis. I have not done one of these returns.

It looks like they would possibly have some per diem. Can anyone give me an idea of what they can claim and or where to go look for the information.

Ron

[solomon]

Ostensibly the train rides are a no additional cost benefit as it were. Publication 463 might get you started. Provide more details for a better answer. Out of town on a regular basis is too vague.

[photoman]

Need More Information

Thanks for the advice and I called my client back and ask them to come in and discuss the details of the railroad job. As you say I gave very little information and it would be difficult to provide useful information to me. If the client shows this week I will get this information and post. I went on my drake forum and most of the information was from old post and it looks like informaton is all over the place from a to z on how to handle.
I will start with the irs pub you mentioned. I will try harder to provide better input next time.

Thanks,Ron

[Gary2]

If you've never seen one, be prepared for a W-2 with both Social Security and Medicare boxes (3 through 6) empty (assuming the client's situation qualifies him for Railroad Retirement Board benefits instead).

[DaveO]

If he is subject to the DOT hours of service rules they may be able to use the transportation meal allowance. The key question is if they normally travel between different cost zones. A mechanic or gandy dancer will usually qualify because they go where ever they are needed. Some brakemen and engineers may not because they travel the same in-state route every run. You need to ask some more questions and don't be pushed into taking more deductions than you feel are correct. They have probably talked to their co-workers and will have all sorts of ideas about what they can deduct.

[photoman]

Response

Thanks and yes this person has talked to his co- employee that worked 30 years and seems to have all of the answers as to what I need to do. 'The other person says they have someone trained to handle this type of return. I told him to use them this year and bring the return to me next year and I would take a look at. As per your recommendation I will not work the return if not comfortable about the deductions.

Much Appreciated to all

Ron

[Larmil]

Thanks and yes this person has talked to his co- employee that worked 30 years and seems to have all of the answers as to what I need to do. 'The other person says they have someone trained to handle this type of return. I told him to use them this year and bring the return to me next year and I would take a look at. As per your recommendation I will not work the return if not comfortable about the deductions.

Much Appreciated to all

Ron

Ron, there are some special rules for railroad employees and retirees.
Any payment made to Railroad Retirement Board is exempt from state income tax. This includes unemployment compensation paid to employees.