Line 24 1040

[BOB W]

In all my classes for CPE nothing was mentioned about this line.????? It has been around for a long time but never saw it.

[Maribeth]

I have used this line before but it has been a few years. Would have to refresh my memory as to when to use it.

[RitaB]

Yeah, had a guy going to drill weekends in the National Guard

I stumbled upon it in the instructions to Form 2106. Had no idea. Also gets a brief nod on p. 30 of Publication 17.

[Possi]

yep

I use it a lot, here in VA Beach. I get lots of military from all over Hampton Roads, and I love that "above the line" deduction for reservists.

[BOB W]

I just checked, it started in 2004.

[FEDUKE404]

Fine print caveat

I use it a lot, here in VA Beach. I get lots of military from all over Hampton Roads, and I love that "above the line" deduction for reservists.

....so long as the location of the home of those reservists exceeds the 100 miles distance requirement separation between home and the reserve station.

Otherwise, you are stuck with plain vanilla Form 2106 and its usual limitations.

FE

[BOB W]

It looks like only "away from home" expenses deals with the 100 mile condition. The other type expenses should qualify regardless of the distance...???


"If you qualify, complete Form 2106 and include the part of the line 10 amount attributable to the expenses for travel more than 100 miles away from home in connection with your performance of services as a member of the reserves on Form 1040, line 24, and attach Form 2106 to your return. The amount of expenses you can deduct on Form 1040, line 24, is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses), plus any parking fees, ferry fees, and tolls. These reserve-related travel expenses are deductible whether or not you itemize deductions. See Pub. 463 for additional details on how to report these expenses."

[David1980]

It looks like only "away from home" expenses deals with the 100 mile condition. The other type expenses should qualify regardless of the distance...???


"If you qualify, complete Form 2106 and include the part of the line 10 amount attributable to the expenses for travel more than 100 miles away from home in connection with your performance of services as a member of the reserves on Form 1040, line 24, and attach Form 2106 to your return. The amount of expenses you can deduct on Form 1040, line 24, is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses), plus any parking fees, ferry fees, and tolls. These reserve-related travel expenses are deductible whether or not you itemize deductions. See Pub. 463 for additional details on how to report these expenses."

Well, we know that the general rule for employee business expenses is they go on Schedule A subject to 2%. The quoted text gives us an exception to that - the part of the line 10 amount attributable to the expenses for travel more than 100 miles away ... goes on line 24 of the 1040. The amount is limited to the per diem rate, standard mileage rate, any parking or ferry or tolls.

What about the other expenses? It said nothing about the other expenses. So we are still at the general rule, Schedule A subject to 2%. No?

[BOB W]

Dave, you make a good point. TTB 14-10 seems to indicate you are correct. Line 24 is only for travel expenses and all other expenses are reported on A Misc subject to 2% haircut. oopps.

[FEDUKE404]

Not everything to Line 24

Dave, you make a good point. TTB 14-10 seems to indicate you are correct. Line 24 is only for travel expenses and all other expenses are reported on A Misc subject to 2% haircut. oopps.

Since the topic of this thread is Line 24: So far as I read things, moving possible deductions from Form 2106 (generally goes away due to the 2% floor) to Line 24 is essentially a method for qualifying Reservists to be able to deduct some portion of their (excessive, as defined by the IRS) travel and associated expenses off the top. Nothing much has changed re all of the other expenses a Reservist might encounter, to include annual (two-week?) duty where the government reimbursement process differs.

What you need to filter out is use of Line 24 for any Reservist who lives in the same general area as his monthly duty station. Those folks are stuck entirely with Form 2106.

Apologies if my memory is hazy on this topic - it's been several years since I had a client with such expenses. This special treatment may even have been in place for some states (National Guard only??) before the IRS jumped on the similar bandwagon?

FE