Flight Attendant - W2 Code L

[Hoosier]

New client is a flight attendant for SW Airlines. W2 shows an amount in Box 12 Code L. Code L is Substantiated employee business expense reimbursements. My software moves this amount over to Line 7 of the Form 2106. If no expenses are reported on Form 2106 the amount is then included on Line 7 of the Form 1040 as Excess Reimbursement. The client did not turn in any expense reports or report any expenses to the employer. Thus, it appears SW is paying a per diem rate to the client. The client is frequently away from home overnight. The question is this: What is the best method for a flight attendant to track un-reimbursed employee expenses? Should the employee track all actual expenses or is it generally better to claim per diem amounts on the Form 2106 to offset the Line 7 re-imbursement? In a most simple scenario, is it reasonable to simply claim the same amount of reimbursement as expense to force the Form 2106 to show a net of zero? Since the airline is paying a per diem re-imbursement, it would seem logical that the employee could claim the same amount as per diem expense. Appreciate any suggestions, advice, etc. By the way, great forum - a lot of knowledge and sound professional advice here.

[taxea]

is she out-of-pocket for any employee related expenses after the bx L amount is subtracted? If not she has no expenses to claim

[MRPLOW]

[QUOTE=Hoosier;178863]New client is a flight attendant for SW Airlines. W2 shows an amount in Box 12 Code L. Code L is Substantiated employee business expense reimbursements. My software moves this amount over to Line 7 of the Form 2106. If no expenses are reported on Form 2106 the amount is then included on Line 7 of the Form 1040 as Excess Reimbursement. The client did not turn in any expense reports or report any expenses to the employer. Thus, it appears SW is paying a per diem rate to the client. The client is frequently away from home overnight. The question is this: What is the best method for a flight attendant to track un-reimbursed employee expenses? Should the employee track all actual expenses or is it generally better to claim per diem amounts on the Form 2106 to offset the Line 7 re-imbursement? In a most simple scenario, is it reasonable to simply claim the same amount of reimbursement as expense to force the Form 2106 to show a net of zero? Since the airline is paying a per diem re-imbursement, it would seem logical that the employee could claim the same amount as per diem expense. Appreciate any suggestions, advice, etc. By the way, great forum - a lot of knowledge and sound rofessional advice here.[/QUOTE

I think you should decline to do the return.
You seem to be in way over your head.

[Kram BergGold]

travel expenses

Your client needs to have records for her transportation and lodging costs. As a transportation worker, she can deduct 80% of the meals per diem. What "I don't know is if she has to use the transportation workers per diem (page 8-1 in TTB or if she can use the regular per diem on pages 8-2 and 8-3. You can't just call it a wash.

[TAXNJ]

In addition

In addition to what KRAM replies, reference (not limited to)

http://www.aviationtaxglossary.com/non_taxable_per_diem/