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High Finances: Tips From The Tax Rulebook

Monday, September 27, 2021 at 08:34 PM ET

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Jason Depew says taking the standard deduction is a good move for most of us. Courtesy Jason Depew

Key Takeaways:

Tax credits directly reduce your overall tax bill, making them generally more beneficial than deductions, which only lower your taxable income.
Taxpayers must choose between taking a standard deduction or itemizing individual deductions, with itemizing only being advantageous if your total eligible deductions exceed the higher standard deduction amount.
Understanding and utilizing available tax rules, such as credits and deductions, is crucial for pilots to legally reduce their tax burden, and seeking professional tax advice is recommended.

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There are plenty of tax rules that a pilot can use to reduce their overall tax bill. But it helps greatly if you know the rulebook.

Jason Depew flies as a captain for a major U.S. airline. He is also an Air Force reservist and has flown more than 300 combat missions over Afghanistan and other garden spots. Based in Tampa, Florida, he instructs in the Icon A5 and anything else he can get his hands on. His writing is focused on personal finance for pilots with the goal to help all types of aviators enjoy great careers, sometimes in spite of themselves. You can send Jason questions at editorial@flying.media.