Friday, August 21, 2009

FIREFIGHTER MEALS

Over the years I have done 1040s for many, many police officers, fire fighters, and other municipal service employees. I am often asked about the meal deduction for fire fighters.
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Here is the word (with documentation) –
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It is common in fire stations throughout the US for firefighters to operate a “common mess” because of the long shifts routinely worked by firefighters and the requirement that the firefighters remain in the station house unless called away on official business. Under a common mess arrangement, the firefighters contribute to a fund from which the food for their meals is purchased.
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Payments to an organized mess that are required of a fireman by his immediate superiors at the fire station, regardless of whether he leaves his assigned duty station during the normal 24-hour shift and actually participates in the mess, are expenses that are directly and proximately related to the active conduct of the fireman’s trade or business and are deductible under IRC Section 162(a). [Robert E. Cooper, 67 T.C. 870, Nonacq.,1978–1 C.B. 2; Richard R. Sibla, 68 T.C. 422, Nonacq., 1978-1 C.B. 3.]
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The key point here is that the payments must be required as a condition of employment. In T.C. Summary Opinion 2004-63 the court upheld that if the firefighters’ payments into a common meal fund are voluntary (not a condition of employment), the expenses constitute personal expenses and are not deductible.
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As with any other employee business expense the deduction is first reported on Form 2106 (or Form 2106-EZ) and carried over to Schedule A as a miscellaneous deduction subject to the 2% of AGI exclusion.
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And as is the case with any meals claimed as an employee business expense you only get a tax benefit (tax deduction) for 50% of the total meals.
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We are talking about a potentially sizeable deduction here. Let us say that there are ninety (90) 24-hour shifts in a year and each fire fighter is required to contribute $20.00 per shift to the common mess fund. That is a total of $1,800 – or a tax deduction of $900. Added to other required employee business expenses of fire fighters, such as uniform cost and maintenance, equipment purchases, union dues, education for advancement, etc, it is not difficult exceed 2% of AGI.
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If you are a firefighter and you participate in a common mess check to see if your payments are “voluntary” or “required”. If they are indeed “voluntary” check with your union and see what can be done to make the payments “required” so they will be legitimately deductible.
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TTFN

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