✈️ Final Approach: 6 Smart Tax Moves Pilots Should Make Before April 15th

Tax season hits like a surprise holding pattern—and if you’re like most pilots, it probably wasn’t at the top of your to-do list. Between bidding schedules, simulator sessions, and layovers, it’s easy to push paperwork aside.

But with the April 15th deadline on final approach, there’s still time to take a few critical steps that could save you money, reduce stress, and even set you up better for next year.

Here are six things you can do today to get your taxes on glidepath:

1. Gather All Income Sources

Pilots often wear more than one hat—flying trips, instructing on the side, renting out property, or investing.

✅ Action Item: Make sure you’ve collected all your income documents:

• W-2 from your airline

• 1099s from side hustles (e.g. flight instruction, Airbnb)

• Investment income (1099-INT, 1099-DIV, etc.)

• Rental property income and expenses

Don’t forget per diem reimbursements—these can be deductible depending on your employment structure and how much was paid.

2. Track Deductions Specific to Pilots

There are several aviation-specific deductions that could reduce your tax bill, especially if you're classified as an independent contractor (common for corporate or contract pilots).

✅ Action Item: Review and document any of the following:

• Flight bag, headset, or uniform purchases

• Travel expenses not reimbursed

• Training costs (if they maintain or improve current qualifications—not for new ratings)

• Subscription fees (like ForeFlight, Jeppesen)

If you didn’t track these during the year, grab your credit card statements and do a quick scan. It’s tedious, but even $1,000 in deductions can save you hundreds in taxes.

3. Max Out IRA Contributions

Even if your income is mostly W-2, you can still contribute to an IRA until April 15th for the previous tax year.

✅ Action Item: Contribute up to $6,500 ($7,500 if over 50) to a Traditional or Roth IRA, depending on your income and eligibility.
A deductible IRA contribution can lower your taxable income and might even bump you into a lower bracket.

4. Consider a SEP IRA or Solo 401(k) If You Side Hustle

Earned more than a few grand doing contract flying, instructing, or consulting? You may be eligible to set up a SEP IRA or Solo 401(k) and stash away thousands—potentially even after April 15th.

✅ Action Item: If you’re self-employed in any capacity, talk to your tax pro or open a SEP IRA account. You can contribute up to 25% of net self-employment income (max $66,000 for 2023). Some plans allow contributions up to the extended filing deadline in October.

5. File for an Extension—But Pay What You Owe

Not ready? No shame. But don’t ignore it. Filing an extension gives you until October 15th to submit paperwork—but not to pay taxes.

✅ Action Item: File Form 4868 online and estimate your tax bill now. Pay what you think you owe to avoid interest and penalties.

6. Set Up a Better System for Next Year

If this year's scramble feels familiar, it's time to fix it before next tax season rolls around.

✅ Action Item:

• Use a spreadsheet or expense-tracking app (like QuickBooks or Mint)

• Create folders (digital or paper) for income, deductions, and receipts

• Schedule a mid-year check-in with a CPA, especially if your income fluctuates

You fly with a checklist—your finances deserve the same.

Final Thoughts

As pilots, we’re used to high standards, tight tolerances, and detailed planning. Taxes aren’t any different. With a few focused hours now, you can land this tax season smoothly and be better prepared for the next.

And hey—if you saved money with one of these tips, put it to work by funding a new stream of income outside the cockpit. That’s what Financial Flight Path is all about.