Skylane
Level 12
Level 12

Congrats to your client.  Not easy to get into an airline cadet program.  @BobKamman  said "What if he decides to work for another airline ..."    Short answer is the contract the cadet signed.  Cadet programs generally come with a 2 year employment commitment IF the cadet successfully completes the program. and is offered a job. (fwiw, they're entry level regional flying jobs at relatively low pay usually requiring relocation... you don't get to pick your duty station).

Cadet programs have been around for a few of decades. Acceptance into the program is competitive, requires testing and several rounds of interview as well as minimum pilot ratings, hours and, of course, a thorough background check.... 

When an airline does accept a cadet into the program, they have a pretty solid idea about the cadets commitment, determination, and motivation.  The programs have a very high success rate. Some of the money the programs pay the cadet is defray  a portion of the advanced pilot certifications and ratings. An IFR rating can cost >8K.  and ATP rating >5K. ..  

As for the question of 1099-Misc or 1099-NEC,  I'd  defer to the airline legal departments to have researched the appropriate classification. Yes, I'd put it on a schedule C subject to SE. There may be some reasonable expenses incurred but you'd have to read the Cadet contract. The cost of ratings or other training is not deductible. 

 

 

If at first you don’t succeed…..find a workaround
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