Originally Posted by
akkalakakalakka
For anyone who's been using travel benefits for a while, how does the "imputed income" work? I'm trying to fly down my niece on buddy passes and my sister who is a registered companion, and the thing says 3,080 dollars of imputed income, is that added up and taxed at the end of the year as if it were actual income? If so, does anybody have horror stories of having to pay ludicrous amounts of money to the IRS during tax return season and regret their decision to use these passes?
No, they do it a pay period or two after the travel has been completed. So, they will add 3,080 to your check, tax it, then deduct the 3,080. So you're left with being taxed as if you earned an additional 3,080.