ATP CTP taxes
03-20-2018 | 03:45 PM
#1
Thread Starter
On Reserve
Joined: Sep 2017
Posts: 14
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From: A320 CA LH
ATP CTP taxes
Long time listener, first time caller.
Just a word of caution to those who need to do the ATP CTP through rjet before you come. They will try to tell you that it is tax deductible for "educational" expense. That is complete BS and many of those who did their taxes this year owed a lot of money because it is reported as 1099 income by the company. This confused even those with CPA friends as to why it was reported this way. It took about all my refund and I ended up owing about 350$ after it was entered into my taxes. Just a word of caution when they sell you that "you MAY be able to claim this as an educational expense.." it is complete BS and you will put you on the hook for it..
I am in NO means a tax person so please don't jump on me for anything.. just sharing my experience and passing along info.
Just a word of caution to those who need to do the ATP CTP through rjet before you come. They will try to tell you that it is tax deductible for "educational" expense. That is complete BS and many of those who did their taxes this year owed a lot of money because it is reported as 1099 income by the company. This confused even those with CPA friends as to why it was reported this way. It took about all my refund and I ended up owing about 350$ after it was entered into my taxes. Just a word of caution when they sell you that "you MAY be able to claim this as an educational expense.." it is complete BS and you will put you on the hook for it..
I am in NO means a tax person so please don't jump on me for anything.. just sharing my experience and passing along info.
03-20-2018 | 04:58 PM
#3
On Reserve
Joined: Jan 2018
Posts: 115
Likes: 4
My CPA would disagree and would argue that it is tax deductible. This might all be different now under the new tax law though. This is not specific to Republic though, every regional I’ve talked to reports the ATP CTP as taxable as well.
03-20-2018 | 06:25 PM
#6
On Reserve
Joined: Feb 2018
Posts: 13
Likes: 0
Republic Gimmick of Taxable Income for ATPCTP
Friends;
Just came to learn via Republic's own "welcome letter" the most deceiving practice I have yet to see in these Regionals.
First, Republic creamy advertises they will pay for your ATP-CTP course. It's on their website also. However, the make no mention whatsoever until you are hired. They send you a welcome letter that clearly states YOU will be taxed on a 1099 form for the full cost of the ATP-CTP course not to exceed $4,500 PLUS hotel costs and other expenses they may incur
In addition, should you not be able to make their chosen date for initial training, then you will owe them the entire costs for the ATP-CTP course again plus their hotel and airfare
Way to go Republic! Republic must really think Pilots are morons..
Wait until you get sued for deceiving practices.
Just came to learn via Republic's own "welcome letter" the most deceiving practice I have yet to see in these Regionals.
First, Republic creamy advertises they will pay for your ATP-CTP course. It's on their website also. However, the make no mention whatsoever until you are hired. They send you a welcome letter that clearly states YOU will be taxed on a 1099 form for the full cost of the ATP-CTP course not to exceed $4,500 PLUS hotel costs and other expenses they may incur
In addition, should you not be able to make their chosen date for initial training, then you will owe them the entire costs for the ATP-CTP course again plus their hotel and airfare
Way to go Republic! Republic must really think Pilots are morons..
Wait until you get sued for deceiving practices.
03-20-2018 | 06:45 PM
#7
Gets Weekends Off
Joined: Jan 2007
Posts: 692
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Wow. I had no idea this was going on anywhere. Great reporting! How many regionals is this happening at? Are they sending people to a third party vendor for the ctp or is it integrated in to their training program? What would stop them from taxing you for the cost of the entire training (ground and sim) plus hotels the whole time? We need to crowdsource this to get answers.
03-21-2018 | 04:51 AM
#9
Gets Weekends Off
Joined: Oct 2007
Posts: 2,740
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From: Sr. VP of button pushing
Just a disinterested bystander-
Just to get this straight. The company sends you your 1099 at the end of the year and says "Oh, by the way we gave you the CTP course which was a ~5000 dollar value." There was no withholding on this amount. So the IRS says "You owe us another $1250." (5000 x 25% tax bracket.) That's what's playing out?
Just to get this straight. The company sends you your 1099 at the end of the year and says "Oh, by the way we gave you the CTP course which was a ~5000 dollar value." There was no withholding on this amount. So the IRS says "You owe us another $1250." (5000 x 25% tax bracket.) That's what's playing out?
03-21-2018 | 06:09 AM
#10
Line Holder
Joined: Mar 2011
Posts: 1,109
Likes: 34
ATP CTP taxes
You are not an employee until you start Indoc. So they are doing you a service by not having to pay the full amount. You don’t meet the requirements of being an employee because you don’t have the ATP knowledge test completed. In order to take that knowledge test you need the ATP-CTP program completed.
So while this is the first I’m hearing of this, it doesn’t surprise me. You are deriving an educational benefit from an organization you aren’t a part of yet. It sounds like a bunch of whining from those that are coming in without an understanding of airline history and how good they have it.
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So while this is the first I’m hearing of this, it doesn’t surprise me. You are deriving an educational benefit from an organization you aren’t a part of yet. It sounds like a bunch of whining from those that are coming in without an understanding of airline history and how good they have it.
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