Imputed Income
#15
https://www.law.cornell.edu/cfr/text/26/1.61-21
#16
Yes there is. Their free travel is considered a fringe benefit to you. You will wind up taxed for what the IRS is told the value of it is at your marginal rate.
https://www.law.cornell.edu/cfr/text/26/1.61-21
https://www.law.cornell.edu/cfr/text/26/1.61-21
#17
Gets Weekends Off
Joined APC: Apr 2007
Posts: 441
Yes there is. Their free travel is considered a fringe benefit to you. You will wind up taxed for what the IRS is told the value of it is at your marginal rate.
https://www.law.cornell.edu/cfr/text/26/1.61-21
https://www.law.cornell.edu/cfr/text/26/1.61-21
#19
Gets Weekends Off
Joined APC: Feb 2008
Posts: 19,261
In the case of buddy passes some airlines don’t pay imputed income because they charge what is known legally as a yield fare so the passes are not free. If they are free you owe imputed income regardless of what your employer lists when you file.
#20
On Reserve
Joined APC: Dec 2017
Position: SW CA
Posts: 14
That's correct. Imputed income is added for the SWAG points. There is no additional cost or fee for using a buddy pass. (Unless international then departure taxes etc. are charged but that is a separate matter).
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