Imputed Income
01-17-2019, 01:11 PM
#22
Gets Weekends Off
Joined APC: Sep 2007
Position: B737 Captain
Posts: 236
The Company pays the taxes for passes for immediate family members. The other passes and taxed via the SWAG points as stated above. The cost (tax) is about $12-15 per pass.
Imputed income is also used for Loss of License insurance. If you opt in for the tax-free LOL, you pay the tax on the company paid benefit. This will make the LOL pay tax-free. It shows up as Imputed Income.
Imputed income is also used for Loss of License insurance. If you opt in for the tax-free LOL, you pay the tax on the company paid benefit. This will make the LOL pay tax-free. It shows up as Imputed Income.
01-17-2019, 05:01 PM
#23
Gets Weekends Off
Joined APC: Feb 2008
Posts: 19,273
Originally Posted by tr4a
The Company pays the taxes for passes for immediate family members. The other passes and taxed via the SWAG points as stated above. The cost (tax) is about $12-15 per pass.
Imputed income is also used for Loss of License insurance. If you opt in for the tax-free LOL, you pay the tax on the company paid benefit. This will make the LOL pay tax-free. It shows up as Imputed Income.
Imputed income is also used for Loss of License insurance. If you opt in for the tax-free LOL, you pay the tax on the company paid benefit. This will make the LOL pay tax-free. It shows up as Imputed Income.
01-17-2019, 05:02 PM
#24
Gets Weekends Off
Joined APC: Feb 2008
Posts: 19,273
Originally Posted by Excargodog
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
01-17-2019, 05:30 PM
#25
Perennial Reserve
Joined APC: Jan 2018
Posts: 11,503
Originally Posted by tanker
Maybe at other airlines but not for SWA. At SWA there is no imputed income on personal, family, or companions passes. The only imputed income is on SWAG points which can be converted to buddy passes, Rapid Reward points, gift cards, or actual items.
That’s the federal law. SWA just structures it different than others. The tax still gets paid and ultimately YOU pay it at your marginal rate.
01-18-2019, 02:32 AM
#26
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Joined APC: Feb 2008
Posts: 19,273
Originally Posted by Excargodog
Which means you are paying imputed income on all of those things. The IRS gets their money, just the same, no matter what you barter the SWAG points for.
That’s the federal law. SWA just structures it different than others. The tax still gets paid and ultimately YOU pay it at your marginal rate.
That’s the federal law. SWA just structures it different than others. The tax still gets paid and ultimately YOU pay it at your marginal rate.
01-18-2019, 02:40 AM
#27
Gets Weekends Off
Joined APC: Apr 2007
Posts: 441
Excargodog
SWAG points are not used for non-rev travel for the employee, the employee’s spouse, the employee’s dependents, or the employee’s parents. In fact no SWA employee is required to participate in the SWAG program and they still get full flight benefits and there is no imputed income paid. Also retirees get flight benefits and they don’t pay any taxes on the flights. Again at SWA there are no taxes paid on flight benefits for active or retired employees and those family members eligible for flight benefits. The only taxes is on SWAG points which are not connected to flight benefits and there is no requirement to collect SWAG points.
SWAG points are not used for non-rev travel for the employee, the employee’s spouse, the employee’s dependents, or the employee’s parents. In fact no SWA employee is required to participate in the SWAG program and they still get full flight benefits and there is no imputed income paid. Also retirees get flight benefits and they don’t pay any taxes on the flights. Again at SWA there are no taxes paid on flight benefits for active or retired employees and those family members eligible for flight benefits. The only taxes is on SWAG points which are not connected to flight benefits and there is no requirement to collect SWAG points.
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