Originally Posted by
pgary
What I meant (and I believe what I said) was that the taxes I would pay on the $625, $625 being the amount they would submit to the IRS on a 1099, would more than pay for a domestic ticket, without the restrictions, and with flight miles earned. I suspect that AA will deduct $625 from its taxes, which I think would be fraudulent.
Now I'm super confused. With tomorrow's reduced-capacity fuel-surcharged prices, exactly where can you fly on the taxes you'd pay on $625? (Remember, you don't pay all taxes on that, for exampe not your FICA, etc. So it's not as simple, nor as much, as taking the percentage that is removed from your paycheck and applying that to the $625.)
Me, I'd combine the 25k here with 75k earned elsewhere for an overseas trip in business class, which would be valued at least 4x$625, so definitely would be valued at more than 4 times
the tax on $625.
But furthermore, where did it say that the winner would be responsible for taxes? I remember that being explicitly said in other AA contests (that awarded
way huger amount of miles) a year or two ago, but I didn't see it in the T&Cs for this one.