Originally Posted by
slamtry
Does an American Airlines flight attendant get taxed on "imputed income" for D3 buddy passes? I looked at the newjetnet website and it was ambiguous. I had previously been told that for D3 passes there was no "imputed income" tax due. I have a friend who would hook me up with a D3 pass but he wants me to compensate for the extra tax it costs him. If he does have to pay tax, I will gladly compensate him. But as I say, the newjet website suggests that D3s passes don't result in extra tax for airline employee.
If it is taxed, he would get a form in the first month or two of next year. Or maybe it is added as a line on his next paycheck and he gets ding’d after you fly the trip.
in either case, ask him how he would come up with a way of determining how much your free ticket increases his personal tax liability.
He could also reach out to HR or payroll to ask if D3 tickets are added to taxable income to be sure…