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.
Travel by non-rev passengers is considered imputed income only when the service charges are less than the fair market value of the trip. At American, the D3 service charges are equal to the fair market value of the trip. Travelers who are subject to imputed income include domestic partners, domestic partner's children, registered companions and non-dependent children (up to age 24); they travel on D1 and D2 priority and generally pay no or reduced service charges.