rxziebel

Hi,

While waiting until at least Thursday before calling to cancel (due to the system outage and extreme call volume) I thought I might ask the experts here for info.

I have a one way award ticket booked intl to intl for 17,500 miles and $27 taxes. No longer taking the flight, and want my $27 taxes refunded. I will just abandon the miles as paying $150 to re-instate them makes no sense. They are not worth $150 to me.

Tried doing this on the website, but it insists that I enter a credit card number to pay for the miles being reinstated. Is there any trick to avoiding this online? If not, is there any issue when I call? Does someone know an obscure rule that prevents this?

Any info is appreciated.

Thanks so much!

flyerCO

The CoC only allows for tax/fee refund if the ticket is actually refunded. Since you don't want to pay the fee to refund the ticket, no taxes will be returned. In a number of cases the taxes/fees apply unless the ticket is actually refunded. Think of sales tax at the store. If you order a special order item, most stores make it non-returnable. Even if you decide you don't need it, and leave it at the store, sales tax still applies since the item was sold. It can only be refunded if the item itself is refunded.

ATOBTTR

You can always wait to see if there are any schedule changes between now and then, or even on the day of departure, a major delay that will allow you to cancel the ticket and then have the miles redeposited and the taxes refunded.

Also keep in mind that even at "Pay with miles" rate, 17,500 miles translates to $175 at $0.01/mile, so paying $150 to cancel and get the miles back still brings you $25 ahead of just writing them off, in addition to the taxes.

xliioper

The IRS has ruled that the government does not have to refund the taxes/fees on non-refundable tickets. The taxes are actually paid by the airlines shortly after you book (not when you actually fly). The government will not refund the taxes back to the airlines if you cancel or fail to fly on a non-refundable ticket. So, naturally, you can't really expect the airlines to refund them back to you.

sethb

The ticket is refundable (with a fee).

3Cforme

Argue it if you want. LBJ's explanation follows that offered by AA.

Upon request, taxes and fees not imposed by the airline may be refunded if the airline's obligation to remit the tax or fee depends upon use of the ticket for travel. Taxes and fees will not be refunded if the airline's obligation to remit the tax or fee arises from the collection of the tax or fee. All taxes and fees imposed by the United States government fall within this category and are not refundable.


https://www.aa.com/pubcontent/en_US/...ce/Refunds.jsp

flyerCO

The main reason non-refundable tickets don't get taxes refunded is because the amount isn't refunded. What is being sold (an airfare going between X airports) still is what is being sold even though not used. A refundable fare can get taxes/fees back because of the fact that what is being sold is actually no longer being sold.

Box10

I can confirm that DL will not refund the taxes.

xliioper

Think of it this way -- the ticket only becomes refundable once you pay the fee (where you will get both the miles and taxes back). No fee payment equals non-refundable and sacrificing both miles and taxes.

rxziebel

Thank you all very much! I am so glad I asked first and did not take up phone agent time during this busy period. Makes total sense and I will just accept losing the $26 taxes.

Thanks again all!

sfozrhfco

..but the IRS would have nothing to do with an award ticket that is between two international points. If the travel is within or from Europe, travel must occur for the taxes to be collected. There are several websites you can go to to claim the tax money back if the airline does not proactively refund them.

sethb

Yet when I've refunded a mileage ticket, I got the taxes back, every time. So clearly the taxes are refundable. (Based on status, the fee to redeposit the miles was waived. But that's not relevant.)

ATOBTTR

As I said upthread, monitor your planned flights the day of your trip. If any delays would cause you to arrive at your destination more than 60 minutes (or it may be 90 minutes), you can declare "Trip in vain" and cancel the trip for a full refund, which should include miles and taxes.

xliioper

It is relevant because it's considered refundable ticket when you are a Plat/Diamond. For everyone else, the ticket becomes refundable when you pay the fee. It's not really that complicated. If the airlines grants you a refund (either on a mileage or revenue ticket) you get both the original form of payment back (either miles/money) and the taxes. No refund == no taxes back. It's not the fact that the ticket is "potentially" refundable that gets you back your fees -- you still have to actually meet any conditions that grant a refund in order to get the fees back. Yes, this only applies to US tickets (by government, I meant USG in case that was unclear). However, my understanding is that many other countries treat non-refundable tickets the same. The UK government will refund APD taxes on unflown tickets, but not other taxes/fees.

Orange County Commuter

If the OP has not cancelled. Call and be nice. I just called to cancel an award ticket. I jokingly told the agent I waited until today to cancel due to the meltdown on Monday. She waived my re-deposit fee.


This is the 2nd time lately that an agent has been nice and waived fees for me. I'm no longer a great flyer so I don't expect anything. But being nice has paid off 😀