FlyerTalk Forums - Miles are Taxable Fringe Benefits??

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- - Miles are Taxable Fringe Benefits?? (https://www.flyertalk.com/forum/milesbuzz/8070-miles-taxable-fringe-benefits.html)

Rewards like these generally should be included in taxable income. However, the amount to include should be based on the value. I not aware of any knowledgable person in the travel industry suggesting that UAL miles are worth $0.03 each (I am sure many on the board will thank you if there is someone buying at 0.03 and you post that information).

The website below is a link where companies can buy mileage from UAL, so you can see the actual cost, depending on whether the cetrificates are paper or electronic.

http://www.ualmiles.com/RewardMiles.jsp

If the company is overvaluing the miles, in addition to costing the employee more tax, the company is probably also overpaying on its employment taxes.

Quote:

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by DaveSF:
Personally, I'd just fly in business class, let them keep their 10k miles, and not have to worry about paying taxes on the $300 "value" of the miles!
</font>

I agree. It's small minded of them to offer so little...also to then be so nerdy about taxing you.

[This message has been edited by nologic (edited 04-28-2003).]