Update on Non-Rev Travel Related Imputed Income

Earlier this year, we shared that the IRS now requires us to report your income related to retiree travel on Form W-2. Because of this late change in reporting requirements, the company paid related Federal payroll taxes on your behalf for 2017. At the time, we also shared that you would be responsible for all payroll taxes associated with travel imputed income in 2018 and beyond.

As a reminder, imputed income is the estimated value of a trip that is added to your taxable income to comply with the IRS’ guidelines. It applies to travel by registered companions, non-dependent children, domestic partners and their children. Trips are valued for imputed income purposes based on mileage for each segment flown.

If any of your travelers subject to imputed income have flown since January 2018, you’ve incurred imputed income for their travel. Because we haven’t had an automated payroll tax payment solution for you to pay the payroll taxes associated with that income, you’ve been accruing a balance. Beginning in November 2018, we expect the Travel Planner to be able to process your payroll tax payment associated with imputed income.

Here’s what that means:

Once your imputed income balance is added to the Travel Planner, you’ll be in “pay now” status for any payroll taxes that are owed, which means you’ll need to complete payment through the Travel Planner using a credit or debit card.
We expect this payroll tax balance to include all payroll taxes due on your imputed income due from January 2018 through a date in November. That date will be determined once programming is complete.
We’ll let you know once the system is live and provide more detailed instructions on how to pay your payroll taxes through the Travel Planner.
This imputed income and any related payroll tax, plus any additional accrued throughout the rest of 2018, will be included on a year-end Form W-2 that you’ll receive at your address on file with American.

If you have an imputed income balance, you should have received a letter in the mail including similar information as above, as well as a statement to give you an idea of your current payroll tax balance. If you see any errors on this statement, it’s important you file your dispute before November by following the below steps:

We’ll be back with more as we get closer to November. If you have any questions in the meantime, please reach out to the Team Member Service Center at 1-844-543-5747.

Under Travel, click “Open a case or review my case”
Click “Open a case”
Enter "Imputed income" as the Subject
Select "Travel" for the Topic


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