I recently flew on a buddy pass of a friend who is a United employee.

I recently flew on a buddy pass of a friend who is a United employee. My understanding is that the cost of the ticket is deducted from the employee's paycheck. Is there additional pay deducted for Federal income tax withholding? In other words, does the ticket actually cost what is printed on the receipt or is there additional cost incurred by the employee for taxes?
Craig asked this question 2 years ago
  • 13006 answers • 92% helpful

    This expert is helping you out because there weren't many active United Airlines experts.

    The cost that is printed is the cost of the ticket with some necessary federal and airport taxes. The problem with Buddy Passes, (other than the fact they are practically useless because flights are full and you are on the bottom of the standby list), Unfortunately, the employee who sponsors you may be subject to imputed income from the benefit to you at the end of the year. It is impossible to figure out exactly until tax time. Best of luck to you!
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  • United Airlines • 349 answers • 96% helpful

    Yes , there is income tax cut on the ticket price BUT is withholding . It will be settled end of the year . The cost shown is the accurate cost.
    Thats what Sky Goddess and Fky by Night and Day meant. Its a complex calculation. It will be splited into different category and withholded and settled when they file returns .
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  • United Airlines • 6531 answers • 100% helpful

    Craig,
    There are no income taxes with buddy passes. Those only apply to a different category of pass so no worries. The cost shown should be the accurate cost.
    Hope you had a nice trip!
    2 comments
    • C
      Craig
      Thank you, Sky Goddess. I'm confused now though...Your answer seems to contradict the previous one by Fly by Night and Day.
    • United Airlines • 6531 answers • 100% helpful

      I can't see Fly by Night's answer but I do know that regular buddy passes are not imputed income. They cost more than the passes that are given to domestic partners, for example. I have personally had both circumstances and know from my own tax situation that my answer is correct.
  • United Airlines • 737 answers • 94% helpful

    taxes are not taken out of employees check for buddy passes ... they are charged in full on the pass it self ... now if his parents were to fly there is no cost to them but the employee is charged the taxes for them ...hope that helps