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In the U.S. travel by certain non-revenue travelers is considered taxable income (imputed income) when the service charges collected are less than the “fair market value” of the trip. Imputed income is the estimated value of a trip that is added to your taxable income to comply with Internal Revenue Service (IRS) guidelines. The IRS uses the term imputed income to describe the value of any benefit or service that is considered income when calculating your federal taxes. In other words, you will be taxed on the value of the travel.

Note: Imputed income may apply to team members outside the U.S. For more information, refer to your country tax code or tax professional.

Trips are valued for imputed-income purposes based on mileage for each segment flown and the value is reflected as such on the team member’s pay statement when the non-revenue charges are collected. If applicable, the total imputed income will be listed on your pay statement as "NRSA Tax Val or RG Travel”. Imputed income is not deducted from your net or gross pay; instead, it is added to your Gross Taxable Earnings on your pay statement and year-end W2 statement.

For retirees or non-active team members, imputed income balances are added in Travel Planner and must be paid once a quarter. Former team members with travel privileges only for which imputed income applies will also receive a year-end W2 with your imputed-income total.

Travelers subject to imputed income includes your:

• Your Domestic Partner
• Your Registered Companion*
• Your Non-dependent child
• Your Domestic Partner’s child(ren)—regardless of age under 24
• 
  

*If your RC is your parent, dependent child/dependent student, or is noted as a fellow team member/retiree of the company, travel is exempt from imputed income. Keep in mind to indicate the correct relationship when adding your RC.

If you received travel privileges based on an early out agreement, all travel by you, your dependent travelers and your parents may be subject to imputed income. Guest travelers (D3) and parents-in-law listed as your designated D2P travelers are not subject to imputed income.

Questions? If you have questions about your W-2 for imputed income related to travel, please contact the Team Member Service Center 

at 844-543-5747.  

The Work Number® quickly provides automated proof of your employment and salary information with American Airlines.

The Work Number® is widely known to mortgage lenders, banks, property management companies, and others who may need proof of your employment or income, and it’s easy for them to use. The service is available anytime, anywhere - 24 hours a day, 7 days a week.

You must set up an Account through the Work Number. The process to   
set-up  an account is explained on the American Airlines Retirees' Website www.re

You may also request your Employment Data Report from the Work Number Website. The Employment Data Report gives you the ability to determine if your information is correct.