Wednesday, January 21, 2004

Furloughed ALPA pilots may get big tax break

A recent ruling from the IRS will benefit furloughed airline pilots to the tune of hundreds or even thousands of dollars. In September 2003, a Private Letter Ruling by the IRS was issued and concluded that health care benefits paid by the Air Line Pilot’s Association on behalf of its furloughed members is not required to be included as income for the tax year. This applies to tax year 2003 as well as previous years. Amended federal and state tax returns would need to be filed to recover the tax paid on these benefits for 2000, 2001 and 2002.

The H&R Block offices in Peachtree City and Fayetteville have complete information on the private letter ruling and are available to answer questions or assist furloughed pilots in assessing their individual situations and preparing amended tax returns. Contact H&R Block in Peachtree City at 770-487-1739 or Fayetteville at 770-461-9978 for further information.

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