Already-Purchased Flights: Airline Excise Tax Refund

[Tink-aholic]

Since the excise tax was just repealed (?) (not renewed?) as of Friday and I have a flight coming up, I contacted Southwest to find out how to get my taxes back. They told me I had to contact the IRS.

From the IRS website:

IRS Statement on Airline Ticket and Other Aviation-Related Taxes

The laws authorizing the airline ticket tax and other aviation-related taxes expired at midnight on Friday, July 22. The IRS continues to monitor pending legislation related to this issue. The IRS will continue to work with the airline industry to address issues relating to the collection and payment of the taxes involved. Taxpayers do not need to take any action at this time. The IRS will provide further guidance on this issue in the near future.

http://www.irs.gov/newsroom/article/0,,id=242812,00.html

So, any ideas on how this will work? Will I have to keep documentation and file with my tax return next year? My social security number surely isn't attached to my ticket in any way. Thoughts?

 

[ancestry]

I would be highly surprised if anyone gets a refund on these taxes. They were to be collected on all flights sold through July 22. If you bought your tickets before that date then you have to pay the taxes.

I would suspect the only way to get them back would be to cancel your airfare and then rebook without the associated taxes.

 

[Tink-aholic]

According to Good Morning America today, all flights that occur after last Friday until "this whole mess is straightened out" are due a refund. George Stephanopoulos recommended to email your airline carrier...though he wasn't sure who would be paying the money back.

It makes sense to me that they aren't allowed to keep the tax on a flight that hasn't occurred yet.

 

[manning]

I heard some airlines raised fares the same amount as the tax.

 

[punkin712]

If you bought tickets on JetBlue, they have info on their blog about requesting a refund for the taxes: http://blog.jetblue.com/index.php/2011/07/25/information-regarding-federal-tax-changes/

We aren't flying until the end of August, but I expect it to be sorted out by then. I'd love to hear if anyone actually gets the refund!

 

[macbitt]

I heard some airlines raised fares the same amount as the tax.

By Sunday this is exactly what happened with all airlines. Only a few showed cheaper fares due to the lack of taxes due on Saturday, but by Monday all airlines raised their rates to match the original total with tax and are pocketing the tax savings themselves, not passing it along. The tax savings is around $25 for every $300 the ticket cost.

 

[MinnieVanMom]

And now the airlines are charging the same amount as before and not having to pay the tax so they are getting pure profit on the new fares. Urg! Please when do the hard working joe's and jane's get a break?

 

[Planogirl]

I bought a package through Expedia a few days ago and was wondering about this. I don't even know how to see the breakdown or if we were even charged taxes.

And to MinnieVanMom, I couldn't agree more.

 

[bigmama67]

I just got tickets from Delta today - Tucson to Newark. I'm taking DS to Arizona for my nephew's Bar Mitzvah in November - and the fares had gone DOWN by $20 each since I started watching them - I figured it was time. Unfortunately, I'm not in a position to buy tickets for the other leg of our trip (Southwest non-stop to Phoenix is what it will be). Hopefully the tax situation will be held off for awhile?

 

[ilovemk76]

And now the airlines are charging the same amount as before and not having to pay the tax so they are getting pure profit on the new fares. Urg! Please when do the hard working joe's and jane's get a break?

Nobody is making you take an airplane. I just flew on Monday. I could have driven. Time from place A to the airport to place B is the same as driving from A to B. Cost is about the same too. I will make the return trip later this week. Both are my choice so I pay the price.

I have no idea how much of my ticket it the excise tax. I would have preferred if the tax just stayed.

 

[lost*in*cyberspace]

And now the airlines are charging the same amount as before and not having to pay the tax so they are getting pure profit on the new fares. Urg! Please when do the hard working joe's and jane's get a break?

Don't you think airline employees are hard working?

 

[Free4Life11]

Nobody is making you take an airplane. I just flew on Monday. I could have driven. Time from place A to the airport to place B is the same as driving from A to B. Cost is about the same too. I will make the return trip later this week. Both are my choice so I pay the price.

I have no idea how much of my ticket it the excise tax. I would have preferred if the tax just stayed.

Yeah we get that, but it would have been nice break if the airlines had passed on the savings to their customers. From a marketing perspective, seems like it would have been a perfect opportunity to create some goodwill and bash the competitors...but I'm not surprised most airlines chose to make a quick profit.

 

[Alexander]

Maybe it's just me, but for crying out loud, if you can afford to fly, you can afford to pay the taxes. Isn't the Federal government in this whole mess because they are so far in debt? Why make it worse for your few dollars in taxes by requesting it back? I don't get it really!

 

[ilovemk76]

Yeah we get that, but it would have been nice break if the airlines had passed on the savings to their customers. From a marketing perspective, seems like it would have been a perfect opportunity to create some goodwill and bash the competitors...but I'm not surprised most airlines chose to make a quick profit.

Because as soon as the tax comes back all those goodwill customers will be complaining at how much the tickets went up. This tax will be back. Could be in a matter of weeks.

Many airlines do not make a profit now. That is why the taxpayers bailed them out.

Maybe it's just me, but for crying out loud, if you can afford to fly, you can afford to pay the taxes. Isn't the Federal government in this whole mess because they are so far in debt? Why make it worse for your few dollars in taxes by requesting it back? I don't get it really!

You are 100% correct and that is why I said I wished the tax just stayed.

Flying is an extreme luxury that many now think is a need.

 

[Planogirl]

Defending the airlines and defending taxes? That's interesting and not something you see every day. Personally, I'll take any savings I can get whether it's temporary or permanent. The airline employees being hardworking or the government spending money like a drunken shopaholic has no bearing on that.

 

[Minnesota!]

Maybe it's just me, but for crying out loud, if you can afford to fly, you can afford to pay the taxes. Isn't the Federal government in this whole mess because they are so far in debt? Why make it worse for your few dollars in taxes by requesting it back? I don't get it really!

yep...

 

[averysmom]

Maybe it's just me, but for crying out loud, if you can afford to fly, you can afford to pay the taxes. Isn't the Federal government in this whole mess because they are so far in debt? Why make it worse for your few dollars in taxes by requesting it back? I don't get it really!

Flight taxes are SO cheap in the US - you guys have no idea

In Canada, the TAXES and fees on a 238.00 flight are 109.00. It's one of the reasons if you live in a border city, that many Canadians drive over the border to fly from the US.

 

[pooksma]

Flight taxes are SO cheap in the US - you guys have no idea

In Canada, the TAXES and fees on a 238.00 flight are 109.00. It's one of the reasons if you live in a border city, that many Canadians drive over the border to fly from the US.

AMEN to that! My flights for March would be 2300 minimum flying from home. By driving to Maine I save 1000 dollars.

 

[Free4Life11]

Because as soon as the tax comes back all those goodwill customers will be complaining at how much the tickets went up. This tax will be back. Could be in a matter of weeks.

Many airlines do not make a profit now. That is why the taxpayers bailed them out.

Maybe so, but ticket prices already go up and down that they may not notice. It just rubs me the wrong way to pocket the difference, but hey they're a business trying to make money. And I'm just a consumer always looking for ways to save.

Flying is an extreme luxury that many now think is a need.

Interesting perspective. I don't think flying is always a "need," but I'd hardly call flying coach on a sold out flight as "extreme luxury."

 

[Alexander]

Defending the airlines and defending taxes? That's interesting and not something you see every day. Personally, I'll take any savings I can get whether it's temporary or permanent. The airline employees being hardworking or the government spending money like a drunken shopaholic has no bearing on that.

Pay it now or pay it later. You are going to pay it one way or another.