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Refund of excise tax on purchased miles

Refund of excise tax on purchased miles

  1. Glenn


    Several years ago, Gary Leff from View From the Wing published an article regarding the possibility of a refund of the 7.5% federal excise tax levied on purchased airline miles if the miles were used for non-taxable travel such as international flights (most in this group, I assume, redeem miles for premium class international travel).

    Anyone done this before? Or any CPAs or tax professionals in the group who can weigh in on this? I just purchased 63,000 Alaska miles to pad my balance, and used 70,000 to redeem CX first class. Tax season is coming up, so wondering if this is even possible and what the practicalities are surrounding such a refund claim.

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