dixieflyer,
If you go out on LOL, would you pay taxes on the payments you receive from the coverage?
If the answer is yes you would, then I'd aggressively pursue the issue & see if there is a way that you can write off the extra premiums, because it doesn't make intuitive sense that you'd pay premiums post-tax & then have to pay tax on the benefits as well.
If the answer is no you wouldn't, then my suspicion would be that you can't / shouldn't try to write off the extra premiums, because I doubt the IRS would let you pay pre-tax $ for premiums that go toward a tax-free insurance payment.
That was the basic tradeoff at my airline, albeit with different program details: you must pay tax on benefits OR on the (money you use to pay the) preumiums, but not both.
Again, I'm not giving tax advice, and what "seems to make sense" is certainly no guide to the tax code. But if I were in your shoes, that's the reasoning I'd use as far as how much energy I'd put into further researching the issue, getting second opinions, etc.
Cheers,
Snoopy
If you go out on LOL, would you pay taxes on the payments you receive from the coverage?
If the answer is yes you would, then I'd aggressively pursue the issue & see if there is a way that you can write off the extra premiums, because it doesn't make intuitive sense that you'd pay premiums post-tax & then have to pay tax on the benefits as well.
If the answer is no you wouldn't, then my suspicion would be that you can't / shouldn't try to write off the extra premiums, because I doubt the IRS would let you pay pre-tax $ for premiums that go toward a tax-free insurance payment.
That was the basic tradeoff at my airline, albeit with different program details: you must pay tax on benefits OR on the (money you use to pay the) preumiums, but not both.
Again, I'm not giving tax advice, and what "seems to make sense" is certainly no guide to the tax code. But if I were in your shoes, that's the reasoning I'd use as far as how much energy I'd put into further researching the issue, getting second opinions, etc.
Cheers,
Snoopy
