9.06.25 – Imputed Income Issues for Domestic Partners’ Dental Plans

Imputed Income Issues for
Domestic Partners’ Dental Plans

Saturday, September 6, 2025

American Airlines has notified us of “corrections” to imputed income for Flight Attendants covering domestic partners under the dental plan. While the company admits that an administrative error by Alight caused imputed income not to be recorded in 2024 through August 2025, they have chosen not to issue corrected 2024 W-2 forms or notify impacted members. Instead, they delayed and pushed this income into 2025 payroll records.

The facts:

• About 215 Flight Attendants are impacted.
• The average correction is $330 in imputed income.
• Half of the amount owed for 2024 was added to the July 30 paycheck and the other half to the August 15 paycheck.
• Beginning August 30, ongoing 2025 imputed income will be reported per paycheck, with arrears spread over the rest of 2025.

What this means for you:

• Your 2024 W-2 form will not change since American Airlines will not be issuing corrected forms.
• Your 2025 taxable wages will include amounts that are from 2024.
• This will be added to your 2025 tax filings.

What you should do:

• Review your July and August paychecks carefully if you carry dental coverage for a domestic partner.
• Keep documentation of any changes to your income and payroll taxes and consult your accountant.
• For questions, contact Alight’s Benefits Service Center at (888) 860-6178.

Please stay informed and keep records as these corrections are applied.

In Solidarity,

Hayley Brewer
APFA National Health Department Chair
[email protected]