I hate to be the one to break it to you, but you won't be getting an airline tax refund. No one will.
It's like the government and airlines are shouting a collective "Psyche!" First, it appeared that airline passengers might get a tax holiday on tickets purchased after Congress adjourned July 22 without passing legislation authorizing the Federal Aviation Administration's operating authority, leaving the administration without the ability to impose airline taxes. But most airlines decided not to pass on savings to travelers. Instead, they raised base fares to offset tax savings (see Airline Travelers Not Getting a Tax Holiday).
Then it seemed that people who bought airline tickets on or before July 22 for travel on or after July 23 were due a refund of the federal taxes they paid on their tickets (see Want an Airline Tax Refund? Be Patient). But Congress reinstated the FAA's operating authority today and, according to the IRS, reinstated airline ticket taxes retroactively. So passengers won't get a refund, after all.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
On the bright side, "the IRS intends to provide relief for passengers and airlines with respect to ticket taxes that were not paid or collected because of the lapse," according to an August 5 IRS statement. What that means is that the IRS won't be collecting back taxes from those who purchased airline tickets during the tax lapse.
The IRS expects airlines to resume collecting ticket taxes by 12:01 a.m. August 8.
-
AI Stocks Lead Nasdaq's 398-Point Nosedive: Stock Market TodayThe major stock market indexes do not yet reflect the bullish tendencies of sector rotation and broadening participation.
-
Top Tech Gifts to Grab at Walmart Before ChristmasBig savings on Apple, Bose, HP, Vizio and more while there's still time to shop.
-
AI Appliances Aren’t Exciting Buyers…YetThe Kiplinger Letter Artificial intelligence is being embedded into all sorts of appliances. Now sellers need to get customers to care about AI-powered laundry.
-
Why It's Worth Booking a Winter VacationTravel Smart In the early months of the year, travel demand dips — and so do prices.
-
5 Ways to Save on a Trip to the 2026 Olympics in ItalyA guide to going to the Milan-Cortina 2026 Winter Olympics without breaking the bank.
-
The Best (and Worst) Airlines for Flight Delays and CancellationsWhich airlines should you book and which should you avoid if you want to make it to your destination on time?
-
Four Luxury Spa Resorts for Well-Heeled TravelersWe hand-picked these U.S. luxury spa resorts for their serenity, amenities and dedication to the comfort of older travelers.
-
Child-Free Cruises Perfect For Your Retirement CelebrationHow to find a bespoke ocean or river vacation for adults. Many of these options are smaller, charming river cruises, expeditions, or niche experiences.
-
Noctourism: The New Travel Trend For Your Next Trip"Noctourism" is a new trend of building travel and vacations around events and plans that take place at night. Take a look at some inspiring noctourism ideas.
-
My Husband and I Retired at 67 With $3.2 Million, But He's Frugal About Travel. How Can I Convince Him to Loosen Up?We asked financial planning experts for advice.
-
Cruise Lines Sue to Block Hawaii’s New Climate Tourism TaxState Tax Your vacation to the Aloha State could come at a higher price tag next year. Here’s why.
