Employees are responsible for any tax liability that results from the receipt of taxable transportation fringe benefits.

Yes, TSA employees pay all standard federal and state taxes just like any other W-2 employee in the United States. Despite being federal government workers and members of the Department of Homeland Security, they are not exempt from income tax, Social Security, or Medicare withholdings. In fact, because they are "common-law employees" of the federal government, their taxes are strictly withheld from every bi-weekly paycheck. They receive a standard W-2 form at the end of the year to file their returns. The only "tax-related" advantage TSA employees might have is access to Pre-Tax Benefits, such as the Federal Flexible Spending Account (FSAFEDS) for healthcare or the Thrift Savings Plan (TSP), which is similar to a 401(k). These programs allow them to set aside a portion of their income before taxes are calculated, thereby reducing their overall taxable income. However, the wages they eventually take home are fully subject to the same tax brackets as the general public. There is a common misconception that "government pay" is tax-free, but for the TSA and almost all federal civilian roles, this is entirely false.