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Employer Re-imbursement (Travel, Office Supplies, etc)

Forum|Forum|3 years ago
February 14, 2023
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Hi, Is my reimbursement for work travel (flights, meals, hotels) and things like office supplies taxable income? I'm seeing these on my W2.

Best answer by DavidD66

It depends. If they were paid/reimbursed under an accountable plan, allowances or reimbursements paid to employees for job-related expenses are excluded from wages and are not subject to withholding. An allowance or
reimbursement policy (not necessarily a written plan) is considered an accountable plan if:

There is a business connection to the expenditure.
There is adequate accounting by the recipient within a reasonable period of time.
Excess reimbursements or advances are returned within a reasonable period of time. IRC Section 62(c); Treas. Reg. Section 1.62-2(c)(2)

Your employer may have made a notation in Box 14 of your W-2 indicating the amount of your reimbursement. You will need to ask your employer whether or not that amount is included in Box 1 of your W-2 as taxable income.

D

DavidD66Answer

It depends. If they were paid/reimbursed under an accountable plan, allowances or reimbursements paid to employees for job-related expenses are excluded from wages and are not subject to withholding. An allowance or
reimbursement policy (not necessarily a written plan) is considered an accountable plan if:

There is a business connection to the expenditure.
There is adequate accounting by the recipient within a reasonable period of time.
Excess reimbursements or advances are returned within a reasonable period of time. IRC Section 62(c); Treas. Reg. Section 1.62-2(c)(2)

Your employer may have made a notation in Box 14 of your W-2 indicating the amount of your reimbursement. You will need to ask your employer whether or not that amount is included in Box 1 of your W-2 as taxable income.

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