If an employee receives a reimbursement for employee business expenses, the amount of the reimbursement is always excluded from gross income and the expenses are deductible as deductions for adjusted gross income.

Question

Quizplus · Accepted Answer

Reimbursements are excluded from gross income only if they are under an accountable plan. If not, they are included in income, and the expenses may not be deductible.

If an Employee Receives a Reimbursement for Employee Business Expenses