Jean's employer has an accountable plan for reimbursing employee expenses. Jean is reimbursed for $1,500 of business travel and $500 for various business subscriptions and professional dues. The $2,000 reimbursement should be treated as follows:

Question

Quizplus · Accepted Answer

Since Jean's employer has an accountable plan for reimbursing employee expenses and the reimbursements do not exceed the actual expense, there is no taxable income to report to Jean. Therefore, option C is the correct answer.

Jean's Employer Has an Accountable Plan for Reimbursing Employee Expenses