If an employee incurs travel expenditures and is fully reimbursed by the employer, neither the reimbursement nor the deduction is reported on the employee's tax return if reporting is pursuant to an accountable plan.

Question

Quizplus · Accepted Answer

Under an accountable plan, reimbursements for business expenses are not considered income and are not reported on the employee's tax return, as long as the expenses are substantiated and any excess reimbursement is returned.

If an Employee Incurs Travel Expenditures and Is Fully Reimbursed