If an employer reimbursement plan is an accountable plan and an expense that is fully reimbursed, the employee does not have to report either the expense or the reimbursement .

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If an employer reimbursement plan is an accountable plan, meaning it follows IRS regulations, and the expense is fully reimbursed, the employee does not have to report it as income on their tax return. However, if the expense is not fully reimbursed or if the employer is using a non-accountable plan, the employee may have to report the reimbursements as income and deduct the expenses separately.

If an Employer Reimbursement Plan Is an Accountable Plan and an Expense