Joline works as a sales manager for the Washington Manufacturing Company. Although the company has an accountable reimbursement plan, as a cost containment measure the company will only reimburse its sales personnel for 80% of their business expenses. During the year, Joline incurred the following business expenses:
?
$$\begin{array} { l r }
\text { Airfare } & \$ 3,000 \
\text { Hotels } & 3,700 \
\text { Meals } & 2,200
\end{array}$$
If Joline's adjusted gross income is $62,000, what amount can Joline deduct as a deduction from adjusted gross income?

Question

Joline works as a sales manager for the Washington Manufacturing Company. Although the company has an accountable reimbursement plan, as a cost containment measure the company will only reimburse its sales personnel for 80% of their business expenses. During the year, Joline incurred the following business expenses:
?
$$\begin{array} { l r } 
\text { Airfare } & \$ 3,000 \
\text { Hotels } & 3,700 \
\text { Meals } & 2,200
\end{array}$$
If Joline's adjusted gross income is $62,000, what amount can Joline deduct as a deduction from adjusted gross income?

Quizplus · Accepted Answer

Under an accountable plan, employees cannot deduct unreimbursed expenses. Since Joline is reimbursed 80% of her expenses, she cannot deduct the remaining 20% as a deduction from adjusted gross income.

Joline Works as a Sales Manager for the Washington Manufacturing Airfare $3,000 Hotels 3,700 Meals 2,200\begin{array} { l r } \text { Airfare } & \$ 3,000 \\\text { Hotels } & 3,700 \\\text { Meals } & 2,200\end{array} Airfare Hotels Meals ​$3,0003,7002,200​

Joline Works as a Sales Manager for the Washington Manufacturing $\begin{array} { l r } \text { Airfare } & \$ 3,000 \\\text { Hotels } & 3,700 \\\text { Meals } & 2,200\end{array}$