Mathew works for Levitz Mortgage Company. The company has an accountable reimbursement plan. During the year Levitz reimburses Mathew $5,400 for his business expenses. Mathew's adjusted gross income for the year is $45,000. His business expenses are as follows:
?
$$\begin{array} { l r }
\text { Airfare } & \$ 2,900 \
\text { Hotel } & 1,900 \
\text { Meals } & 2,400
\end{array}$$
What amount will Mathew be able to deduct as a deduction from adjusted gross income?

Question

Mathew works for Levitz Mortgage Company. The company has an accountable reimbursement plan. During the year Levitz reimburses Mathew $5,400 for his business expenses. Mathew's adjusted gross income for the year is $45,000. His business expenses are as follows:
?
$$\begin{array} { l r } 
\text { Airfare } & \$ 2,900 \
\text { Hotel } & 1,900 \
\text { Meals } & 2,400
\end{array}$$
What amount will Mathew be able to deduct as a deduction from adjusted gross income?

Quizplus · Accepted Answer

Under an accountable plan, reimbursements for business expenses are not included in the employee's gross income and are not deductible by the employee. Since Mathew was reimbursed $5,400 for his total business expenses of $7,200 ($2,900 + $1,900 + $2,400), he cannot deduct any of these expenses from his adjusted gross income.

Mathew Works for Levitz Mortgage Company Airfare $2,900 Hotel 1,900 Meals 2,400\begin{array} { l r } \text { Airfare } & \$ 2,900 \\\text { Hotel } & 1,900 \\\text { Meals } & 2,400\end{array} Airfare Hotel Meals ​$2,9001,9002,400​

Mathew Works for Levitz Mortgage Company $\begin{array} { l r } \text { Airfare } & \$ 2,900 \\\text { Hotel } & 1,900 \\\text { Meals } & 2,400\end{array}$