My Employer has a "Smart Choice Account" that provides up to $300 reimbursement for various gym related expenses. We use it every year for our families Rec Center membership. And every year it shows up on my pay stub as income.
IF I pay taxes on my income, then use said income to pay for the membership, then I get taxed AGAIN on the reimbursement, is this correct? It is not an income. My income is NOT increasing, in fact the Membership is over $400 so I don't get a full reimbursement. It isn't a Gift or gratuity (they have another program that gives out rewards of various cash rewards that is taxed at the Gift tax).
