Deductions & credits

If the business has an  "accountable" expense plan, then the business can reimburse employees or shareholders tax-free for ordinary and necessary business expenses.  Those expenses are also deductible by the business as ordinary and necessary business expenses.

 

Because you are reimbursed tax-free, there is nothing else for you to do, there is no deduction for you personally, nor do you report the remibursement as taxable.