It depends on your employer's expense allowance policies and whether or not those policies are considered to be administered through an accountable plan or a non-accountable plan. See Pub 5137, page 4 for accountable plans and page 5 for Non-accountable plans. Basically, if you employer has an accountable plan, they are not taxable and not included in Box 1. Any plan that is not an accountable plan is a non-accountable plan, which is taxable to you and included in Box 1.
A nonaccountable plan is an allowance or reimbursement program or policy that does not meet all three requirements for an accountable plan. Treas. Reg. Section 1.62-2(c)(3)
Payments, including advances, reimbursements, allowances and so on, made under a nonaccountable plan are taxable wages subject to all withholding when paid or constructively received by an employee. Treas. Reg. Section 1.62-2(c)(5)
Employers may have multiple expense allowance policies and may have both accountable and nonaccountable plans for different types of reimbursements. Employers may establish more restrictive conditions for the plan than imposed by the IRS accountable plan requirements.
Employees cannot compel the employer to treat nonaccountable plan payments as if they were paid under an accountable plan. Treas. Reg. Section 1.62-2(c)(3)
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