Are business expenses reimbursed by a client taxable?

I am a single-member LLC and visited a client to perform work in 2022. I paid for the airfare, hotel, etc. and the client reimbursed me for my costs. Is this reimbursement considered taxable income by the IRS?

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1 Best answer

Expert Alumni

Feb 25, 2023 5:38:41 PM

No, not if you gave the client receipts and that is what the client reimbursed you for.

You would simply not report those costs as expenses since they were reimbursed.

It would not be income for you and you also would not deduct (claim) any expenses relating to those items.

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Expert Alumni

Feb 25, 2023 5:38:41 PM

No, not if you gave the client receipts and that is what the client reimbursed you for.

You would simply not report those costs as expenses since they were reimbursed.

It would not be income for you and you also would not deduct (claim) any expenses relating to those items.

Here is a link to a similar question

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Are business expenses reimbursed by a client taxable?