Employer Re-imbursement (Travel, Office Supplies, etc)

[koswami]

Hi, Is my reimbursement for work travel (flights, meals, hotels) and things like office supplies taxable income? I'm seeing these on my W2.

[DavidD66 · Accepted solution]

It depends.  If they were paid/reimbursed under an accountable plan, allowances or reimbursements paid to employees for job-related expenses are excluded from wages and are not subject to withholding. An allowance or
reimbursement policy (not necessarily a written plan) is considered an accountable plan if:

• There is a business connection to the expenditure.
• There is adequate accounting by the recipient within a reasonable period of time.
•  Excess reimbursements or advances are returned within a reasonable period of time. IRC Section 62(c); Treas. Reg. Section 1.62-2(c)(2)

Your employer may have made a notation in Box 14 of your W-2 indicating the amount of your reimbursement.  You will need to ask your employer whether or not that amount is included in Box 1 of your W-2 as taxable income.