2006-10-25 07:42:37 · 11 answers · asked by pjdavis0131 2 in Business & Finance ➔ Taxes ➔ United States
If you are in employment, then I presume that you are on PAYE (Pay Your tax as you earn), therefore as long as the expense reimbursement is not over and above the actual expense incurred; it does not need to be reported. If however, the reimbursement is a lot more than the actual expense, then it could be treated as a benefit in kind; and the amount over and above the actual expense should be reported as it would be taxable.
2006-10-25 08:18:55 · answer #1 · answered by joechuksy 3 · 0⤊ 2⤋
Only if the reimbursement exceeds the actual cost in which case the excess is income. If you file a Form 2106 for employee business expenses you may need the employer reimbursements to enter in Step 2 of that form. And you should always beware that the employer has not included reimbursements in your wages on your W-2 form at the end of the year.
2006-10-25 07:51:25 · answer #2 · answered by ? 6 · 2⤊ 0⤋
Your employer does not have to reimburse you at all. They can use what ever rate they want. However, you can claim the difference between your employers rate and the IRS rate as an unreimbursed employment expense on your taxes. There is no law that employers MUST reimburse you at the IRS rate.
2016-05-22 13:16:51 · answer #3 · answered by Evelyn 4 · 0⤊ 0⤋
With an accountable plan your employer would have collected your original receipts (typically not taxable to you). However, if they paid you more than what you spent, then the difference would be taxable. For example if their mileage rate is more than the federal government's, then you would have to pay tax on the difference.
An accountable plan means the employer is now responsible for maintaining the documentation, and you can't use those expenses as a deduction because you were reimbursed.
2006-10-25 08:27:39 · answer #4 · answered by Dee 4 · 0⤊ 0⤋
Assuming your employer has an "Accountable Plan", No it is not reported to the IRS.
If your employer has a "Non-Accountable Plan" then the reimbursements show up in your W2. Then, if you itemize, you deduct them.
Most employers, including mine, have an Accountable Plan.
2006-10-25 07:47:15 · answer #5 · answered by Wayne Z 7 · 2⤊ 0⤋
You will only need to account for reimbursements if you have unreimbursed expenses that you will be claiming on Schedule A.
Otherwise, No.
2006-10-25 16:17:46 · answer #6 · answered by somethingorginaltoponder 2 · 0⤊ 0⤋
No. When you received your paycheck you were taxed on the money. You paid the expenses from your after-tax money. Your employer is just reimbursing you, not adding to your wages.
2006-10-25 07:47:39 · answer #7 · answered by Anonymous · 0⤊ 2⤋
Yes in most cases. It needs to be reported as income for reimbursment expense. You only claim a credit if you are not reimbursed for your expense.
2006-10-25 08:10:01 · answer #8 · answered by brownskeith 1 · 0⤊ 5⤋
No. If your employer does report them and include them on your W-2 you can do an adjustment and remove them.
2006-10-25 10:01:55 · answer #9 · answered by acmeraven 7 · 0⤊ 1⤋
No. It's reimbursement, not income.
2006-10-25 07:49:53 · answer #10 · answered by Jack430 6 · 1⤊ 1⤋