A couple times per year I have training or travel expenses related to my job. My company's policy is for me to pay the expenses out of pocket, and they reimburse me in full. Are these reimbursement payments being taxed? Do I need to make sure to deduct them? What if I file a simple deduction? Thanks.

  • 1
    No, reimbursements are not taxed and should not be deducted.
    – keshlam
    Jan 6, 2016 at 14:00

1 Answer 1


I'm assuming that you're in the US. In that case, the answer is that it depends on how your company set up its reimbursement plan. The IRS recognizes "accountable" and "nonaccountable" plans. Accountable plans have to meet certain requirements. Anything else is nonaccountable. If you are reimbursed according to an accountable plan, this is not income and should not be reported to the IRS at all. If you are reimbursed under a nonaccountable plan, then this is income but you might be able to get a deduction on your tax return if you itemize.

Most established companies have accountable plans for normal business expenses.

More detail from IRS: http://www.tax.gov/TaxabilityCertainFringeBenefits/pdf/Accountable_v_Nonaccountable_Plans_Methods_of_Reimbursing_Employees_for_Expense.pdf

  • 2
    While this answer is very precise, 99.999% of expense reimbursements are accountable, and thus not taxed. Discussing the difference is more likely to be confusing. Jan 6, 2016 at 16:01
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    @DJClayworth I did consider that point, but it seems like a disproportionate number of people who browse this site are concerned with small businesses to very small businesses. Among those businesses, it's not so clear that plans will be accountable because it requires (a) awareness that it's an issue and (b) a little bit of work to set it up.
    – user32479
    Jan 6, 2016 at 18:18

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