Are reimbursements considered taxable income?

[Qacer]

I'm supposed to be taking a trip overseas. My company wants me to initially pay for my hotel and then reimburse me later for the amount including foreign transaction fees and such. Since my company will be wiring money to my bank account directly, would the IRS see this as taxable income?

If so, then that's a pretty bad deal on my part. I'd get my company to pay the hotel fee upfront.

Please post federal tax questions in the stickied tax thread.

admin allisolm

 

[Fern]

Generally no.

The IRS does have a a number of rules about this. But basically if the expenses are considered business and the company requires you to submit expense reports then it will not be taxable to you.

The company should not even be reporting this as income to you.

Fern

 

[FoBoT]

no, if you are directly reimbursed it isn't income, they are just paying you back
i worked for 2 years as a contractor where we had to pay everything and turn in weekly expense report to get a reimbursement check the following week. most our jobs were in europe so we expensed the ATM fees/currency exchange and all that stuff

 

[SparkyJJO]

I submit the receipt, I get reimbursed. The receipt is kept on company file in case the company or I are ever audited and the feds want to know why I was given a check without it being reported.