Taxable Employee Expense Reimbursements

If employee expenses are submitted for reimbursement more than 60 days after the expense is incurred, the reimbursement may be taxable and appropriate withholdings would need to be made.

For a detailed explanation of this issue, see IRS Publication 463, “Travel, Entertainment, Gift, and Car Expenses” found on the IRS website.

Date this Avoiding Pitfall was most recently published: 11/17/2023