It's tax return time!

[Lathum]

Originally Posted by Butter_of_69

I have a stupid question:

I recently got a promotion which will include things like a paid cell phone and I will get reimbursement of expenses for lunches, parking, and such.

Is reimbursement of expenses considered taxable income?

I would double check but I used to have a similar job and I never received any tax documents.

[KevinNU7]

If the company is giving you $$ every month for you to get those things taken care of then it is taxable, if the company it paying for those items directly then it is not taxable. For example if you have an AMEX company card and you charge all your meals, travel and even cell hpone bills the company will pay those bills for you and there is no tax impact. But if the company gives you $500 per month for incidentals then you have to pay. Often if a company goes that route they will gross up the money to allow for taxes and will taxes you in your paycheck. So they may give yu something like $575 and take $75 out for taxes.

[Butter]

I'm pretty much going to be expense report-ing everything, so I think it will be such that they are only paying for actual expenses and not giving me a set amount to spend.

Thanks for the help.

[KevinNU7]

Yep no tax then. Another good example is my relocation debit card. If the coming had chosen to go the route of giving me money whenever I submitted a receipt it would not be taxed, however they are giving me WAY too much money so I am not complaining.

[Logan]

Originally Posted by KevinNU7

If the company is giving you $$ every month for you to get those things taken care of then it is taxable, if the company it paying for those items directly then it is not taxable. For example if you have an AMEX company card and you charge all your meals, travel and even cell hpone bills the company will pay those bills for you and there is no tax impact. But if the company gives you $500 per month for incidentals then you have to pay. Often if a company goes that route they will gross up the money to allow for taxes and will taxes you in your paycheck. So they may give yu something like $575 and take $75 out for taxes.

Are there some subtle differences in this? I get food per diem from my gov't job when I'm traveling...I don't need to show receipts, and really don't need to even spend the money at all, but I don't have to pay taxes on it.

Or...since the per diem rates come directly from the GSA, are these figures (ie $64/day in the DC area) really an after-tax amount, along the lines of what you described?

[KevinNU7]

That I am not sure of. Seems like you have a nice deal going there

[Craptacular]

Originally Posted by Logan

Are there some subtle differences in this? I get food per diem from my gov't job when I'm traveling...I don't need to show receipts, and really don't need to even spend the money at all, but I don't have to pay taxes on it.

Or...since the per diem rates come directly from the GSA, are these figures (ie $64/day in the DC area) really an after-tax amount, along the lines of what you described?

Even though you don't show receipts, do you still have to file an expense report? If so, it should not be taxable, as long as you are not on extended travel (like working on a project across the country for a year). Basically, this is treated the same as being reimbursed for actual expenses. Per diems just make things easier. However, if you don't file an expense report, then I believe it is treated just like taxable income.

[Logan]

Originally Posted by Craptacular

Even though you don't show receipts, do you still have to file an expense report? If so, it should not be taxable, as long as you are not on extended travel (like working on a project across the country for a year). Basically, this is treated the same as being reimbursed for actual expenses. Per diems just make things easier. However, if you don't file an expense report, then I believe it is treated just like taxable income.

I do file an expense report, but it's a straight claim of the per diem; i.e. I claim 4.5 days of PD for the week @ $64/day = $288. That's along with my mileage, tolls, hotel, etc.

[Wolfpack]

I'm getting a sizeable return thanks to child #2 arriving last year, but now I'm having to fork some of it over to a plumber because we developed a leak in a pipe in a wall behind the kitchen sink. Grrrr.....