Help! My employer now reimburses my expenses in my paycheck under net pay. Do I pay income taxes on that?
I am a preschool teacher and when I buy supplies for the school, my employer used to write me a check. Now it is added to my monthly paycheck. It says "Reimbursements added to net pay" on my paycheck. Will I be paying yearly income taxes on that?
- Bostonian In MOLv 73 years agoFavorite Answer
It would appear that your employer operates an accountable expense reimbursement plan. Under such a plan, reimbursements are not taxable income to you. They have merely simplified the process by adding it to the bottom of your paycheck instead of cutting a separate check.
- roderick_youngLv 73 years ago
Take a good look at all the details on your pay stub, in particular, the year-to-date earnings. Let's say your pay is $1000 / month, and last month, the year-to-date was $2000. If you had a reimbursed expense of $77.19 this month, it should not add to the year-to-date earnings, and this month, the total should be $3000, not $3077.19 . If it's the former, the world is working as it should, you are not getting taxed on your reimbursement, and the wages, salaries, and tips on your W-2 at the end of the year will not include the reimbursements. If you see your year-to-date gross being increased by reimbursements, however, better check with HR or payroll as to what's going on.
- Beverly SLv 73 years ago
We can't answer that question. It should not be, but you need to clairify with HR.
- troLv 73 years ago
of course not, the amount is not included in your gross
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- ninasgrammaLv 73 years ago
You will not be paying income tax on the reimbursements. You cannot take a deduction for these items that were reimbursed.
There will be no entry for these reimbursements on your tax return.
- EvaLv 73 years ago
No. That's why it's called reimbursement. If it was added to your gross, that would be entirely different.
- mercedesLv 73 years ago
It is not part of your income.
- 3 years ago
No, because it's add to NET pay.
- marys.mommaLv 73 years ago
Better save any documentation for that, either on a copy of the check, or on the check stub that came attached to the check.
To answer your question: No, you don't have to pay income tax on the reimbursement money. Just be sure to save the documentation, in case the amount reported to the IRS doesn't match your "net pay".
- Anonymous3 years ago
Shithead...YOU KEEP YOUR RECEIPTS of EVERYTHING YOU BUY...and SUBTRACT THAT AMOUNT from your final "income" amount.