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?

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  • 3 years ago
    Favorite 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.

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  • 3 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.

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  • 3 years ago

    We can't answer that question. It should not be, but you need to clairify with HR.

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  • tro
    Lv 7
    3 years ago

    of course not, the amount is not included in your gross

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  • 3 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.

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  • Eva
    Lv 7
    3 years ago

    No. That's why it's called reimbursement. If it was added to your gross, that would be entirely different.

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  • 3 years ago

    It is not part of your income.

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  • 3 years ago

    No, because it's add to NET pay.

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  • 3 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".

    • A Hunch
      Lv 7
      3 years agoReport

      Employers don't report net pay to the IRS. It's not taxable income so not reported to the IRS.

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  • Anonymous
    3 years ago

    Shithead...YOU KEEP YOUR RECEIPTS of EVERYTHING YOU BUY...and SUBTRACT THAT AMOUNT from your final "income" amount.

    • Bostonian In MO
      Lv 7
      3 years agoReport

      Crawl back under your rock, jackass. Aside from that, you are WRONG!

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