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[[ A few more questions on the topic of expense reimbursements being considered taxable income:
For the past few weeks all my expense reimbursements are considered taxable income. Here is the current idea -
I may be switching employers in the not to distant future, however, I may still be working on the out of town project.
Question 1) The new employer may pick up all my expenses for me (air travel, lodging, etc.), thus the $ would never hit my paystub. Since I never take possesion of the $, would the IRS still consider this a reimbursement to me that would need to appear on my 1040?]]
Generally no. But there are two different types of reimbursement plans: accountable (where you are reimbursed only what you spend, and only what you have documentation on) and non-accountable (where you simply receive an amount of money and you pay your expenses). With the accountable plan, you have no additional taxable income. With the non-accountable plan, you do. It sounds like what you are talking about above would be considered accountable, and would not be included in your income.
[[ Question 2) How can I get the IRS to not consider my reimbursements taxable?]]
Have your employer follow the rules for an accountable plan.
[[ As I recall, I would need to spend 20 consecutive business days away from the non-home city. Does this time include vacations and training?]]
Sorry...you've lost me here. Perhaps I don't remember your original post. And I don't know where you have come up with this "20 day" thing. So perhaps I'm confused. But I would suggest that you hunker down with a copy of IRS Publications 463, 529, and 1542. After reading those publications, you'll know everything you want to know about employee business expenses, reimbursements, accountable plans, and all the rest.
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