Yes ; Amounts paid under a non-accountable plan are income to the employee and must be included in wages with appropriate tax withholdings. as your employer uses a non-accountable plan and reimburses you for your expenses (or gives you an allowance), these payments are usually included on your W-2 as income. If the payments aren't included on your W-2, it's your responsibility to report them as income on your tax return. Either way, you're taxed on the reimbursements as income. So, you deduct the qualifying business expenses, that way you're only taxed on your true salary and wages; so,to deduct workplace expenses, your total itemized deductions must exceed the standard deduction. You must also meet what?s called "the 2% floor." That is, the total of the expenses you deduct must be greater than 2% of your adjusted gross income, and you can deduct only the expenses over that amount. |