there are tax implications for receiving reimbursement for travel expenses. In general, reimbursements for travel expenses are considered non-taxable income if they are made under an accountable plan. An accountable plan is one that meets the following criteria

The expenses must have a business connection – This means that the expenses must be incurred while performing services as an employee or on behalf of the employer.

The employee must adequately account for the expenses – This includes providing receipts or other documentation to support the expenses.

Any excess reimbursements must be returned to the employer – If the employee receives more reimbursement than the actual expenses incurred, the excess amount must be returned to the employer.

If the reimbursement does not meet these criteria, it may be considered taxable income to the employee. In this case, the reimbursement would be included in the employee’s gross income and subject to federal income tax, as well as potentially state and local income taxes.

It is important for both employers and employees to ensure that any reimbursements for travel expenses are made under an accountable plan to avoid potential tax implications.