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This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

Content is the opinion of the author and does not represent the position of any other person or entity. Information is from sources believed to be reliable but cannot be guaranteed.

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Business travel expense reimbursement

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email

Q: I reimburse my employees for travel expenses on a tax-free basis. Can this include expenses incurred while on vacation?

A: No, travel expenses that are not for business purposes are regular taxable income, subject to all wage taxes. This could create a tax problem and recordkeeping mess for the employer. This is why most employers require receipts and verify most travel expense reimbursements before making a tax-free disbursement. In the event of audit, the burden is on the employer, not the employee, to show that these payments qualify for tax-free status.


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