13. When an employee is reimbursed 100% for business meal expenses under an acco

Question

13. When an employee is reimbursed 100% for business meal expenses under an accountable arrangement, the employee may deduct which of the following?
a. 80% of the meal costs b. 50% of the meal costs c. None of the meal costs d. The cost of the meal e. None of the above 13. When an employee is reimbursed 100% for business meal expenses under an accountable arrangement, the employee may deduct which of the following?
a. 80% of the meal costs b. 50% of the meal costs c. None of the meal costs d. The cost of the meal e. None of the above a. 80% of the meal costs b. 50% of the meal costs c. None of the meal costs d. The cost of the meal e. None of the above a. 80% of the meal costs b. 50% of the meal costs c. None of the meal costs d. The cost of the meal e. None of the above

Explanation / Answer

Answer: Option e. None of the above

When business meal expenses are reimbursed by an employer under an accountable arrangement, the amounts are excluded from the employee’s gross income and are not considered as wages and are exempt from withholding and employment taxes. Hence there is no deduction available to the employee. They are however deductible by the employer as business expenses.

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