Meal Reimbursement Is Taxable Income

Q: I work for a large law firm that reimburses staff members $15 for meals if they work 2 1/2 hours over their normal time period.

I notice that when I put in for reimbursement, taxes are taken out. Isn’t this double-taxed money?

--D.V., Long Beach

A: No. Reimbursement for meals is considered to be supplemental wages, or a taxable fringe benefit. The amount of reimbursement is included in gross income under Internal Revenue Code Section 119. Taxes are withheld on the amount of the reimbursement.

--Judith Golden

Public Affairs Director

Internal Revenue Service

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