As we know, for Federal purposes, an employee who receives reimbursement for medical expenses under a medical reimbursement plan is not taxed on that reimbursement (provided it's a group plan). Also true for State of Pennsylvania purposes? Probably not, but I'm just checking if anyone may know off the top of their head. Thanks.
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I found this at the PA Dept. of Revenue website: http://www.revenue.state.pa.us/reven...A=238&Q=234622
According to this, the reimbursements would not be taxable, which is a surprise to me. I do not know if this has changed since this ruling. Hope this helps. -
Ty
Thank you KBTS. It appears what the link is saying is that to the extent the employee is paying for the medical expenses themself (via payroll withholding); then medical expense reimbursements to that extent are not taxable. My question goes above and beyond that asking is outright reimbursement to the empployee for medical expenses (whether on or off payroll) taxable for PA purposes (given they are not taxable for Fed purposes) Thanks for the link as it helps hash through this in thinking it all over.Comment
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Glad to help. You might find some more information in chapter 7 of the PA PIT Guide http://www.revenue.state.pa.us/reven...chapter_07.pdfComment
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