Benefits taxable?

[fitzpats]

Alright. I'm on another message board and some questions were coming up. I've tried to wrap my brain around it, and the more I think about it, the more I can argue either way. So, I figured that I would ask you guys to see if I can get an answer.

Person works for a company that will reimburse you for certain items under a health and wellness plan. In this case, the guy plays softball and can be reimbursed for the items purchased for the game, such as bats, balls, etc. Is the reimbursement considered taxable income, or is it simply a reimbursement? Any help would be great. Thanks.

[Bees Knees]

If he is an employee of a professional softball team, he can be reimbursed tax free for expenses incurred in doing his job.

If he is a bean counter for ABC corporation that has a section 125 flex plan, and he uses the money out of the 125 plan to buy a softball bat so that he can play with his local bar buddies, it would have to be added to his W-2 as taxable wages.

[winnie]

Bees is just right

I thought from the post that this would be a difficult question about health reimbursement or something like that. This one is clear. No way can reimbursement for ball equipment be deducted UNLESS that is your business. Have had umps that have to have special clothing, but I haven't had any pro athletes!

[LawrenceGR]

Along the line

Is there is a place where reimburstments would show up on a W-2?

[winnie]

If it was listed anywhere, it would be box 14. My guess would be that the employer has already included this in Box 1 wages and your client is not aware of that. If you aren't doing the employer tax returns, you can assume they correctly prepared the W2 unless you see something obviously wrong.

[fitzpats]

I'm assuming that they're getting listed in box one. He says that they reimburse him on the following paycheck and that taxes are being pulled at that point.