W-2 vs Form 2106
For nonaccountable plans with the following features
If the type of reimbursement (or other
expense allowance) arrangement is under:
Then the employer reports on Form W-2
And the employee reports on tax form 2106
or 2106-EZ
Either adequate accounting or
return of excess, or both, not required by the
plan The entire amount as wages in
box 1. All expenses
For noreimbursement plans with the following
features
If the type of reimbursement (or other
expense allowance) arrangement is under:
Then the employer reports on Form W-2
And the employee reports on tax form 2106
or 2106-EZ
All plans The entire amount as wages in
box 1. All expenses
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