How are expenses and reimbursements treated under an accountable plan? Under an accountable plan, if the reimbursement is equal to the expenses the reimbursement is not reported on the employee's lax return. The expenses are deductible by the employee as a deduction for AGI. the reimbursement must be included in the employee's gross income and the expenses are deductible by the employee as a miscellaneous itemized deduction from AGI subject to the 2% nondeductible floor. neither the reimbursement nor the expenses are reported on the employee's return. the reimbursement is reported on the employee's tax return. The expenses are not deductible by the employee. How are expenses and reimbursements treated under a nonaccountable plan? Under a nonaccountable plan, the reimbursement must be included in the employee's gross income and the expenses are deductible by the employee as a miscellaneous itemized deduction from AGI subject to the 2% nondeductible floor. the reimbursement must be included in the employee's gross income and the expenses are deductible by the employee as a miscellaneous itemized deduction for AGI. the reimbursement and the expenses are reported net on the employee's return. the reimbursement must be included in the employee's gross income and the expenses are not deductible by the employee