# Non-accountable plan

> Reimbursement or allowance that fails the accountable-plan tests and is taxed as wages.

**URL:** https://quilometragem.com/glossary/non-accountable-plan

**Summary:** Reimbursement or allowance that fails the accountable-plan tests and is taxed as wages.

- A non-accountable plan is any expense payment that fails the IRS three-test framework (e.g., a flat US$600/month vehicle allowance with no per-trip substantiation).
- The full amount lands in the W-2 as wages subject to withholding, FICA, and Medicare.
- The employee can try to deduct actual expenses, but the TCJA suspends unreimbursed employee deductions for most filers through 2025.

A non-accountable plan is any expense payment that fails the IRS three-test framework (e.g., a flat US$600/month vehicle allowance with no per-trip substantiation). The full amount lands in the W-2 as wages subject to withholding, FICA, and Medicare. The employee can try to deduct actual expenses, but the TCJA suspends unreimbursed employee deductions for most filers through 2025.