# Reimbursement vs deduction

> The difference between getting paid back by the company (reimbursement) and subtracting from tax (deduction).

**URL:** https://quilometragem.com/glossary/reimbursement-vs-deduction

**Summary:** The difference between getting paid back by the company (reimbursement) and subtracting from tax (deduction).

- Reimbursement is the payment a company makes to an employee to refund expense incurred at work — it is not taxable income if properly documented.
- Deduction is the reduction in taxable income allowed to self-employed and companies.
- Someone who receives reimbursement from the company cannot also deduct the same expense — that would be double-dipping.
- The receipt supports either scenario, but only once.

Reimbursement is the payment a company makes to an employee to refund expense incurred at work — it is not taxable income if properly documented. Deduction is the reduction in taxable income allowed to self-employed and companies. Someone who receives reimbursement from the company cannot also deduct the same expense — that would be double-dipping. The receipt supports either scenario, but only once.