Box 12 of Form W-2 with code L reports substantiated employee business expense reimbursements. If you do not use this expense, the unused amount would be taxed as wages.
To enter the W-2 box 12 amount:
Once you have entered your W-2 data, complete IRS Form 2106 to report employee business expenses. To enter your information for Form 2106 in the TaxAct program:
As you enter your expenses, the amount of the reimbursement will transfer to Line 7 of Form 2106. TaxAct automatically places the amount on Line 7a (reimbursements for expenses other than meals and entertainment).
If you have more expenses for meals and entertainment, then move the reimbursement over to Line 7b (reimbursements for meals and entertainment) on Form 2106, or make the change on the screen titled Employee Expenses – Employer Reimbursements. Enter a zero on Line 7a and enter the reimbursement amount on Line 7b.