How Does Taxation Work? (U.S. only)

IRS regulations

Benefits money you spend on eligible items are considered taxable as required by IRS regulations. (See IRS Publication 15-B.)

Common benefits under this regulation include:

1. Wellness
2. Work From Home
3. Lifestyle

You will only be taxed on the amount you spend on eligible items (the total amount reimbursed), and the amount will be included as part of your income for tax reporting and withholding purposes.

Taxation by spending method

Any spending method used to purchase eligible items with Forma benefits money is governed by the same regulation above. This includes:

1. Forma Store*
2. Forma Card*
3. Reimbursement claims

*If available as a spending method.

Note: Taxation policies may vary by employer, review your employer’s benefits policy for details. For questions regarding international taxation, reach out to your employer’s HR or benefits department.