Certain categories of benefits on Twic are considered taxable benefits as required by IRS regulations (see IRS Publication 15-B).
These are the common benefits governed by this regulation:
- Parental Support
- Cell Phone
You will only be taxed on the amount you receive under the program, and the amount will be included in your income for tax reporting and withholding purposes.
Taxation By Spending Method
Any amount spent through your Twic account is governed by the same regulation above. This includes:
- Twic Store
- Twic Card
- Reimbursement Claims