Research subject reimbursement must include documentation of costs incurred by the research subject to be categorized as reimbursement.  Research subject reimbursement is not considered compensation for tax reporting purposes if certain conditions are met.  Appropriate categories of reimbursement include:

• lodging
• food
• gas
• parking
• transportation
• mileage (consistent with IRS per diem rates)

To qualify as reimbursement, appropriate supporting documentation must includes receipts for any of the above identified categories.  The University of Iowa considers fixed amounts issued to research subjects as compensation and is not considered reimbursement without appropriate supporting receipts of costs incurred.  Additional information on research subject compensation can be found under the Research Subject Compensation section of the HSO website.

The party issuing funds to the subject bears the responsibility for the tax liability and tax reporting.  The University of Iowa Grant Accounting Office will issue 1099 forms as appropriate for research subject compensation that meet reporting thresholds.  Reimbursement does not require tax reporting.  The University of Iowa does not bear the burden for tax reporting when Sponsors or 3rd-Party Payors provide subject payments when cash or cash equivalents are not handled by any University of Iowa faculty, staff, or students. 

A compensation and reimbursement matrix is available to assist in determining when monies paid to research subject is considered compensation or reimbursement.  This matrix also delineates tax reporting obligations.