Reimbursement Law and Legal Definition

Reimbursement is the act of paying someone for expenses they have paid. For example, in 1996, as part of the Omnibus Consolidated Appropriations Act for Fiscal Year 1997 ("Omnibus Act"), Congress enacted legislation authorizing the reimbursement of "qualified employees" of the government for up to one-half the costs incurred by such employees for professional liability insurance.

Reimbursement occurs in many contexts and is governed by federal, state, and local laws, as well as contract law. Reimbursement may be partial or full payment of expenses incurred. Reimbursement payments may be taxable depending on applicable laws.