I have received 1099-MISC for hosting Chinese student during school year. Where do I enter the expenses in TurboTax for hosting an international student?

[ambertheiss75]

We have kept all receipts from food purchases, internet (required that we have it available for student), increased utilities.  Bottom line is, we certainly did not make any money after hosting the student.

[Tiki · Accepted solution]

You can deduct expenses for hosting a foreign exchange student. However, you must first enter the income information before the system will allow you to move to the associated expenses in the business income section. The agency facilitating the program should have sent out a 1099-MISC; therefore, the income must be entered accordingly. If you have received the form, please follow the steps below to enter the information. 

https://ttlc.intuit.com/replies/4770594

After you enter the 1099-MISC, you will reach the screen, Tell us why you received this 1099-MISC. Answer "I was a freelancer or independent contractor." The next screen will say "Good News! You can deduct expenses..." and the following screens will prompt you to enter your expenses.

[jenniesteele]

I've read a lot indicating that it depends on the situation, and even the tax publications lead me to the same place.  If the student is attending a public government program, then it appears you can not deduct expenses, it is not a business, etc.  They get the $50 charitable deduction, right?  However, many people host through third-party programs, for international students who attend private schools.  From what I see, this is a whole other animal, and I'd like to see more research here about that.  All I have researched has led me to the same place that it was intended to earn money, that it is a business, there is a contractual service being provided, therefore, in all forms, a business arrangement, and business income and related expenses.   These providers receive a 1099 and are responsible for expenses of room setup, technology support, meals, etc.  Can anyone speak to this?

[pattycakescake]

Hello ambertheiss75 & jenniesteele, Did you ever figure out the answer on this one?  I too host Chinese students who come tot he US on a F-1 Visa.  They attend private school. Is the max that we can deduct is $50 per month?   That amount seems low compared to the amount that we collect and the amount of expenses associated with the student.

[jenniesteele]

After much research, it appears when you receive a 1099-Misc for independent contractor work from a third-party entity, and when the student is attending a private school, then the related expenses are deductible.  I know most host families work hard, very hard to support students that they host, and it truly is another job, and for the purpose of making money.  There are benefits, as with most jobs.  However, this is a far different thing than a volunteer hosting position.  The 3rd-party coordinator may have resources for you on this.   Best of luck!