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What does the school say?

 

Generally for W-2 employees, free housing is a taxable fringe benefit unless the housing is provided as a condition and requirement of employment (like, an apartment manager required to live on site; or, if a firefighter is required to live in the firehouse for a 24 hour shift and is provided free food, that is not taxable).

 

Students are often covered under other rules.  For the stipend, your daughter should be provided a 1099-MISC, not a 1099-NEC.  This is not self-employment income, it's a fellowship, and even if the school reports it on a 1099-NEC, she should report it as a fellowship.  It's taxable income, but is not subject to self-employment tax because a learning fellowship is not considered "working".

 

That being said, I am pretty sure the free housing is not taxable.  Has the school suggested one way or the other?