Does the motel give you any tax form, like a 1099-Misc, 1099-B or W-2.?
If yes, then it's taxable.
If not, it's not so clear. In general you have a barter arrangement, and that is usually taxable. The amount you report as income is the fair market value of the discount. That would be the difference between the lowest rate charged to customers and what you pay.
There are two ways to report it. If you want it to count as Earned Income (wages) so you can get the Earned Income Credit (EIC), enter it as self employment (Business income). But then, you will have to pay social security tax 0n the income.
Other wise, In TurboTax (TT), enter at:
- Federal Taxes tab
- Wages & Income
Scroll down to:
-Less Common Income
-Misc Income, 1099-A, 1099-C
- On the next screen, choose – Bartering income not already reported
It will go on line 21 of form 1040, as "Other Income".
