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You can enter the rent that your boss paid as additional wages that were not reported on a W-2. You will have to pay the Social Security and Medicare taxes that the employer would have withheld if he had included the rent in your W-2.
The rent amount will be reported on Form 1040 line 1g. Form 8919 will be included in your tax return, with reason code H in column (c). Form 8919 will calculate the Social Security and Medicare taxes. The total of these taxes will appear on Schedule 2 line 6 and will be included in your total tax liability.
Follow these steps to enter the bonus. The first few steps might vary a bit in TurboTax Online, depending on what you have already done.
You can enter the rent that your boss paid as additional wages that were not reported on a W-2. You will have to pay the Social Security and Medicare taxes that the employer would have withheld if he had included the rent in your W-2.
The rent amount will be reported on Form 1040 line 1g. Form 8919 will be included in your tax return, with reason code H in column (c). Form 8919 will calculate the Social Security and Medicare taxes. The total of these taxes will appear on Schedule 2 line 6 and will be included in your total tax liability.
Follow these steps to enter the bonus. The first few steps might vary a bit in TurboTax Online, depending on what you have already done.
I was getting paid partially on payroll and the other part was paid directly from my bosses bank account to my landlords bank account
Sounds to me like you are not the one paying rent; your employer is. Therefore you would have nothing to report concerning this rental.Now if you are the one contracted with the landlord and you are the one legally obligated to pay that rent, then you first have to report the employer's rent payments as taxable income to you. Then you can claim any renter's credit on the state tax return if the state you're in taxes personal income and offers a renter's credit.
@Carl wrote:
I was getting paid partially on payroll and the other part was paid directly from my bosses bank account to my landlords bank account
Sounds to me like you are not the one paying rent; your employer is. Therefore you would have nothing to report concerning this rental.Now if you are the one contracted with the landlord and you are the one legally obligated to pay that rent, then you first have to report the employer's rent payments as taxable income to you. Then you can claim any renter's credit on the state tax return if the state you're in taxes personal income and offers a renter's credit.
If part of the employee's compensation was free housing (the employer paid the employee's rent) that is considered part of the employee's wages and the value of the free housing should have been included on the employee's W-2 and was subject to social security and medicare tax.
The only time that employer-provided housing is not considered part of the taxable compensation is when living in certain housing is a condition of employment -- for example, if the property manager of an apartment complex is required by the owner to live on site and the owner provides a free apartment, that is not part of the employee's taxable compensation. Housing can also be tax-free for certain religious workers (a pastor's parsonage). But almost all the time, if the employer provides housing, that is part of the employee's taxable compensation.
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