topic Are EF Tours awarded to teacher chaperones Taxable Income? in Business & farm

Are EF Tours awarded to teacher chaperones Taxable Income?

ixolib67 — Tue, 10 Dec 2019 21:10:29 GMT

I am a teacher considering leading student tours through EF. I get a free tour for recruiting a certain number of paying students to sign up. Is the value of the tour taxable income?

Re: Are EF Tours awarded to teacher chaperones Taxable Income?

DoninGA — Tue, 10 Dec 2019 21:30:34 GMT

IRS Publication 525, Taxable and Nontaxable Income (2018), page 31 - https://www.irs.gov/pub/irs-pdf/p525.pdf#page=31

Free tour. If you received a free tour from a travel agency for organizing a group of tourists, you must include its value in your income. Report the FMV of the tour on Schedule 1 (Form 1040), line 21.

Fair Market Value is what the cost of the tour would be if it was not free.

Re: Are EF Tours awarded to teacher chaperones Taxable Income?

KittyM2 — Tue, 10 Dec 2019 21:46:45 GMT

Yes, all income is taxable, even income that is not cash. You would include the Fair Market Value - what the tour would cost if you had to pay for it - on your tax return.

This type of income is Miscellaneous Income not subject to Social Security and should be reported on Line 21 of your Form 1040, Schedule 1.