summer temporary housing

[Gettingitdone]

My daughter completed a research expetience for undergraduates this summer in another state away from home. She was given a stipend and free houding on campus. I know the stipend is taxable but how about the housing? it was temporary away from her place if residence is it taxable?

[Opus 17]

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?

[Gettingitdone]

The school hasnt said if the housing is taxable, but they didnt charge her for housing. I made a note of how much housing cost for regular summer students in case we have to report it.

[Opus 17]

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@Gettingitdone wrote:

The school hasnt said if the housing is taxable, but they didnt charge her for housing. I made a note of how much housing cost for regular summer students in case we have to report it.

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Did she get a W-2?  I would kind of expect the housing to be included if the university had determined it was taxable?  Or, if she filled out a W-9 and expects to get a 1099-MISC, the school should know if they plan to include housing.

Either way, if you don't get any paperwork on it, I feel safe to ignore the issue.

@Hal_Al  can you confirm that the housing associated with an undergrad research experience is non-taxable?  I think it should be but don't know where to look for confirmation. 

[Hal_Al]

Q. Hal_Al, can you confirm that the housing associated with an undergrad research experience is non-taxable?  

A. No. It's a gray area and hinges on whether  the housing is provided as part of the research project ("a condition and requirement of employment"). An argument could be made that it was.  That said, I agree with the comment,  if you don't get any paperwork (the value of the housing is not included  on a W-2 or 1099),  feel safe to ignore the issue.

A somewhat comparative situation is a student scholarship for room and board. The value of the room and board in usually included in box 5 of the 1098-T. But if the student gets free room because he's an RA (resident assistance), the value is usually not shown in box 5, because it's not taxable.