summer temporary housing

Forum|Forum|1 year ago
August 30, 2024
1 reply
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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?

Not A Product Question

Opus 17

Level 15

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?

GettingitdoneAuthor

Level 2

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

Level 15

@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.

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.