My employer provided housing.Cost for the housing was in each paycheck as an entitlement and immediately deducted. Amount included in wages on my w2.How do I list this?

Employer provided housing overseas.  Housing was included in my pay as entitlement, then immediate deduction.  This amount is included as part of my total wages for the year on my w2.  Greatly increases my AGI.  How do i report it as not being part of my income?

Answer

Sorry, it is included in your taxable income.

Anything you receive of value for performing work for your employer is part of your taxable income, unless it falls into one of the categories of benefits with tax privileges (like medical insurance). That includes the value of employer-provided housing.   

There is an exception if the employer requires you to live on their premises.

When an employer provides housing or lodging for an employee, the employee may be able to exclude the value of the lodging from gross income. The lodging must meet three tests under Regs. Sec. 1.119-1(b): (1) The lodging must be on the employer's business premises; (2) the employer must provide the lodging for the employer's convenience rather than for the employee's convenience; and (3) the employer must require the employee to accept the lodging as a condition of employment. Thus, the employee must need to live in the lodging to be able to perform the duties of the employment.


Before the tax reform act of 2018, employees could deduct housing costs for some kinds of temporary assignments.  However, this deduction was eliminated in the tax reform act.  So you owe the tax on the value of the housing.  On the bright side, paying 22% of your rent is better than paying 100% of your rent.

Was this answer helpful? Yes No
Original
SuperUser

No answers have been posted

More Actions

People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Do you still have a question?

Ask your question to the community. Most questions get a response in about a day.

Post your question to the community
Default