Is room and board taxable?

[Frustrated]

My son just got a job that included room and board. Is that taxable? Would it be on his W2 or something else? thanks

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[Arthur Rubin]

On Wednesday, April 19, 2017 at 9:26:12 PM UTC-7, Frustrated wrote:
> My son just got a job that included room and board. Is that taxable? Would it be on his W2 or something else? thanks

If he is required to take the room, and "board" is limited in value, it is non-taxable for income tax purposes. It may still be taxable for FICA taxes or other employment taxes.

--
Arthur Rubin, AFSP, CRTP, Brea, CA

[Frustrated]

On Thursday, April 20, 2017 at 8:51:47 AM UTC-4, Arthur Rubin wrote:

>
> If he is required to take the room, and "board" is limited in value, it is non-taxable for income tax purposes. It may still be taxable for FICA taxes or other employment taxes.
>

Yes, supervising the dorm is part of his duties; so he is required to live there.
Board is 3 meals a day; it has some value.

[Stuart O. Bronstein]

Frustrated <wa...@lippman.info> wrote:
> Arthur Rubin wrote:
>
>> If he is required to take the room, and "board" is limited in
>> value, it is non-taxable for income tax purposes. It may still
>> be taxable for FICA taxes or other employment taxes.
>>
> Yes, supervising the dorm is part of his duties; so he is required
> to live there. Board is 3 meals a day; it has some value.

It has some value, but dorm meals are not extravagant. In your son's
case neither the lodging nor the meals should be taxable.

--
Stu
http://DownToEarthLawyer.com

[Alan]

On 4/19/2017 9:25 PM, Frustrated wrote:
> My son just got a job that included room and board. Is that taxable? Would it be on his W2 or something else? thanks
>

Section 119 of the Internal Revenue Code and its regulations contain the
law on excluding lodging and meals.

Lodging requires passing 3 tests.
1. Must be a requirement of the job. For your son, if the only way he
could get the job was agreeing to live in employer provided housing, he
passes.
2. The living quarters must be on the employer's business premises. For
your son, living on campus passes that test.
3. It must be for the convenience of the employer not the employee. A
good way to explain this is: if the employer provided any option such as
live on campus or off campus and if you choose off-campus, here is $1000
month for rent...... you fail the test even if you elect to live on campus.

It sounds as though the job your son took probably passes those 3 tests
although you have not provided any evidence to that effect.

Meals: To exclude meals they have to be provided on the employer
premises (he passes if the meals are provided on campus) and they must
be provided for the employer's convenience. In this instance, this is
defined as being for a "substantial noncompensatory business reason."
It doesn't matter what this means because if the employer requires as a
condition of employment that you son live on campus, by legal definition
in the regs, the meals are for that purpose and can be excluded from income.

[Frustrated]

On Thursday, April 20, 2017 at 12:26:12 AM UTC-4, Frustrated wrote:
> My son just got a job that included room and board. Is that taxable? Would it be on his W2 or something else? thanks
>
> --

Thanks all. That will save a couple thousand; nice to get a break on taxes for a change.