Question:
A teacher in a foreign country was provided with "free" housing and food. Does this teacher need to report this as income for tax purposes?
Answer:
Publication 525 says the following:
"You do not include in your income the value of meals and lodging provided to you and your family by your employer at no charge if the following conditions are met.
The meals are:
A teacher in a foreign country was provided with "free" housing and food. Does this teacher need to report this as income for tax purposes?
Answer:
Publication 525 says the following:
"You do not include in your income the value of meals and lodging provided to you and your family by your employer at no charge if the following conditions are met.
The meals are:
-
1. Furnished on the business premises of your employer, and
- 2. Furnished for the convenience of your employer.
-
1. Furnished on the business premises of your employer,
- 2. Furnished for the convenience of your employer, and
3. A condition of your employment. (You must accept it in order to be able to properly perform your duties.)"
"However, whether meals or lodging are provided for
the convenience of the employer depends on all of the facts and
circumstances. A written statement that the meals or lodging
are for your convenience is not sufficient."
If these conditions are not met, then the value of the food and housing are considered taxable compensation and must be reported as such.
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