taxable benefits question

[mathmomvt]

<p>My DS has an internship this summer which includes free housing. I assume the value of the housing will be considered a taxable benefit. Does this count the same way as earned income for taxes and for FAFSA/Profile, or how does that work? </p>

<p>Thanks in advance!</p>

[entomom]

<p>If it’s treated the same as employment, it depends. I know food and housing for RAs is often not taxable. Here is the link and details:</p>

<p>[Publication</a> 525 (2011), Taxable and Nontaxable Income](<a href=“http://www.irs.gov/publications/p525/ar02.html#en_US_2011_publink1000229090]Publication”>http://www.irs.gov/publications/p525/ar02.html#en_US_2011_publink1000229090)</p>

<p>

Meals and Lodging</p>

<p>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.</p>

<p>The meals are:</p>

<p>Furnished on the business premises of your employer, and</p>

<p>Furnished for the convenience of your employer.</p>

<p>The lodging is:</p>

<p>Furnished on the business premises of your employer,</p>

<p>Furnished for the convenience of your employer, and</p>

<p>A condition of your employment. (You must accept it in order to be able to properly perform your duties.)

</p>

[mathmomvt]

<p>I’m pretty sure it will count as income for him, I did read that publication and don’t think his lodging qualifies not to be counted.</p>