W-2 includes room and board

[Openfire]

I have a client who worked at a camp. They included room and food in his W-2. I know that a college RA does not have taxable wages from room/board, as it it to the benefit of the college or employer. Is this the same? Has anyone dealt with one of these?

[ChEAr$]

I have a client who worked at a camp. They included room and food in his W-2. I know that a college RA does not have taxable wages from room/board, as it it to the benefit of the college or employer. Is this the same? Has anyone dealt with one of these?

Unless there was a note on the W2 to the effect that "room and board" included, all you know is what client told you, and he may consider that to be the case. No matter what they paid him, that's what's taxable, no?

[Bees Knees]

Room and board is taxable as wages under the general rule. The exception is found in IRC §119. Under that code section, room and board (meals and lodging) are tax-free if:
• It is furnished on the employer's business premises.
• It is furnished for the employer's convenience.
• In the case of lodging only, the employee accepts it as a condition of employment.

(see TTB page 13-31)

Thus, if the employee worked at a camp, and the campground was not the employer's business premises (such as a private for-profit business taking kids to a national or state park campground for summer camp), then the lodging is taxable.

Or if the employee was not required to stay at the camp as a condition of employment, such as a local employee allowed to drive home after work, then the lodging would be taxable. A cook, for example, would not be required to stay at the camp for the employer's convenience, even if the cook lived a long way away. Really, only the camp counselors in charge of keeping watch over the kids 24/7 would be required for the employer's convenience to stay at the camp overnight. None of the other camp employees would fall into that category.

[oceanlovin'ea]

Ranch hand

Many, many years ago I had a young man come into Block office. He had several years of W-2's to file. He worked on a cattle ranch out west. room and board was considered his wages. I can't remember if that was his only pay or if he received a small monetary compensation. But he ended up owing a lot of money because no withholding on any of it. Can't remember where we found information now.

Linda, EA