Paid 1099-misc other income for exchange student, expenses?

[nwtaxlady]

Client is being paid $800 a month for having this exchange student. She received a 1099 for OTHER income $4800 for 2021. I have never come across this before.
Can she take any expenses, and what? Is it reported on C or E? And what expenses can she take? TIA.

[Uncle Sam]

While I can't address the taxation of 1099-MISC for exchange students there is a charitable donation deduction - up to $ 50 per full calendar month for student living expenses for living in your home if you meet certain conditions. See TTB P. 4-16

[kathyc2]

I've done them both as other income on what used to be line 21, and a Sch C. I explain to clients the total amount taxable, or the net amount taxable plus potential SE tax and let them decide if they want to come up with expenses. Expenses would be out of pocket that was paid by having the student such as activities, dining out, portion of groceries, miles driven for the student only, etc.

[TaxGuyBill]

You need to determine if this is a "trade or business" or not. A large factor of that would be "Is there a profit motive?" (which would also include effort to make/increase a profit).