Living Expense

[rwm221]

I have a client who works for a non-profit. She is not paid a salary or paid hourly; she receives a living expense every 2 weeks. She received a W2 is with no taxes taken out? I know nonprofits like the peace core funds received for living expenses are not taxable. I also have a client who receives a w2 but we use notice 2014-7 to exclude his W2 wages. Is there any way to exclude this amount from her income? She has another W2 from a company she worked for before starting to work for the nonprofit.


Thank You

[TaxGuyBill]

You haven't directly mentioned anything that would make her income non-taxable.

What exactly are "living expenses" that she is being paid? How is that different than just receiving a salary? A W-2 indicates it is taxable wages/salary.

Are there not even Social Security and Medicare wages withheld?

What type of nonprofit is it? And why does she supposedly work for no pay, but only received "living expenses" (although as I said, it seems like wages/salary to me)?

[rwm221]

The Be Kind People Project? (BKPP) is a public 501 (c) 3 non-profit. Her W2 has SS Medicare and state taxes paid. Every 2 weeks she receives the same amount and it is called a living expense. I just wanted to know if there is anything I could do for her.

[New York Enrolled Agent]

I just wanted to know if there is anything I could do for her.

Sure there is - do her tax return properly. She is being compensated. You can call it anything you want but it is taxable income. This is not a parsonage allowance where certain "living expenses" may be includable under section 107. You yourself said she "works" for the non-profit.