Taxes and Exchange Student?

[MKCP5]

We currently have an exchange student at the house. We receive a weekly stipend for taking him in, that is taxable. He has to be driven 20 min each way to school every day. I can't seem to come up with good info on whether or not that mileage is deductible on our taxes. The only thing I found said it was a flat $50 per month deduction, which is a joke!
An info anyone has would be appreciated!

 

[verleniahall]

Is there a tax prep service where you live? normally they can give you advice for free.

 

[pryncess527]

We currently have an exchange student at the house. We receive a weekly stipend for taking him in, that is taxable. He has to be driven 20 min each way to school every day. I can't seem to come up with good info on whether or not that mileage is deductible on our taxes. The only thing I found said it was a flat $50 per month deduction, which is a joke!
An info anyone has would be appreciated!

It seems like the $50 a month limit is for students who stay with you that are not brought in under a qualified international education program -- in that situation, your hosting is treated more like a charitable contribution and capped rather low.

These two IRS documents may help clarify:
http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229664

http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229851

 

[MKCP5]

It seems like the $50 a month limit is for students who stay with you that are not brought in under a qualified international education program -- in that situation, your hosting is treated more like a charitable contribution and capped rather low.

These two IRS documents may help clarify:
http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229664

http://www.irs.gov/publications/p526/ar02.html#en_US_2013_publink1000229851

hmmmm. I wonder what qualifies as a "qualified international program" We are doing this through an educational group, hard to understand

 

[pryncess527]

Yeah, I think I'd seek out a professional on this one if you are going to itemize.

 

[swilshire]

Definitely ask a pro. I wouldn't have expected the stipend to be taxable, since it would be to reimburse you for the costs of providing food, lodging, etc.

Sheila