Feb
09

Are housing stipends taxable?

Category: Stipend Questions

Housing stipends provided to employees as a part of their compensation package are generally considered taxable income by the Internal Revenue Service (IRS) in the United States. This means that the employee must include the value of the housing stipend as part of their taxable income and pay federal income tax on it. However, there are some exceptions for certain types of housing allowances provided to specific groups, such as members of the military, clergy, and foreign service employees. It’s always a good idea to consult a tax professional or the IRS for more information on specific tax rules and regulations. Here is a good example the IRS gives for a minister getting a housing allowance.