View Full Version : How are stipends for hosting an international student taxed

Jul 22, 2009, 11:24 PM
I host international students who attend a Private High School in the United States.
The host family pays the school for their boarding and the school issues a check to the families.
We are required to room and board the student along with providing transportation and school meals.
In the past no w2 was required and no 1099 issued but I just received notice that I would need to fill out a w2 and all stipends will be reported and a 1099 issued.
Does this get reported as regular income? Is there a way of keeping track of expenses to offset the income?
The amount we receive does not necessarily cover the cost of transportation, food and increased utilities.

Jul 23, 2009, 03:36 AM
The host family may require you to file Form W-9. You will get 1099-misc, which is income as self employed.

You must file your tax return if yourself employed income (after deducting expenses) is $400 or more. You will report your income and expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040. This income is subject to SE tax at 15.3% (this is shown on line 57 of Form 1040). Half of SE tax is deductible on line 27 of Form 1040. Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor (http://taxipay.blogspot.com/2008/04/tax-filing-by-self-employed-sole.html)

Jul 24, 2009, 09:48 AM
Contact the school to find out HOW they are going to report the income on the Form 1099-MISC. If they report it in Box 7, the Schedules C and SE will need to be completed.

However, I suspect it will be reported in Box 3 (Other Income), in which case you can report it on Line #21 of Form 1040.

As to which way is BETTER, you can email me at dpmtax@mail.com for a detailed analysis.