Can you write-off any expenses of hosting an exchange student on your taxes?

Question

I am paid a monthly amount by a local school for hosting an exchange student in my home. At year-end I am 1099'd and need to report the amount as taxable income. Can I offset this additional income tax with any write-off of expenses incurred, like for providing food, heat, water, etc.?

Answer 1

Actually, there is a deduction available under some circumstances, if you itemize. See page 152 of IRS Publication 17 under the heading "Expenses Paid for Student Living with You". If you qualify, the deduction would be itemized as a charitable deduction.

Answer 2

Yes, you can write off hosting, and you can write off hiring others. If you paid the other people more than $600 you will have to file a 1099 for them as well - and give them a copy. Basically, you put each sum amount into the correct box in schedule C (the correct box that you think is right is usually right) - and KEEP your personal records that show how it is broken down. So, no, you don't have to list each person individually (the 1099 does that if they made over $600). Nor do you have to list the hosting provider. But you must keep the account book for the year in a safe place for 6-10 years and in IT you must have the individual listings and receipts. EDIT: If the person you hired also has their own company you do not need to fill out a 1099 (like you don't fill one out for your phone bill) - only if they are self-employed and unincorporated.

Answer 3

No. That's why you are getting paid. It costs about $11,000 to support a student for the entire school year according to the exchange industry's estimates. If you were a volunteer then you could deduct $50 for each month but not if you are paid. The IRS won't like that at all.

Answer 4

I doubt it, but check with an accountant.