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Foreign Housing Exclusion Question (Both employer-furnished housing AND THEN changed to housing stipend cash paid)

Forum|Forum|2 years ago
September 2, 2023
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I have a question for this page (see screenshot).

For the first part of the year, I had foreign employer-provided housing which I inputted the amount on a previous page that said the fair value of the housing.

For the second part, I received a HOUSING ALLOWANCE (CASH STIPEND) in lieu of housing. I inputted this on another page which showed money paid in cash for "Quarters" by the foreign employee.

For the Foreign housing expenses, do I only include the first part (value of the foreign employer-provided housing)? Or the combination of both the employer-provided housing market value AND the CASH provided in the housing allowance (cash stipend)? I didn't fully use the cash stipend directly for rent or whatever and I don't want to itemize all of the other things on there (utilities, taxes, etc.).

For now, I just put the foreign employer-provided housing only. But, if I need to add the housing allowance (cash stipend) to it, I can.

Is it maybe even my choice since it's an exclusion? Thanks in advance!

Best answer by pk12_2

@shanesnh , all the amounts received from your employer ( whether as wages , cash stipend, in-kind benefits etc. ) has to be accounted and taxed somewhere.

In your particular situation , your housing expenses that you are trying toto exclude , includes FMV of the housing provided, amounts that you incurred directly -- with NO employer participation and any cash / re-imbursements provided by your employer for housing purposes. Thus your housing expenses include rent paid by the employer on your behalf AND cash that the employer provided to you for purposes of housing purposes --- even though as you commented , you did not spend all that in housing ( it is simpler to include this as part of housing or you have add the non-spent amount as part of your wages .

Does this make sense ? For reference take a look at the instructions for form 2555 at www.irs/gov and of course Pub 54.

Is there more I can do for you ?

A

Anonymous_

Employee

I will page Champ @pk12_2 for this question as well as your other question. Please stand by.

S

shanesnhAuthor

Thanks 🙂

P

pk12_2Answer

Employee

@shanesnh , all the amounts received from your employer ( whether as wages , cash stipend, in-kind benefits etc. ) has to be accounted and taxed somewhere.

In your particular situation , your housing expenses that you are trying toto exclude , includes FMV of the housing provided, amounts that you incurred directly -- with NO employer participation and any cash / re-imbursements provided by your employer for housing purposes. Thus your housing expenses include rent paid by the employer on your behalf AND cash that the employer provided to you for purposes of housing purposes --- even though as you commented , you did not spend all that in housing ( it is simpler to include this as part of housing or you have add the non-spent amount as part of your wages .

Does this make sense ? For reference take a look at the instructions for form 2555 at www.irs/gov and of course Pub 54.

Is there more I can do for you ?