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January 19, 2023
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I work in my landlords store and rent a home from him. He is deducting half my paycheck each payday to pay rent. Is the money he deducts considered income for me?

  • January 19, 2023
  • 2 replies
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Best answer by rjs

Yes, it's income. It's part of your pay. It's the same as if you lived somewhere else, got your full pay, and then wrote a check for your rent. It doesn't matter that the rent is going to your employer. Getting paid for working in the store, and paying your rent, are two separate transactions.

 

2 replies

rjs
rjsAnswer
Employee
January 19, 2023

Yes, it's income. It's part of your pay. It's the same as if you lived somewhere else, got your full pay, and then wrote a check for your rent. It doesn't matter that the rent is going to your employer. Getting paid for working in the store, and paying your rent, are two separate transactions.

 

Hal_Al
Employee
January 19, 2023

How is your landlord going to report your income, for tax purposes; W-2, 1099-NEC or just leave it up to you to report it?  If a W-2, he should include the total amount paid (before the rent deduction) in box 1 of the W-2.