Inform Tax Department of Summer Housing Allowances Paid Outside of Payroll - 06/22/10

The Tax Department requests notification from departments that provide housing as part of a “summer internship,” “summer fellowship” or similar program.

Such housing may be considered taxable income by the Internal Revenue Service, and the University may have an obligation to report and possibly withhold tax on this type of revenue.

Examples are programs where a fellow receives a living or housing allowance payment, is housed on campus at no charge, or housed off campus with the department directly paying a lessor. This would not pertain to summer camps or conferences, where participants pay registration fees that cover the cost of housing.

Staff who believe they have an applicable situation may contact the Tax Department for further review.