Re: FICA on student housing? Surprenant, James M. 28 Apr 2009 10:02 EST
Hi Pamela, In many most instances the individual tax code deems 'gifts' to be taxable - John's best bet is probably going to be student exemption on FICA... Take care! James JAMES M. SURPRENANT, MBA Department of Surgery BRIGHAM AND WOMEN'S HOSPITAL Tel: 617-525-7409 ¨ Fax: 617-525-7723 -----Original Message----- From: Research Administration List [mailto:xxxxxx@hrinet.org] On Behalf Of Pamela K Mott Sent: Tuesday, April 28, 2009 10:14 AM To: xxxxxx@hrinet.org Subject: Re: [RESADM-L] FICA on student housing? Certainly am not a tax professional, but couldn't the provision of housing be set up as a "gift" to the students provided by the federal grant? -----Original Message----- From: Research Administration List [mailto:xxxxxx@hrinet.org] On Behalf Of Surprenant, James M. Sent: Tuesday, April 28, 2009 9:04 AM To: xxxxxx@hrinet.org Subject: Re: [RESADM-L] FICA on student housing? Strictly my opinion as its been years since I've worked as a tax professional, but... A) FICA is typically assessed against non-cash earned income or fringe benefits such as housing. The value of the housing would be 'imputed income' - in other words, you would calculate the FMV of the housing and use that figure to calculate social security taxes to be withheld on it. (Income tax is not withheld on imputed income.) However... B) It sounds like this would qualify as a student exemption to FICA - check out IRS Pub 17 - you can find the relevant section I'm thinking about here: http://www.irs.gov/charities/article/0,,id=120663,00.html Best of luck, James JAMES M. SURPRENANT, MBA Department of Surgery BRIGHAM AND WOMEN'S HOSPITAL Tel: 617-525-7409 ¨ Fax: 617-525-7723 -----Original Message----- From: Research Administration List [mailto:xxxxxx@hrinet.org] On Behalf Of John McCann Sent: Tuesday, April 28, 2009 9:42 AM To: xxxxxx@hrinet.org Subject: [RESADM-L] FICA on student housing? I would appreciate help with with this question:: With a congressional earmark, we are running a five-week residential college preparatory experience for low income, first generation high school students. They will spend five weeks in our dorms (housing cost paid by the grant) and engage in research and other activities with our students and professors. Our business office insists that the students' housing cost is subject to FICA, since the payment for housing (which is transferred directly to our housing office from a grant account) counts as income. This seems absurd to me. What do you think? -- John McCann, Ph.D. Assistant Dean for Faculty Development and Sponsored Programs Provost's Office Southwestern University P.O. Box 770 Georgetown, Texas 78627 Phone: 512-863-1233 Fax: 512-863-1262 ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ====================================================================== The information in this e-mail is intended only for the person to whom it is addressed. If you believe this e-mail was sent to you in error and the e-mail contains patient information, please contact the Partners Compliance HelpLine at http://www.partners.org/complianceline . If the e-mail was sent to you in error but does not contain patient information, please contact the sender and properly dispose of the e-mail. ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ====================================================================== ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ====================================================================== ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ======================================================================