Accepted Answer

Hello lewiew,

Any fringe benefits which you receive are fully subject to tax, unless the law specifically excludes the type of benefit you will be receiving. A housing allowance is not excluded, and is therefore fully subject to tax. The housing allowance paid to your wife will be included in her total taxable income for the year.

There are only two exceptions to groups who will not owe tax on housing benefits:

1. Housing benefits paid to an ordained minister
2. The value of housing provided to an employee who is required to live on the business premises (example would be camp counselor, resident apartment manager, etc.)

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Thank you lewiew, and let me know if you have more questions.

Expert:	Merlo
Pos. Feedback:	99.8 %
Accepts:
Answered:	9/11/2009

Accountant

25+ years tax consulting. Specializing in returns for US citizens living abroad