Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello and thank you for using Just Answer,
Personal Income Tax (PIT) wages are cash and noncash payments subject to state income tax. (Wages that must be reported on an individual’s California income tax return are PIT wages.) Most payments for household employees’ services should be reported as PIT wages.
To calculate the value of lodging, multiply the amount you could rent the property for (ordinary rental value) by 66 2/3 percent (0.6667). Ordinary rental value may be calculated on a monthly or weekly basis. The table below shows the minimum and maximum amounts to report for lodging.Value of LodgingYear Minimum per Week Maximum per Month2013 $ 39.90 $ 1,2242012 $ 39.10 $ 1,2062011 $ 38.70 $ 1,1932010 $ 38.60 $ 1,190
CA FTB has a handy booklet for Household employershttp://www.edd.ca.gov/pdf_pub_ctr/de8829.pdf
By month it would be $804.04 (1206 x .6667)
By the minimum per week would be $26.08 (39.10 x .6667)
If you were to rent the room a fair market value it cannot be for less than the Week amount published by the FTB and not more than the Max per month.