Expert: John Kirk, CPA Date: 7/23/2008 Subject: Tax on Housing
Question I have worked at a public university for 18 years as the Director of Facilities. As part of the requirement for the position, I am required to live on campus in a university provided house. The current administration has made the decision to now reduce my base salary and the amount would be considered as payment for the housing. Also, this is being shown as taxable income to me but is not used to contribute to my state retirement. If living in the house is a requirement for the position, how can I be charged for the housing? And why wouldn't it be considered toward my retirement?
Thanks,
Lonnie Johnson
Answer Employer provided housing is considered compensation to you even though you are required to stay on campus.
The amount of rent that is given to you as compensation should be deducted on form 2106 as employee expense.
As far as being eligible for retirement, that is a matter that should be addressed in your Summary Plan Description and an attorney in your state should be able to address those questions.
