Will not owning or renting hurt us?

Paying for College
1

<p>New to this, first child a rising senior. Been lurking on this page but finally decided to post.</p>

<p>My husband is a director of a boarding school. As part of his job we live rent free in a home owned by his employer. So we do not own a primary home nor do we pay rent. Is this something that will end up hurting us? On paper we do not show a high income because his salary is lowered as a result of having this home to live in. I will be needing to fill out the FAFSA as well as the CSS for one of the schools my daughter is interested in and I think I have read they each treat home ownership differently. Any help or advice is welcome as I try and figure out what is in store for us.</p>

2

<p>Are you sure that the rent benefit isn’t included somehow by your husband’s employer? Sometimes it is.</p>

<p>There is no harm in not owning a home…or not renting a home. For financial aid purposes, this won’t matter.</p>

3

<p>It isn’t. His annual salary is comparitively low for his position based on the fact that they let us live here in the house they own. So on the W2 it doesn’t look like we make a large salary. They pay for all the maintenance and utilities as it is their house not ours. </p>

<p>Thank you for that info, I’ve often wondered if this would be a factor.</p>

4

<p>It seems like it would work in your favor.</p>

5

<p>He’s not taxed on it if it is a condition of his employment that he live in the house, which it sounds like it is. It is not income.</p>

6

<p>It is subject to social security taxes if it is provided by the employer. It is also included on the FAFSA (I think but can’t remember it goes on the line for unreported income). At least that’s how parsonages work, and this is the same type of employer provided housing.</p>

7

<p>Whether it is subject to SS and Medicare taxes depends on if the lodging is on the business premises and is furnished for the employer’s convenience and is a condition of employment:</p>

<p><a href=“http://www.irs.gov/pub/irs-pdf/p15b.pdf”>http://www.irs.gov/pub/irs-pdf/p15b.pdf&lt;/a&gt;&lt;/p&gt;

<p>See Table 2-1 on page 6</p>

8

<p>Clergy may have the same conditions when their housing is included.
Does he pay self employment tax?
Then he would need to include fair market value of the housing in net earnings.
Id consult your accountant.</p>