IRS regulations and temporary housing question. Is my boss lying to me?

Question

I am starting work at a new company in a different state ( MD ) , and the company is setting me up at a hotel for 2 or 3 weeks. My boss claims that "IRS regulations require you to claim the cost of temporary housing on your W2 as income received (even if we pay the bill directly)"

Is this true? How am I getting taxed if they pay the hotel directly? I would understand if they gave me cash and told me to pay, but they are paying it themselves.

Answer 1

It's income.  You are moving to a new area.  Once you get there, it's your tax home and all housing is a personal expense.

If your company helps you with a personal expense, they MUST include it in your wages.  Your benefit is that instead of paying $100/night out of your own pocket, you are paying $25/night in higher taxes.

Publications 521, 463, 15, etc.

Answer 2

Income does not have to be cash paid to you.  Your boss is correct.    The value of your temporary housing provided by your employer is taxable income to you.

If the hotel bill is is very large, you might want to speed up getting your own place.

Answer 3

Your boss is correct.

Answer 4

YOU ARE RECEIVING 'IN KIND' AND THEREFORE YOU ARE LIABLE FOR IT. YOU MIGHT ALSO CHECK INTO ANY OTHER LIABILITIES SUCH AS e.g. FOOD.