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mariaanceney
Joined: 07 Jan 2011
Location: 840 UNITED STATES
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 Posted: Sat Mar 05, 2011 4:22 am Post subject: Is housing allowance supposed to be taxed? |
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Hi,
I'm wondering if it's common for housing allowance to be taxed? I guess it makes sense, but shouldn't the school compensate for the fact that you'll be taxed on the housing allowance?
Right now I'm making 2.3 with a 500,000 housing allowance so I'll be taxed at 2.8. Does anyone know how much that will equal out to? Also, if they are taxing me at 2.8 shouldn't my severance and pension be based off 2.8 as well? |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Sat Mar 05, 2011 4:51 am Post subject: Re: Is housing allowance supposed to be taxed? |
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| mariaanceney wrote: |
Hi,
I'm wondering if it's common for housing allowance to be taxed? I guess it makes sense, but shouldn't the school compensate for the fact that you'll be taxed on the housing allowance?
Right now I'm making 2.3 with a 500,000 housing allowance so I'll be taxed at 2.8. Does anyone know how much that will equal out to? Also, if they are taxing me at 2.8 shouldn't my severance and pension be based off 2.8 as well? |
Your income is 2.3 mil for purposes of pension and severance and health insurance. Your housing allowance is not income for those purposes, however it is reportable and taxable for income tax purposes. If the school provides your housing it is not taxable. |
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