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Old 02-04-2010, 06:13 PM
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Should I report this as income?

My wife works one day a week in the office of a private school where my kids attend. She is not paid any money but we do receive a small discount on the tuition for my kids. She receives no statements or tax documents from the school. Do I need to report the amount of tuition discount as income on our joint tax return? Thanks in advance for the response.



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Old 02-04-2010, 11:04 PM
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This appears to be a barter transaction in my opinion! Generally speaking, a taxpayer should report the value of the barter transaction, in this case the discount in the child's tuition and report this as a miscellaneous income subject to Social Security Taxes.

But, then you should discuss this with your CPA to determine whether this is a material transaction from a tax point of view!

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Old 02-04-2010, 11:59 PM
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Thank you!



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