Pub 17

Expenses Paid for Student Living With You 

   You may be able to deduct some expenses of having a student live with you. You
   can deduct qualifying expenses for a foreign or American student who: 

      1.Lives in your home under a written agreement between you and a qualified
        organization as part of a program of the organization to provide
        educational opportunities for the student, 
      2.Is not your dependent or relative, and 
      3.Is a full-time student in the twelfth or any lower grade at a school in the
        United States. 

   You can deduct up to $50 a month for each full calendar month the student lives
   with you. Any month when conditions (1) through (3) above are met for 15 days or
   more counts as a full month. 

   Mutual exchange program. You cannot deduct the costs of a foreign student
   living in your home under a mutual exchange program through which your child will
   live with a family in a foreign country. 

   For additional information, see Expenses Paid for Student Living With You in
   Publication 526, Charitable Contributions. 

Pub 526

Expenses Paid for Student Living With You

   You may be able to deduct some expenses of having a student live with you. You
   can deduct qualifying expenses for a foreign or American student who: 

      1.Lives in your home under a written agreement between you and a qualified
        organization (defined later) as part of a program of the organization to
        provide educational opportunities for the student, 
      2.Is not your dependent or relative, and 
      3.Is a full-time student in the twelfth or any lower grade at a school in the
        United States. 

   You can deduct up to $50 a month for each full calendar month the student lives
   with you. Any month when conditions (1) through (3) above are met for 15 or
   more days counts as a full month. 

   Qualified organization. For these purposes, a qualified organization can be any of
   the organizations described earlier under Organizations That Qualify To Receive
   Deductible Contributions, except those in (4) and (5). For example, if you are
   providing a home for a student through a state or local government agency, you
   cannot deduct your expenses as charitable contributions. 

   Qualifying expenses. Expenses that you may be able to deduct include the cost
   of books, tuition, food, clothing, transportation, medical and dental care,
   entertainment, and other amounts you actually spend for the well-being of the
   student. 

   Expenses that do not qualify. Depreciation on your home, the fair market value
   of lodging, and similar items are not considered amounts spent by you. In addition,
   general household expenses, such as taxes, insurance, repairs, etc., do not qualify
   for the deduction. 

   Reimbursed expenses. If you are compensated or reimbursed for any part of the
   costs of having a student living with you, you cannot deduct any of your costs.
   However, if you are reimbursed for only an extraordinary or a one-time item, such
   as a hospital bill or vacation trip, that you paid in advance at the request of the
   student's parents or the sponsoring organization, you can deduct your expenses for
   the student for which you were not reimbursed. 

   Mutual exchange program. You cannot deduct the costs of a foreign student
   living in your home under a mutual exchange program through which your child will
   live with a family in a foreign country. 

   Reporting expenses. For a list of what you must file with your return if you
   deduct expenses for a student living with you, see Reporting expenses for student
   living with you under How To Report, later.