Cash allowances for meals or lodging generally must be included in the employee's income.

Question

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Cash allowances for meals or lodging are considered taxable income and must be included in the employee's gross income. However, there are certain situations where exceptions apply, such as when the meals or lodging are provided for the employer's convenience or in remote locations where employees can't easily obtain these necessities on their own. In these cases, it's possible that the value of the meals or lodging may be excluded from the employee's income.

Cash Allowances for Meals or Lodging Generally Must Be Included