Why StudentRoomStay Reports Host Stipends on Form 1099-NEC?
StudentRoomStay provides Form 1099s to qualifying host families who earn $600 or more in host stipends.
Some hosts have asked why their stipend is reported on Form 1099-NEC (“Nonemployee Compensation”) rather than Form 1099-MISC (“Miscellaneous Income – Rents”). This article explains the difference and why StudentRoomStay follows the 1099-NEC reporting method.
🏠 The Key Difference Between 1099-NEC and 1099-MISC
| Form | Used For | Example of Income Type |
|---|---|---|
| 1099-NEC(Nonemployee Compensation) | Payments for services rendered by individuals who are not employees | Contractors, caregivers, or hosts providing lodging and related services |
| 1099-MISC (Box 1 – Rents) | Payments for use of property only | Rental income when a landlord rents space but provides no services (no meals, transportation, or supervision) |
💡 Why StudentRoomStay Uses Form 1099-NEC
Based on guidance from our CPA, homestay stipends are considered compensation for services, not rental income. This is because StudentRoomStay hosts do more than rent out a room — they provide a combination of housing and support services that include:
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Preparing meals
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Offering transportation
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Providing supervision and general student guidance
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Creating a safe, welcoming home environment
These activities go beyond simply renting property and therefore meet the IRS definition of nonemployee compensation rather than rent.
🧮 What This Means for Hosts
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You will receive Form 1099-NEC if your total stipends for the calendar year are $600 or more.
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The amount reported reflects the total stipends paid, including housing, meals, and other host services.
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Because this income is considered compensation for services, it may be subject to self-employment tax. We recommend consulting a tax professional to determine how this income applies to your personal tax situation.
🗓 Reporting
This reporting method will continue to apply to all future tax years unless IRS guidance changes. StudentRoomStay will issue Form 1099-NEC for host stipends paid.
📩 Questions?
If you have additional questions about your 1099 form or host stipend reporting, please contact support@studentroomstay.com or reach out to your Customer Success representative.