Do You Get Paid to House a Foreign Exchange Student?

Hosting a foreign exchange student offers families a unique opportunity for cultural exchange and broadened perspectives. This experience involves sharing one’s home and lifestyle with a student from another country, fostering mutual understanding and building lasting relationships. While the motivation is largely altruistic, prospective host families often inquire about financial aspects. The primary aim of these programs is cultural immersion, not monetary gain for the host family.

Financial Support for Host Families

Host families typically do not receive a “salary” for housing an exchange student. Some programs offer a modest stipend or reimbursement to offset direct hosting costs, such as increased utility usage, additional groceries, and transportation for school activities or family outings. The amount of this financial support varies significantly by exchange program, student’s stay duration, and geographic location.

For instance, F-1 visa programs might provide a monthly stipend, while J-1 visa programs often rely on volunteer host families who may qualify for a tax deduction. Some organizations offer $30 to $85 per day for short-term stays, or up to $1,400 per month for longer academic year placements, though these figures can fluctuate. This financial assistance helps manage increased household expenses, reinforcing the cultural exchange purpose of the program.

Host Family Financial Responsibilities

Host families assume several financial responsibilities when welcoming an exchange student into their home. These include providing daily living necessities such as three meals a day and a private bed within a clean, safe living environment. Families are also responsible for increased household expenses, including higher utility bills for water, electricity, and heating.

Local transportation to and from school, as well as for school-related activities, is another common responsibility for host families. While students may use school buses, host parents often need to ensure transportation for other needs, just as they would for their own children. These ongoing costs are expected to be covered even if a program stipend is received.

Program-Provided Financial Assistance

Exchange programs typically cover several significant financial aspects directly, reducing the burden on host families. The student’s international travel expenses, including flights to and from the host country, are usually handled by the program or the student’s natural parents. Health insurance for the duration of the student’s stay is also generally provided by the exchange program, ensuring medical coverage without imposing this cost on the host family.

School tuition, if applicable, is often paid directly by the program or the student’s natural family, particularly for J-1 visa students who typically do not pay tuition. Exchange students are expected to have their own personal spending money, typically ranging from $150 to $300 per month, to cover personal toiletries, cell phone plans, clothing, entertainment, and other discretionary expenses.

Tax Considerations for Host Families

Any financial support received by host families, such as stipends or reimbursements, may have tax implications. If you receive reimbursement for any part of the cost of hosting, you may be ineligible for certain tax deductions. However, U.S. host families may claim a charitable contribution deduction for qualified expenses incurred, up to $50 per month for each full calendar month the student lives with them. This deduction applies if the student:

Is in the 12th grade or lower
Attends school full-time
Is not a relative or dependent
Lives in the home under a written agreement with a qualified charitable organization

Deductible expenses include costs for books, tuition, food, clothing, transportation, medical and dental care, and other amounts spent for the student’s well-being. Non-deductible expenses include depreciation on the home, the fair market value of lodging, and general household expenses like taxes or insurance. If a host family receives more than $600 in annual homestay fees, the program may issue a Form 1099-MISC or 1099-NEC. These payments may be considered taxable income, requiring reporting on tax returns. Consulting a qualified tax professional or referring to IRS Publication 525, “Taxable and Nontaxable Income,” is advisable for personalized guidance.