Are meals or lodging furnished for the convenience of the employer included in gross income?

Meals or lodging furnished for the convenience of the employer are not included in gross income under certain conditions set by the IRS. Specifically, when these benefits are provided to an employee for the employer's benefit—such as to keep employees on the premises, to ensure an employee is available for emergencies, or as a necessity of employment—they are considered non-taxable fringe benefits. This exemption highlights the idea that such arrangements are not considered compensation but rather necessary provisions for business operations.

It is important to note that in situations where meals or lodging do not meet the criteria of being for the convenience of the employer, or if they are provided as general compensation rather than a requirement of the job, they may be included in the gross income. Furthermore, if the benefits provided exceed certain thresholds or are not aligned with the conditions of employment, they could incur tax liabilities for the employee. However, in the context of meals or lodging specifically provided for the employer's convenience, those benefits are excluded from gross income.