Summer Internships: Benefits and their Tax Impact

Summer is in full swing and most college students have either graduated or are on summer break. For many companies, this means the beginning of a summer internship program. To support summer interns, some companies cover the intern’s travel expenses to and from the summer job location and/or housing expenses for the duration of the internship. Summer internship programs do not meet requirements to be classified as job interview, business or relocation expenses. Therefore, these reimbursements should be treated as income and reported on the intern’s W-2. Most companies provide tax gross-up to cover the intern’s tax liability. 

This information is intended as general information only. SIRVA recommends that any tax and/or legal aspects of any policy or program be reviewed by your own tax and legal experts.