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Renting a room in home VS sharing my home?
Is there a tax or income difference with renting out a room in my home or having roomates situation and share expenses in my home?
Are the payments considered income? I have read a few replies regarding is the rent considered income and taxable and have read totally opposite answers.
Does someone know for sure the USA/federal law regarding this question? Thank you
. If you receive more than $599 per year from a non-family member, you need to tell the IRS. Usually that will be counted as ordinary income and you will pay tax.
No difference between renting out a room or having roommates ... if you are the home owner.
Yes, you must report the income (rent) regardless of whether you call it a roommate or a tenant, per the law, they are one and the same. You are also allowed to report expenses.
Rental income and expenses are reported on Form 1040, Schedule E.