Taxes When Renting Out a Room in Your House
Any rent that you receive is taxable income.
However, you’ll be able to claim expenses and deductions when renting out a room that you could not claim before.
If you are planning to rent out a spare room in your house you’ll want to figure out the square footage of that room and what percentage it accounts for in your home.
If you have a 2,500 square foot home and the room you rent out is 500 square feet this would account for 20% of your square footage.
The fraction of the mortgage interest, utilities, or real estate taxes that is due to your roommate is one-fifth. These expenses are deductible as rental expenses on Schedule E. [source: H&R Block]