Hi, me and my husband are hosting a high school exchange student attending a private school in our city. We received a 1099-MISC reporting the amount we received last year. It's in box 1 (Rents).
I added it to TurboTax as a self-employment income and it charged me a huge amount of taxes for that. I used the deductions page and was able to lower that amount, but it still was a lot of money for taxes compared to how much money we received and how much money we have to spend in order to take care of the student.
Should I enter the gross amount on Turbo Tax or the amount we actually made as a profit? How do I deal with all food, transportation, housing expenses?
Has anyone been in the same situation in the past? What did you do?
