All rental income and rental expenses is reported on SCH E as a part of your personal 1040 tax return. Weather you "make a profit" or not is irrelevant. You still have rental income. What that income may be used for doesn't matter.
" same or less than my monthly mortgage payments due to property taxes."
The only thing deductible on your mortgage payment is the Interest. That's it. The principle part of the mortgage payment is still taxable income to you. However, that is generally offset by other things. In fact, it is extremely rare for rental property to ever show a profit *ON PAPER* when you have a mortgage on it. It's more common for rental property to show ever increasing losses each year as time passes, with those continuously increasing and unallowed losses carried over each year.
Remember, rental income is passive, which makes rental expenses passive too. You can only deduct passive losses from passive income. So when you take depreciation into account, the total of all your required depreciation along with property taxes, rental dwelling insurance and mortgage interst can easily put your passive rental income into the negative. Add to that other allowed rental espenses that you can claim and you're practically guaranteed to never show a taxable profit. But that does not negate your legal requirement to report it.
