Carl
Level 15

Investors & landlords

What you pay for rent is never deductible on your federal return and it never has been. However, if your state taxes personal income some states allow for what is called a "renter's credit". But you don't deal with that until you get to your state return, and only if your state offers such a credit and you actually qualify for said credit.

 

"So are you telling me this is a new thing that was not the rule before"

Nope. There is no "new rule" on this at all. Absolutely nothing what-so-ever has changed on that front. You have never be able to deduct what you pay for rent on your *FEDERAL* return.  But like I stated, if your state offers a break, usually in the form of a renter's credit, you'll deal with that after you have completed the federal return and are working on your state return.

If you have further questions on this, then you need to include what state you're in, as there are 37 states that tax personal income.