Yes, you need to report this income as miscellaneous income. See below for instructions on how to enter the income.
If you rent your
property below fair market value, the IRS considers that you do not rent your
property to make a profit. In this case, you report rental income but can
deduct your rental expenses only up to the amount of your rental income. You
cannot deduct a loss or carry forward to the next year any rental expenses that
are more than your rental income for the year.
Mortgage interest
and property taxes paid are claimed in Schedule A as for your residence.
Please refer to this
IRS document , especially the section on Not
Renting for Profit on page 16 on how to report income and expenses:
https://www.irs.gov/pub/irs-pdf/p527.pdf
To enter the income:
- Click on Federal on the left hand side of the screen in the black area
- Click on Wages & Income at the top of your screen
- Scroll down ( you may need to click on All Income) to Less Common Income
- Click on Show More
- Scroll down to Miscellaneous Income
- Click on Start
- Scroll down to Other reportable income and click Start
- Enter a description and income amount
