I rent the second floor of my home to my brother. Do I have to report the rental income?

[Melaine]

Yes, and by doing so you will also be able to deduct expenses associated with him being there such as your utility bills.  The portion of your expenses will be based on the amount of space you have rented.  Example:  If you have a 2000 sq. ft home, and the room you rented out is 300 sq. ft., you can deduct 15% of your utilities.  However, it is important to remember that, because it is your own home and you also have personal use of it, you cannot claim a loss from this activity to offset other income.  Because of the IRS personal use rule, you deductions are limited to your income. For more information and how to enter this in Turbo Tax, please see the post below;

https://ttlc.intuit.com/replies/3288530