If a landlord returns security deposit, does it count as income for the tenant?
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1 Best answer
TomD8
Level 15
Jun 6, 2019 2:41:43 AM
A returned security deposit is not income. It was your money to begin with. However, if the money was returned to you with interest, the interest would be taxable. (Some states require landlords to pay interest on security deposits.)
1 Replies
TomD8
Level 15
Jun 6, 2019 2:41:43 AM
A returned security deposit is not income. It was your money to begin with. However, if the money was returned to you with interest, the interest would be taxable. (Some states require landlords to pay interest on security deposits.)