If I rented property to my parents do I still need to claim the money I made on my taxes as income?

[ReneV4]

Yes. You still need to report your rental income on your tax return, using Schedule E.

In TurboTax, do the following:

1. Go to Wages & Income
2. In the "Your income" section, scroll down to Rental Properties and Royalties (Sch E)
3. Click Start and follow the prompts to enter the information about your rental
4. You will then add your income, as well as expenses, such as landscaping, repairs, etc.

For more information, read, "Where do I enter income and expenses from a rental property?"

[taxmodern]

You are required to report it is income, but how it is reported depends on whether or not you are charging them fair market rent.  If you're charging them at least 80% of what could be reasonably considered fair market rent for that type of property in your area, then you report it as a regular Schedule E rental property, and you can deduct your expenses and depreciation, etc. from the rental income.

But if you're giving them a great deal and you're charging them less than 80% of fair market rent, then the tax law unfortunately isn't kind to people in that situation.  In that case, it's not longer treated like a rental property by the tax law.  You still have to pay taxes on the income as miscellaneous income (like hobby income).  But you can't deduct any expenses from that income (yes, it sounds absurd, but it's true).  But you can at least claim the mortgage interest and property taxes in your itemized deductions on Schedule A, since the tax law treats it as your own personal use property when your renters aren't paying market rent.