How to report rent and personal care income from elderly mother-in-law living with is?

[Hal_Al]

You don't report it. That not rent, it's just relatives sharing expenses.

Even if t was rent, what you are NOT allowed to do, because it is your own home (you have "personal use") is claim a loss from this activity, to offset other income. Because of the "personal use rule", your deductions are limited to your income. Net effect ZERO.

[dblanchard55]

But what about the personal care aspect? I have a Personal Care and Lease Agreement to provide care for my father in my home.

[RKS1nNYS]

We have rent and personal care agreements as well on the advice of a lawyer thinking ahead to a time when my MIL needs nursing home care. Based on having documented agreements, it seems necessary to report the rent and personal care amounts as income to us. Any other opinions?

[Hal_Al]

Yes, you can report the personal care as self employment income, if you want to (treating it as income rather than sharing expenses).
If your parent is deducting what she pays you, as medical care, then you must report it as income. A written agreement makes it more likely to have to be reported.

[RKS1nNYS]

My MIL does not have enough income other than Social Security to require filing a tax return. An even if she die, it would show no tax due and just the standard deduction without itemizing. So what she pays us is not reported by her as an expense.