topic Roommates money sent on cash app do i have to claim it in State tax filing

Roommates money sent on cash app do i have to claim it

Brittanystan1 — Mon, 03 Feb 2025 01:33:20 GMT

I have two roommates each month they send me $500 on cash app. Do I need to claim this on my taxes

Re: Roommates money sent on cash app do i have to claim it

DavidD66 — Mon, 03 Feb 2025 01:54:31 GMT

It depends. Do you own the home the three of you are living in, or are they paying you and then you in turn pay the landlord? Also, were the payments reported on a Form 1099-K? Please clarify and provide more details about your situation.

Re: Roommates money sent on cash app do i have to claim it

Brittanystan1 — Mon, 03 Feb 2025 14:01:15 GMT

Thank you for answering. I own the house no landlord involved. They just moved in December and I’ve never received a 1099-5 form

Re: Roommates money sent on cash app do i have to claim it

Vanessa A — Mon, 03 Feb 2025 14:15:02 GMT

Generally, if you own the house and someone is paying you to live in the house, you are considered the landlord. However, it does depend on if your intent is to make a profit or share expenses. If you're intent is to make a profit, you are charging them a flat monthly rate, and you found two strangers to live with you, then you are definitely in a landlord tenant situation. If you are simply sharing expenses with friends, then this would not be reportable income.

You will not receive a 1099-S as this is a form for the sale of a house.

You may or may not receive a 1099-K from Cash App depending on how much total you received in 2024 and if they sent it as friends and family or as a payment for services. However, even if you do not receive a 1099-K if you fall into the landlord category, you are still responsible for claiming the rent they are paying you as income. You will also be able to prorate expenses in the house and claim them as expenses on your return. For example, if each of your 2 roommates have their own bedrooms and you all have equal access to shared spaces in the house, you would be able to claim 2/3's of your mortgage interest, utilities and other expenses as a deduction to your rental income.

You will need to file a Schedule E to do this. You can file Schedule E by using TurboTax Premium Online or TurboTax Premier Desktop which will walk you through the steps of entering your income and expenses for renting to your roommates.

Re: Roommates money sent on cash app do i have to claim it

TomD8 — Mon, 03 Feb 2025 16:09:35 GMT

Also, the IRS has an interactive online tool that may be useful in this situation:

https://www.irs.gov/help/ita/is-my-residential-rental-income-taxable-and-or-are-my-expenses-deductible