Do I need to claim income for having a roommate in my primary home?

[wujeantucker0612]

I am charging below market value to help with property tax, association fee and utilities

[ColeenD3]

You have a not-for-profit rental, since it is below market value and you are not in it for the production of income. Report your income as other income.

Not Rented for Profit

If you don’t rent your property to make a profit, you can’t deduct rental expenses in excess of the amount of your rental income. You can’t deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year.

Where to report.

 Report your not-for-profit rental income on Schedule 1 (Form 1040), line 8. If you itemize your deductions, include your mortgage interest and mortgage insurance premiums (if you use the property as your main home or second home), real estate taxes, and casualty losses from your not-for-profit rental activity when figuring the amount you can deduct on Schedule A

[Vic72]

Follow-up question for you ColleenD3:  I share my house with a friend, and other than our individual bedrooms, she has full use of the house/garage, etc.  I'm not trying to make a profit  apparently this would fall under Not For Profit, of which rental income to be reported on Schedule 1. And it is clear that you can offset that rental income with RE taxes, mortgage interest, casualty loss per the publication.  But, I am confused a to where sharing expenses (utilities, pest control, yard mtg, etc.) comes into play.  I charge her $550 for "rent" which is way below FMV.  Her 50% portion of the expenses is around $500 a month.  One person said I had to report the entire $1050 as rental income... that I could offset that with RE taxes and insurance, but NOT utilities.  I don't see anything in the not for profit section that says I can offset the entire $1050 with utilities/expenses, but this really does not make sense to me.  If this is true then my rental income would be very inflated and I would be taxed on her portion of utilities/expenses she paid me.  Any advice you have would be appreciated. 

[DoninGA]

@Vic72 If you do not have a formal rental agreement with your roommate, then their payments to you are just roommates sharing expenses.  You do not report their payments on your tax return.