If your daughter rents from you at the going rate for rental rooms in the area and you rent the room with a primary intent to make money, then it might be categorized as rental income.
If, however, your daughter is splitting household expenses with you and it is below the rental market rate, then that is household expense sharing and does not have to be reported as income.
You may also be able to claim your daughter as a dependent on your return, if she meets the following requirements:
Qualifying child
- They are related to you.
- They are not claimed as a dependent by anyone else
- They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident
- They aren’t filing a joint return with their spouse
- They're under the age of 19 (or 24 for full-time students).
- No age limit for permanently and totally disabled children
- They lived with you for more than half the year (exceptions apply).
- They didn't provide more than half of their own support for the year
The IRS states:
- A person has a permanent and total disability if both of the following apply:
- They can’t engage in any substantial gainful activity because of a physical or mental condition and
- A doctor determines their condition:
- Has lasted continuously for at least a year or
- Will last continuously for at least a year or
- Can lead to death
You can use the IRS self-help tool to see if your daughter might qualify
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