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eburnham64
Level 1

Landlord income taxes for renter

I own a house and my roommate is unemployed and applied for rental assistance. I received 6,300 of it to pay towards his part of the mortgage. Will I have to pay tax on this money I received?

5 Replies
RossP88
Employee Tax Expert

Landlord income taxes for renter

Hi! I am a TurboTax Live CPA. Yes, since you collected rent, you will need to pay tax on that income regardless of the source. 

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xmasbaby0
Level 15

Landlord income taxes for renter

If you are a landlord and are receiving rent, you report the income you received.  The fact that your renter received assistance is not relevant.  It was still income to you.    Do you and your roommate have a written lease or rental agreement?  Or is this just a roommate cost sharing arrangement?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
eburnham64
Level 1

Landlord income taxes for renter

Since I have to pay taxes on the money received, what in my house will I be able to write off?

Michele_H
Employee Tax Expert

Landlord income taxes for renter

Hi @eburnham64! You will be able to exclude certain expenses on your rental property I am attaching some articles to help you determine what you can include.

https://www.irs.gov/businesses/small-businesses-self-employed/tips-on-rental-real-estate-income-dedu...

https://turbotax.intuit.com/tax-tips/rental-property/rental-property-deductions-you-can-take-at-tax-...

http://taxpreparationchecklist.com/checklists/schedule-e-checklist.htm

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ReneeEA
Returning Member

Landlord income taxes for renter

Hi There!  I am also a CPA and have some experience in how the state-sponsored programs handle rental income that is distributed to landlords such as yourself!    Most likely, (and please reply to this post if this is not the case in your situation) - you have to fill out and file a W-9 Form with the State that is paying the rent on behalf of the roommate.  This is so that the State has the information for you (as the landlord) with your social security number, address, and where the funds were sent, so that the State can send to you a Form 1099-G (which is a 1099 Form that shows the total amount of funds that the State pays to you during the tax year). 

 

You will most likely receive the 1099-G from the State on or shortly after February 1, 2022.  Once you receive this form - you will need it for your tax return filings.

 

In terms of filing - you will need to add a Schedule E to your tax return for 2021 - the year that you received these rental funds from the State on your roommate's behalf, and you will need to report this rental income/subsidy from the State as rental income on Schedule E.

 

The cool thing is that TurboTax Live! will ask you a few questions about the rental income, and also ask you about any expenses you incurred as a landlord, and you will just enter the information - and TurboTax Live! will do the rest.   Please just keep copies of any receipts for any expenses that you had to incur that were specific to the rental arrangement that you have with your roommate!

 

We trust and hope that the response contained herein addresses your question - but please do not hesitate to contact us if you need additional clarity - and please do not hesitate to contact us to schedule a call with one of our Live Tax Experts so that we can answer questions about this Schedule E Rental Income!

 

Thank you for choosing TurboTax Live!

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