Should I fill out a W9 form for my landlord? Each month of the year he pays me $60 for yard work. Is there any disadvantages for me if I sign it?

[Rachel_W]

Because your Landlord is paying you over $600 per year ($60 per month x 12 = $720), he is required to send you a Form 1099-MISC reporting the income.  Form W9 is used to request your Social Security Number & Other identifying information needed in order to properly complete the Form 1099-MISC.  

The income paid to you by your Landlord is considered "Self-Employment Income" and should be reported on Schedule C of your tax return. Be sure to keep careful track of any expenses you incur doing the Yard Work because you will be able to deduct them from the income. 

See the TurboTax FAQ regarding Self-Employment Income for more details:

https://ttlc.intuit.com/replies/3300312

[MrsOnofre]

I have a similar situation, but we just deduct it from the rent before we pay our landlords, and submit receipts of the time we've spent on yard work and snow removal, gasoline and salt  (for melting ice) reimbursement. So it's not income for us. My question is on our state form (WI), for the property tax credit, it asks how much we paid for rent in 2019 heat included or not included. Do I report the actual amount of rent we paid or the amount agreed upon in our lease? ($550 is the price per month heat not included, but if we do 12 hours of yard work @ $10/hr we would pay $430).

[KurtL1 · Accepted solution]

The amount of rent you should include on your Wisconsin tax return, when claiming the Homestead Credit, is the Gross Rent paid before the reduction for the work you performed.

Expenses you paid on behalf of the landlord would not reduce the amount of rent reported on your return. Claiming Homestead Credit

If you're mailing your Wisconsin tax return, you'll need to attach your rent certificate or rent verification to your return. If you're e-filing, you should mail your rent certificate or rent verification with Form W-RA to the Wisconsin Department of Revenue. Form W-RA will be available for you to print and mail once your return has been accepted by the Wisconsin Department of Revenue.

A Rent Certificate is a form that your landlord fills out as proof of the rent you paid during 2019. If your landlord hasn't completed one, you can download a Rent Certificate, fill it out, and ask your landlord to sign it. If your landlord refuses to sign the rent certificate, you should still enter all of the information. You'll also need to have copies of canceled checks or money order receipts to verify the rent you paid.

Work done in lieu of paying rent is considered income for tax purposes. Landlords and tenants are required to report this barter income on their taxes.

Bartering is the exchange of goods or services. Per IRS.gov Barter Income  You must include in gross income in the year of receipt the fair market value of goods or services received from bartering. In the case of work performed for a landlord the amount of the reduction of the rent  would be considered income to the tenant.  Expenses paid on behalf of the landlord and reduced from the rent are not considered taxable income.