If I earned less than 20K, what do I need to put on my tax form?

[Pam-and-Thomas0]

I earned less than 20K, and I live in the house (just rented out a room).  What do I need to fill out for tax purposes, if anything?  I don't want to break any laws and am happy to submit any necessary information.  Just wanted to check!

[India4]

I am finding this difficult cause this is my only income besides my IRA beneficiary policy. I will consult a tax professional this week.

[Karen499]

According to the USA IRS:  You must claim all worldwide income on your tax return.   

If your landlord is renting out the room and you just collect rent and pass it on to him/her, it is your landlord's income.  Make sure any checks are made payable to the landlord or you can be responsible for the taxes (and any penalties that apply).

If you are renting rooms out (whether you own the property or not) then it is your income and you are supposed to claim it on your tax return - just as you would claim employment income. 

This is self-employment Rental Income and claimed on Schedule E.  You can deduct Rental Expenses (insurance, maintenance, etc.) on the same form.

If you run a business as sole proprietor you claim Rental Income & deduct Expenses on Schedule C. 

Schedule E & C are filed with Form 1040.

If the entity is a Partnership of S Corporation, you claim Rental Income & deduct Expenses on Form 8825 & file it with Form 1065.

Be sure to consult a Tax Professional before filing any tax forms.

[Pete28]

What would be useful is the pro and cons of filing under E or C. I'm fully aware of what E offers as I have a normal rental. I believe C will make me pay tax as self employed on my income.

I sense it will be hard for the IRS to know if I am doing a rental (E) or running a business (C)  - I believe the former would imply rentals longer than one month. Anyone care to clarify ?

[Alicia242]

@Pete28 Good point Im confused on that too... I think ill do a schedule C if an option, since I own a small business already (self employed provide a service) that way maybe Ill just have to pay the self employed tax once???in MA ( but think its for Federal tax law too?? its approx $550. I dont even know what the fee is for the sched. E =( Net Investment Income tax is) do you? 

[Pete28]

I read elsewhere that the IRS would expect it reported as C since you provide services, but it's interesting that the guidance seems a little open ended. Anyway depreciation, property tax, any loan interest and utilities are the big ticket items to reduce tax 🙂

[Alicia242]

 http://assets.airbnb.com/eyguidance/us.pdf This was very helpful I found it on Airbnb. Im trying to figure this all out too. Have an appointment on Tuesday with tax preparer. I hope they know about airbnb.... I only had like 25 days booked last year gross about$3,500 and I think we need to claim all. I find that odd because airbnb takes their $ from that too. I have it all written out net and gross and have receipts. I live in the home and own the home just rent a private room. There are alot of scenario's in the Ernst and Young pdf Good luck everyone!

[Michelle176]

Did you r tax professional happen to mention how to claim the partial rental?  I also own my home and rent out my second bedroom.  It is not always booked but it's almost always available and I don't stay in it.  I'm very confused about how many days to claim as a rental and how many to claim as "personal use".  I use the rest of the house most days but never use that room.  However, it also wasn't rented; it's like having leftover inventory.  So confusing!

[Bonnie133]

I have a tax question too and I am not sure how to post my question. 

I purchased a mobile home with the equity in a house i sold.  I do not have a paying job for a few years I’ve been trying to get a few of my own projects (tv shows and movies off the ground) . I’ve been living off of remaining equity left from the sale of my house it’s getting low so i decided to rent out a room to cover the space rent charged by the noble home park a cleaning fee and 50.00 to cover any increase in utilities it might cost by having a Roomate .  I will not make any money on the rental unless i charge  over the  1,600 space rent payment 

The landlords requirement is for all space rent payments to come from my living trust  account . I paid for the house I want someone else to pay the space rent . I am being asked by Airbnb for tax information and I do not believe  my space rent to be a taxable situation. It’s not going towards paying a mortgage or anything for me personally  . I would agree that anything i pocket meaning anything above the 1,600 would be income . Places actually rent for 3,000 to 7,000 in the Santa Monica , Pacific Palisades and much more in Malibu .  I specifically kept the rent the  same as space rent to avoid a taxable situation. Even if I had Daily I’d cap it at 1,600  for that reason . 

Bonnie