How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask emc011075 Your Own Question
emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2317
Experience:  IRS licensed Enrolled Agent and tax instructor
62958156
Type Your Tax Question Here...
emc011075 is online now
A new question is answered every 9 seconds

I have 2 tenants.. Should I put them as my profit in my tax

Customer Question

I have 2 tenants.. Should I put them as my profit in my tax return ? Should I pay for them ?
Submitted: 8 months ago.
Category: Tax
Expert:  emc011075 replied 8 months ago.

Hi. My name is ***** ***** I will be happy to help you.

If you have tenants and collect rental income you have to report it on your tax return. You are allowed to deduct rental expenses like depreciation, utilities, cleaning, maintenance, mortgage interest, property taxes, insurance and such.

Customer: replied 8 months ago.
I am goin to need to pay some fees ??
Expert:  emc011075 replied 8 months ago.

It depends on the amount of rent you collected and expenses you deduct. There are no fees. Your net income or loss (rent minus expenses) will be included in your taxable income and taxed accordingly.

Expert:  emc011075 replied 8 months ago.

Do you have a tax professional helping you with your taxes? A tax preparation softwares can be very useful as well.

Customer: replied 8 months ago.
if I made 1000 dollars I am goin to need to pay taxes ??! But if I include utilities and other things my tax is lower?
Expert:  emc011075 replied 8 months ago.

That's correct. You can deduct expenses associated with the rental income. Are you renting out a separate property or a room in your own house?

Customer: replied 8 months ago.
Just a room ! Is it illegal not to include it in tax return?
Expert:  emc011075 replied 8 months ago.

Well, it is considered a taxable income. If you are required to file a tax return, you need to include it. But if you are not required (your total income + rental income is less than filing threshold) than you do not need to.

Customer: replied 8 months ago.
what is an average amount of tax that should be paid for example of 1000 dollars including utilities for 300 ?
Expert:  emc011075 replied 8 months ago.

It depends on your tax bracket. It could be as low as 0 or as high as $350. What's your total income? Are you normally required to file a tax return?

Customer: replied 8 months ago.
well they sent me and my sister that tax paper! Should I file my taxes? I make less then 11k a year and my sister makes 24 k . However, she just started working and she made around 8 k since then
Expert:  emc011075 replied 8 months ago.

What tax papers? What are the forms?

Filing requirements for single are:

under 65$ - 10,300

65 or older$ - 11,850

If your total income + the rental income is less than the filing requirement above than you do not need to file a tax return. And you don't count your social security income. If it is more than that, than you need to file a return.

Customer: replied 8 months ago.
W-2 form ) So I don't need to file it? I did it last year ! What is the point of this form then ? I made less then 10 k this year and my sister did as well
Expert:  emc011075 replied 8 months ago.

Employers are required to issue your W2 regardless how much you make. They do not know if this is your only income, job if you have other investment income or if you are required to file tax return or not. That's the determination you need to make. If you total income + the rental income is less than the filing requirement than no, you do not need to file. However, if you had taxes withheld from your paycheck (box 2 on your W2), you will have to file if you want to get the witholdings back.

Expert:  emc011075 replied 8 months ago.

Any questions? Is there anything else I can help you with today?

And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.

Customer: replied 8 months ago.
once again I make 6 k a year and get extra 2 k from tenant. I don't need to file anything ? My sister lives with me ! Does mine and her income count altogether?
Expert:  emc011075 replied 8 months ago.

8K is bellow filing requirement for a single. No, you don't need to file unless your employer withheld federal income taxes from your paycheck (box 2 on your W2) and you want to get back those withholdings. But you are not required to do so, it is your choice.

Your sister will have to file her own return if she is required to file. You do not combine the income. Your income is your responsibility, her income is her responsibility.

Expert:  emc011075 replied 8 months ago.

Any questions? Is there anything else I can help you with today?

If you found my answers helpful, a Positive Rating would be greatly appreciated. Thank you!