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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29789
Experience:  Taxes, Immigration, Labor Relations
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I just started renting a room to my disabled son here in CT.

Customer Question

I just started renting a room to my disabled son here in CT. Does the money he pays me count as "income" for tax and department of social services purposes or is he just contributing to the household bills?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

We need to be clear - if you collect rent - that is your income.

But if your son just pays his share of utility bills - which you split - that is not your income and you do not collect rent.

Expert:  Lev replied 1 year ago.

If you do rent and your rental fees include utilities - you may deduct that cost against your rental income.
So - you woudl be only taxed on net rental income.
Then - we need to decide if you rent for-profit - means if you collect a fair market value OR

that is a non-for-profit rental - and you charge less than a fair market value.

From tax prospective - these are reported differently.

Also these are differently reported to the department of social services.

Does that answer your question?
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