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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.
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.
Do you have a tax professional helping you with your taxes? A tax preparation softwares can be very useful as well.
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?
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.
It depends on your tax bracket. It could be as low as 0 or as high as $350. What's your total income? Are you normally required to file a tax return?
What tax papers? What are the forms?
Filing requirements for single are:
under 65$ - 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.
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.
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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.
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