Adult child on SSI and rent payments

Forum|Forum|10 months ago
May 27, 2025
1 reply
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If my adult child on SSI pays us "rent" (less than their fair share of household expenses), do I pay taxes on what they pay us? What if we have a "Business Arrangement for Rent Payment"? SSI mistakenly is paying them less than the full amount they are due, even though they are paying more than the PMV, so it was recommended by a benefits counselor we fill out a Business Arrangement for Rent Payment to send to SSI. However, I'm concerned if we will then be taxed on what is given to us by our child, when really they are just paying a small amount to help with household expenses (above the PMV but nowhere near what their share of the actual rent would be).

How can we ensure they get paid fairly but we don't then get taxed on what they pay us? Should we do the Business Arrangement for Rent Payment as suggested?

Not A Product Question

AmeliesUncle

Yes, if you are receiving rent it is taxable. It sounds like you are receiving less than Fair Market Value (and/or a not-for-profit rental), so you won't be able to claim any rental deductions.

It sounds like part of the SSI is based on the amount of rent they pay, so in order for them to receive that, your child needs to pay rent (and therefore it will be taxable to you).