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February 1, 2025
Question

Not-for-profit rent from disabled adult child

  • February 1, 2025
  • 1 reply
  • 0 views

My daughter is a disabled adult, and lives with us, her parents.  She collects SSI.  The Social Security Administration requires that we charge her rent for her to collect the maximum benefit.  However, this "rent" is below market value, and is really just a reimbursement for our daughter's share of the household expenses.

 

Do we need to report this are not-for-profit rent?  Can 100% of it be claimed as expenses since it is really just a reimbursement, or can we just not claim it as income?

 

Thanks.

1 reply

February 5, 2025

Yes, the income is taxable. The not-for-profit rental income is reported as follows and can be found in IRS Publication 527

 

Where to report. 

Report your not-for-profit rental income on Schedule 1 (Form 1040), line 8. If you itemize your deductions, include your mortgage interest and mortgage insurance premiums (you use the property as your main home or second home), real estate taxes, and casualty losses from your not-for-profit rental activity when figuring the amount you can deduct on Schedule A if you itemize your deductions. 

 

Sign into your TurboTax account:

  1. Click Tax Home in the left panel
  2. Click Wages & Income  > Review Income
  3. Scroll down to Less Common Income. Click Show more
  4. Start or Revisit Miscellaneous Income, 1099-A, 1099-C
  5. Scroll to select  Other reportable income
  6. Say Yes to Any Other Taxable Income?
  7. Enter a description and amount
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