Should I report my condo as a rental if a family member lived there and paid me $7934 total for 2020?

It depends on the rest of the circumstances.

If the family member used the dwelling as her main home and is paying a fair rental price:

• The income should be reported in the Income & Expenses section as Rental Properties and Royalties (Sch E) For more details, see: Where do I enter income and expenses from a rental property?
  • Per IRS Publication 527 Residential Rental Property page 18: A member of your family or a member of the family of any other person who owns an interest in it, unless the family member uses the dwelling unit as his or her main home and pays a fair rental price. Family includes only your spouse, brothers and sisters, half brothers and half sisters, ancestors (parents, grandparents, etc.), and lineal descendants (children, grandchildren, etc.).

If she is paying below market value, then these days would be considered personal use. Instead, report the income in full as Other Income. The expenses would be deductible if itemizing deductions. In TurboTax, follow these steps:

• For the income: From the left menu, go to Federal and select the first tab, Wages & Income
• Add more income by scrolling down to the last option, Less Common Income, and Show more
• Scroll down to the last option, Miscellaneous Income, 1099-A, 1099-C and Start
• Choose the last option, Other reportable income and Start and Yes
• Enter the applicable description and amount and Continue
  • First, enter the 2020 rental income as received. 
     
• For the deductible expenses, go to Deductions & Credits and scroll down to Mortgage Interest and Refinancing (Form 1098) to enter the details of the condo as a second home.
   
• See page 16 of the Publication, middle column under Not Rented for Profit which states: If you don’t rent your property to make a profit, you can’t deduct rental expenses in excess of the amount of your rental income. You can’t deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year.
  
  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 (if 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.