Renting a room in home VS sharing my home?

Question

Is there a tax or income difference with renting out a room in my home or having roomates situation and share expenses in my home?

Are the payments considered income? I have read a few replies regarding is the rent considered income and taxable and have read totally opposite answers.

Does someone know for sure the USA/federal law regarding this question? Thank you

Answer 1

.   If you receive more than $599 per year from a non-family member, you need to tell the IRS.   Usually that will be counted as ordinary income and you will pay tax.  

No difference between renting out a room or having roommates ... if you are the home owner.

Answer 2

Yes, you must report the income (rent) regardless of whether you call it a roommate or a tenant, per the law, they are one and the same. You are also allowed to report expenses.

Rental income and expenses are reported on Form 1040, Schedule E.

http://www.irs.gov/taxtopics/tc414.html

http://www.irs.gov/businesses/small/indu...