Monday, January 19, 2009

Does "rent" paid by a family member constitute income to parents?

Q.: My son lives at home and receives SSI. He pays us a flat amount per month for rent and food. Does the money received from my son have to be reported as income on our tax return?

A. No. Payments by a family member for "rent" or other living expenses to another family member does not constitute income. It is more akin to reimbursement for expenses, and should not be reported on your tax return.

See Circular 230 Notice, below.

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