This will be the first year that I will be filing in the United States.
When I was filing taxes in Ontario, the money I paid in rent was a deduction so I listed it on my forms.
My husband says that this is not the case in the United States. Is this true and if so, why not?
If our landlord has to claim the money as income why can't we claim it as a deduction?
I am hoping to find a way around this.
2007-01-19 03:01:07 · 7 answers · asked by frehleygirlshideaway 1 in Business & Finance ➔ Taxes ➔ United States
Your husband is correct. Rent is not a deductible expense for tax purposes, unless you have a home office. If either you or your husband work out of your home and have a home office, then a % of your rent, utilities, etc. can be deducted. This is usually used by self-employed people.
2007-01-19 03:05:55 · answer #1 · answered by tma 6 · 0⤊ 0⤋
The only time rent paid on your home is deductible is if you are claiming a home office deduction, and only the rent attributable to the space used exclusively for business purposes is deductible (the only exception to the exclusive use requirement is if you are using your home as a day care center). In some states, California for example, you can get a tax benefit for the rent that you paid for the personal use of your home.
2007-01-19 14:10:58 · answer #2 · answered by jseah114 6 · 0⤊ 0⤋
Nope, rent is not tax-deductible in the US. The IRS considers expenses such as rent as part of the "standard deduction" for all tax filers.
As another poster mentioned, a home office is eligible for deductions but make sure you follow the rules closely for it because it is a red flag to the IRS.
2007-01-19 11:10:50 · answer #3 · answered by sothere! 3 · 0⤊ 0⤋
While rent is not deductible on your federal return, you may qualify for the state's Homestead or Rent Refund.
Check your state's Dept. of Revenue website to see if they offer this type of refund and if you qualify.
Kansas has the Homestead Refund and is filed separately from the state return.
2007-01-19 13:24:55 · answer #4 · answered by Celeste 6 · 0⤊ 0⤋
No, rent isn't deductible.
There are some states that have rebate programs that rebate part of property taxes and rent. These are usually for low-income people, and often have age requirements also, focusing on seniors.
2007-01-19 11:46:27 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
I believe the rent you pay is not tax deductible.
2007-01-19 12:35:56 · answer #6 · answered by Seven 1 · 0⤊ 0⤋
No it is not. Some states (Mass) allow it but not the Feds.
2007-01-19 11:06:14 · answer #7 · answered by vegas_iwish 5 · 0⤊ 0⤋