How do I file taxes if my parents pay for my rent?

Question

I have a kid and I make very little money. My mom pays for my rent (though she lives somewhere else). If I'm filing as an independent this year, do I include money from my mom as income? If I don't count these contributions, I'd be eligible for Medicaid. Also I work from home so the rent could be written off as a work expense.

Answer 1

Did you have income over $3,400 last year? I will assume that you did.

Your parents cannot claim you as a dependent, even if they paid over half of your support. You do not include the rent money your parents pay as income.

If your parents gave you the rent money, and then you paid it, you could deduct the business part of it. But if you have low income, it will not be worth deducting, and will probably hurt you because the deduction will reduce your Earned Income Credit. Besides, the home office deduction is complicated and is closely scrutinized. I recommend you avoid taking this deduction.

If your parents gave you the rent money and you paid the rent, that rent is considered household support provided by you. If you paid over half the costs of maintaining your home, then you could file as Head of Household. If not, then you should file as Single.

With either filing status, you can claim your child and get the tax benefits that come with the child's exemption. If your income is really low, it won't matter much if you file as Single or Head of Household, your refund will be about the same (within $200).

Answer 2

No because your parents already pay taxes on the money they are giving you(and if they are not claiming you as a dependent).
However Medicaid may wanna know if your paying rent and how much and you must show proof what your rent is, and how your able to pay such and such. So I would tell them the truth about the rent being paid by parents otherwise that is considered fraud.
Its not worst the risk of fraud

Answer 3

You don't claim the rent that your mom is paying for you as income.

Working from home might let you claim a home office expense, but not the entire rent, just the percentage of it that is the part of your home you use regularly and exclusively for business. If your mom pays the rent directly, you couldn't deduct it anyway since you aren't paying it - if she gives you the money and you pay it, then you might be able to, but be very sure you meet all the requirements for a home office deduction.

Answer 4

If your mom is contributing more than 50% of your support, she could be eligible to claim you as a dependent. You definately can not write off your rent because you do not pay it. You should contact the IRS to find out what your filing options are. 1-800-829-1040

Answer 5

I wouldn't count the rent as a contribution, but I also would write it off as an expense considering you aren't paying for it. I would file normally, and for Medicaid, without using it as the expense.

Answer 6

I don't believe you have to claim money your mom gives you. I give my two daughters money all the time to help with their school expenses and whatever they need. If someone gives you money it's a gift, you may have to pay your mom back someday....I don't your agreement with her but you do not have to claim it on income taxes. Interest, payroll, things like that need to be claimed.

Answer 7

I think the money given to you by your mother should be considered a gift and not subject to income tax.

Just be careful that she doesn't give you so much that it is subject to gift tax. The federal amount is $12,000 per person per year. Gift taxes can vary by state.

Answer 8

IF YOUR PARENTS PAY OVER 50%OF YOUR HOUSEHOLD EXPENSES THEY CAN CLAIM YOU AS A DEPENDENT. NO NOT AS INCOME FOR TAX PURPOSES.NO YOU DONT PAY THE RENT YOU CANT CLAIM SOME THING YOU DIDNT PAY YOURSELF.,YOU MAY BE ABLE TO FILE HEAD OF HOUSEHOLD OR SINGLE DEPENDING ON YOUR OTHER EXPENES YOU PAY 51% ITS H.H IF NOT ITS S. YOU SHOULD BE ABLE TO GET YOUR CHILD ON MEDICAD IF YOU ARE A SINGLE PARENT DEPENDING ON STATE YOU LIVE IN. YOU CAN CALL IRS GET ANS. ALSO