<prompt> Human: Title pretty much says it all. Im a first time homeowner that has not felt the need to really go into tax code before this year. Ive been a single person that has been renting before this year making less than 50k a year so Ive just been using the free online services to file. Now that I have supplemental income from collecting rent 500month with utilities, internet and cable included I dont know if I have to or how to include that in my taxes. Any help will be appreciated Im treading into unfamiliar waters as a new home owner as well as living paycheck to paycheck due to the mortgage and bills.Assistant: Youre trying to justify being shady. You need to report this and you need to draw up an actual lease with your renter. Its all fun and games until something goes wrong and you both are in court. Human: Im not trying to be shady, that is why Im making this post. So I can know what I should do legally while not paying additional taxes.Ive known this man for more than half my life and completely trust him to take care of my house. I had to convince him to not pay for our utilities because I know he couldt afford the additional bills. I make considerably more than he does and I do not want to put him into an agreement that he feels uncomfortable with. Also a rental agreement wouldnt mean much because I know a lawsuit against him would result in nothing because he has no capital to his name that I could recoup. Edit: I just reread your comment and I am the owner, he is living in my house...  <response>: A rental agreement is not about suing the leasee, its about establishing exactly what is expected of the legal relationship between tenant and landlord; what each is entitled to, what is owed and when, how and why they can be evicted, and more as a legal contract for both parties. Exactly none of that should make him or you uncomfortable, its there to protect both you and him. You dont know what youre dealing with so you probably shouldnt presume to tell us what it would or would not mean. 