<prompt> Human: The wife and I bought a house last April and have had 2 roommates living with us to help pay the mortgage. We normally get around 2-3k back on taxes each year. This year, when we claim the 7k in rental income, we are only getting back about 700Do we have to pay income tax on the rent we are getting from the roommates? If we dont claim it, we are getting closer to the usual amount.We make a combined income of around 140k which is about 10 more than last year and are living in CO.Thanks!edit Okay looks like I got my answer. Ill expect a lower return while receiving rent from roommates. Thank you all for your input  <response>: Its income, you pay income tax on it. There is obviously no withholding on it so its going to come out of your refund. Just be thankful that you dont owe money. Next time make sure to set some aside yourself for taxes and it wont feel like your refund is taking a hit. 