What happens if my landlord doesn't report my rent payments as income?

Question

I want to file for a tax credit for rent payed throughout the year of 2010, AND also apply for food assistance throught the state of Michigan. I have lived in the house I am renting for 26 months, and throughout that time, my landlord has stated she doesn't want anyone (i.e. the bank) to know she is renting out her home. She has moved back into her parents house so basically my rent that I pay her is straight income to her, expect for the amount she actually pays towards her house payment. I had read somewhere that landlords have to report rent paid by their tenants as income when filing their taxes. If I try to go down and apply for food assistance, and/or fill out the tax form for a credit for rent, will she be flagged and get into trouble for not reporting it herself, or is this not one of the ways the IRS can detect this sort of thing?

Anonymous · Accepted Answer

Yes that would raise many red flags but that is not your problem.  You have to do what you have to do for your family.  If she gets caught cheating on her taxes or if DHS catches her then she will be the one getting sued not you.  If DHS or another government agency requires that she move back in to her house, then she must give you proper 30 days notice.

circle · Answer

If lease isn't paid in finished, the owner can serve you with a three Day observe To Pay Or stop. This observe could be in writing and be received with information from you before the three days countdown starts. once served, you've 3 days to pay up or vacate in the different case the owner will start up the eviction procedure. the owner has no criminal criminal responsibility to go back any lease paid. the owner is legally obligated to go back the safe practices deposit and/or accounting of the damages deducted from the deposit interior 21 days when you flow out. you aren't any further able to call for something from the owner. in case you leave willingly, it isn't an eviction. in case you rigidity an eviction, you're able to strengthen the time you could stay contained in the apartment with information from some weeks yet you'd be held answerable for the owner's court prices, lawyer expenses, etc.

Anonymous · Answer

I would fill out the rent rebate form and put the landlords name and address where it is requested and send it in - if she is not living there, and not claiming teh rent - she is guilty of tax evasion and if she is alos receiving money to be LIVING there from DHS, she is also guilty of fraud

ask for a new lease to protect yourself for teh next 12 months and file teh returns - and don't worry about her situation - she is acting illegally

ivan dog · Answer

applying for a food assistance will not likely cause the IRS to notice the discrepancy

but... applying for any type of tax form can get the IRS attention ,  not that it would right away... but.. it is possible they could notice that your landlord is not paying tax on your rent to her

Slickterp · Answer

She gets in trouble for tax evasion.  She can go to jail for it.

? · Answer

I.R.S. will catch him and he will have to pay the taxes or go to jail

Anonymous · Answer

As long as you have receipts or cancelled checks, you have proof you paid.

Her not reporting it is her problem.

paapaa · Answer

Yes, you will get her in trouble.

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What happens if my landlord doesn't report my rent payments as income?

8 Answers