I understand the temptation to not report it since it's through Venmo, but you really need to report this rental income. The $27k you collected is significant income that the IRS expects to see on your return. Here's what you should know: You'll report this on Schedule E (Rental Income), but the good news is you can offset a lot of it with deductions. Since you're renting out rooms in your primary residence, you can deduct the rental percentage of expenses like mortgage interest, property taxes, insurance, utilities, repairs, and even depreciation. For example, if the rented rooms represent 25% of your home's square footage, you can deduct 25% of your qualifying home expenses against that rental income. With your $12,400 in mortgage interest alone, that could be around $3,100 in deductions right there. Don't risk tax evasion charges over this - the penalties and interest aren't worth it, especially when proper reporting with deductions will likely result in much less tax than the 25% you're estimating. The IRS has been cracking down on unreported income, and payment apps are reporting more transactions than ever before. I'd strongly suggest getting help from a tax professional for your first year doing this to make sure you capture all the deductions you're entitled to and set up good record-keeping practices going forward.

I completely understand your situation - I went through the exact same thing when I first started renting out rooms in my house! The short answer is yes, you absolutely need to report this as rental income, but it's not nearly as bad as you think once you factor in all the deductions you can take. Here's what helped me: First, calculate what percentage of your home is being rented out (either by square footage or number of rooms). Let's say it's 30%. You can then deduct 30% of your mortgage interest ($3,720), property taxes, insurance, utilities, and even depreciation against that $27k rental income. I was also worried about the Venmo payments, but honestly, with the new reporting requirements and the IRS getting more sophisticated about tracking unreported income, it's just not worth the risk. Plus, when I actually did the math with all the legitimate deductions, my tax liability was way less than I expected. My advice? Get a good tax software program or see a CPA for your first year doing this. They'll walk you through Schedule E and make sure you're capturing every deduction you're entitled to. The peace of mind is worth it, and you'll probably end up saving money compared to just ignoring the income and hoping for the best. Don't let the fear of taxes keep you from doing this properly - rental income from roommates is super common and the IRS has clear guidelines for handling it!

Here's what I've seen from tracking state returns over the last few years: • Fast states (1-2 business days): GA, IL, MA, NY • Medium states (2-4 business days): CA, OH, PA, TX, WA • Slower states (4-7 business days): FL, MI, NJ, OR Wow, I never realized how complicated state tax systems are until I started helping my parents with their returns! Each state seems to operate in its own universe with completely different timelines.

I'm in a similar boat waiting for my state refund! From what I've experienced, it really does vary by state like others have mentioned. Mine usually takes about 3-4 business days after approval. One thing that helped me last year was setting up account alerts with my bank so I'd get notified immediately when the deposit hit, rather than obsessively checking my balance every few hours. That way I could plan my bill payments without constantly worrying about the timing. Hope your federal return gets processed soon too - 3 weeks is rough!

I work in financial services (not for Schwab). The account summary you're seeing is something we call an "information statement" - it's for your reference but not an official tax document. Usually this happens when: 1. The amounts don't meet reporting thresholds for the specific entity 2. There's a consolidation happening with reporting 3. They're planning to issue a corrected/consolidated form later If it explicitly says it's not reported to IRS, you MUST still include it on your return. The IRS requires taxpayers to report all income regardless of whether they receive a form. This is one of those weird situations where the burden is on you even though it seems like it shouldn't be.

I went through something very similar when Charles Schwab acquired TD Ameritrade. What you're experiencing is actually pretty common during these large brokerage mergers. The "Account Summary" they're providing is essentially their way of giving you the tax information without issuing a formal 1099. Here's what likely happened: Schwab is treating your account as part of a transitional reporting period. Even though you had significant dividend income ($1,300+), they may be consolidating reporting or waiting to issue corrected forms later in the year. Some brokerages do this when accounts transfer mid-year to avoid duplicate reporting issues. Regardless, you absolutely need to report that income on your tax return. Use Schedule B for the dividend income and report the interest on Form 1040. The fact that they explicitly state it's "not being reported to the IRS" actually protects you - it shows you're aware of the income and are voluntarily reporting it correctly. I'd recommend keeping that Account Summary with your tax records and maybe calling Schwab one more time to ask if they plan to issue any corrected forms later. But don't delay your filing - report the income now using the summary information.

I'm so sorry for your loss. This must be incredibly difficult for your family to navigate while grieving. From my experience working with practice transitions, I'd strongly recommend being honest with clients about your brother's passing. While your sister-in-law's feelings are completely understandable, clients will likely find out anyway through obituaries or community connections, and discovering they weren't told directly could damage trust and complicate the transition. A simple, respectful approach works best: "We regret to inform you that [Brother's name] passed away unexpectedly. To ensure continuity of service, his practice is being transferred to [New CPA/Firm name], who will maintain the same professional standards you've come to expect." For practical next steps: Look for his practice management software (likely CCH, Thomson Reuters, or similar) - most have client export functions under "Reports" or "Client Lists." If you can't access it, call the software company directly - they have emergency protocols for situations like this. Beyond the state licensing board, also notify: the IRS (CAF system), his E&O insurance carrier, professional memberships (AICPA, state CPA society), and any banks where he had business relationships. The local CPA society may also have transition resources to help guide you through this process. Take care of yourselves during this difficult time.

I'm so sorry for your loss - losing a sibling is incredibly difficult, and having to handle their professional affairs during such a painful time adds another layer of stress. As someone who has worked in estate planning, I'd echo what others have said about transparency being the best approach. While your sister-in-law's feelings are completely understandable, clients who discover the truth later often feel more hurt by not being told directly than they would by receiving honest but gentle notification initially. One practical consideration that hasn't been mentioned yet: check if your brother had any client retainer funds or trust accounts that need to be handled according to your state's rules. These often have specific requirements for notification and transfer that are separate from the general practice transition. Also, if he had any ongoing monthly or quarterly services (bookkeeping, payroll, etc.), those clients will need more immediate attention to avoid service interruptions. You might want to prioritize notifying these clients first or having the new CPA reach out to them directly to ensure continuity. The suggestion about contacting your local CPA society is excellent - they often have volunteers who specialize in practice transitions and can walk you through state-specific requirements. Many also have grief counseling resources that might help your sister-in-law process this transition. Take care of yourselves - this is a marathon, not a sprint, and it's okay to ask for help from professionals who deal with these situations regularly.

This thread has been incredibly helpful and thorough! I'm actually in a very similar situation - moving in with my boyfriend next month and he owns the house. Reading through all these responses has really clarified the key decision points. Based on everything discussed here, it sounds like the expense-sharing approach is definitely the way to go for most couples in our situation. I love the practical suggestions about setting up expense categories, using automatic transfers with clear memo lines, and keeping simple monthly documentation. One question I haven't seen addressed - how do you handle it if one person wants to make improvements that the other doesn't care about? Like if I really want to upgrade the bathroom but he's fine with it as-is? Since he's the homeowner, I assume any improvements should come from him alone to avoid complicating the expense-sharing arrangement, but I'm curious how other couples have navigated those situations practically. The advice about getting everything documented and consistent from day one really resonates. We're going to sit down this weekend and map out exactly who pays what, create that simple written agreement several people mentioned, and set up the tracking system before I move in. Thanks everyone for sharing such detailed, real-world experiences - this is exactly the kind of practical guidance I needed!

This thread has been absolutely fantastic - so much practical advice! I'm in the exact same situation as the original poster and was completely overwhelmed by the tax implications until reading through all these responses. The consensus around expense-sharing versus rental arrangements makes perfect sense, and I love all the specific implementation tips people have shared - the joint household account idea, expense categories, automatic transfers with clear memo lines, and the simple monthly documentation approach. One thing I'm still wondering about though is how to handle the transition period. I'm moving in with my partner in about 6 weeks, and she's currently paying all the housing expenses alone. Should we start the expense-sharing arrangement immediately when I move in, or is there some kind of grace period where we can figure out the logistics? I want to make sure we get the documentation and payment patterns established correctly from day one like several people emphasized. Also, for those who mentioned creating a simple written agreement - did you have yours reviewed by anyone (CPA, attorney) or just draft it yourselves? I'm trying to balance being thorough with not overcomplicating what should be a straightforward expense-sharing arrangement. Thanks again everyone for such detailed, helpful advice! This discussion has turned a confusing situation into a manageable one with clear next steps.