Roommate - Rent, weird question

[NetSkyBlue]

I live in an apartment with a roommate, and we split rent and utilities. All the utilities are in my name. To make life easier, she writes me one check a month for her half of all of the above, and then I pay the rent and utility bills. Her name is on the rental agreement, but not utilities.

I wonder, if I get audited for any reason at tax time, are they going to consider this "income" that I should be paying taxes on? I truly hope not, because all I'm doing is handling her money and making her rent and utility payments.

I hope I never get audited, but I'd like to know.

[BMEPhDinCO]

Probably not - they might audit HER, since gift taxes are the person who GIVES the money, not who gets it... but that's a $13,000 per year limit, so I hope y'all aren't exchanging that much.

Just keep track of what it's for and maybe write down a document of when you got it, what it was used for, how much the final bill was, etc.

But most people don't get an audit from the IRS.

[MonkeyMama]

Reimbursements are not taxable income.

I suppose it's a good idea to have some "proof" in case of audit, is all. I think the fact that the amount would always match 1/2 your utility bills, is ample proof. As long as you have access to the bills, or keep paper copies, to show this.

[Joan.of.the.Arch]

Idea: Have your roommate make out the check to the utility company, payable to your account number.

[thefrugallery]

I would continue the way you're doing it, and just keep excellent records. Being the utilities are in your name, I wouldn't want to trust the roommate to pay her portion of the bill direct to the utility company. If she didn't pay and you weren't aware (because you weren't expecting the money from her) late fees/extra charges might be incurred. This way at least you're on top of what is going on with the account in your name.