Will my niece's CalFresh benefits be affected by rent payments to us? Tax implications?

When i had my nephew stay with me, we worked out that $450/month for everything (room, utilities, internet) was the sweet spot. He got the max CalFresh amount because that took a good chunk of his part-time income. Just make sure whatever u decide is reasonable for your area - they sometimes ask for proof if the amount seems off.

There are a few things to consider here: 1. For CalFresh purposes, your niece would get a shelter deduction based on what she pays toward rent/utilities. The higher her shelter costs (up to the maximum deduction of $693 for 2025), the more benefits she might qualify for. 2. Tax implications: If you're not running a formal rental business, occasional rental income from a family member might qualify as "rental income" on Schedule E, but you'd also be able to deduct related expenses. However, if the amount is below market value, the IRS might consider it a personal arrangement rather than a business one. 3. Documentation: She'll need to provide verification of the housing costs to the county office when she applies. A simple written agreement between you would suffice. 4. Reporting: Make sure the agreement clearly states what the money covers (portion of mortgage/rent, utilities, etc.). The most important thing is to be truthful and consistent in what you tell both CalFresh and the IRS.

I went through this exact situation last year with my cousin! Here's what I learned the hard way: 1) Having her pay for "her share" of utilities + internet + food separately from rent makes the most sense tax-wise. Those aren't rental income. 2) For CalFresh, they calculate benefits based on her income MINUS allowable deductions. Housing expenses are a major deduction - so yes, paying some form of rent will help her qualify for more benefits. 3) When we called it "rent" on paper, it created tax headaches for us. When we restructured as "household expense contributions" and kept it reasonable (about 30% of what a regular rental would cost), it worked better for everyone. 4) Make sure she gets a separate utility bill in her name if possible! Even if it's just the internet or cell phone. That helps with the CalFresh utility allowance. Honestly, the key is documentation and being consistent with both CalFresh and tax authorities about the arrangement.

yall is over thinkin this lmao. she can just TELL calfresh she pays rent and utilities, they never actually checked when i applied. just tell her to say she pays $500-600 for rent and $100 for utilities and shell get like the max benefit. they didnt make me prove nothin

I used to work for a county eligibility office (not in California, but the rules are similar). Here's the accurate info: 1. For CalFresh benefits, your niece's shelter costs (rent + utilities) are a deduction from her income, which can increase her benefit amount. The maximum shelter deduction for 2025 is $693 for most households. 2. If she has very low or no income when she first arrives, she may qualify for expedited services (benefits within 3 days) regardless of rent amount. 3. Tax implications: If you're charging below market rate to a relative, the IRS often views this as a personal arrangement rather than a business. You might not even need to report it if it's just covering your actual costs, but consult a tax professional. 4. Documentation: A simple written agreement stating the amount and what it covers is sufficient for CalFresh verification. The sweet spot is usually charging around 30-40% of what market rent would be - this gives her a substantial shelter deduction without creating tax complications for you.

I tried getting through to the CalFresh office for two days straight to ask a similar question for my brother-in-law, and kept getting disconnected or was on hold forever. Finally used a service called Claimyr (claimyr.com) that got me connected to a real person in about 10 minutes. They have a video demo at https://youtu.be/eZ19FHRETv8?si=_CXnXqNXbLl26WB8 showing how it works. The worker told me that for tax purposes, the best approach is to create a simple written agreement that clearly shows what portion is for the actual living space vs. utilities/other expenses. This helps both for CalFresh documentation and potential tax questions. Also, they mentioned that sometimes the income reporting thresholds for CalFresh can be different than tax reporting thresholds - so what might need to be reported for one might not need to be for the other.

my mom has me and my sister living with her and we both get calfresh. she made us each a letter saying we pay $550 rent plus $125 utilities and we both get good benefits. she doesnt report it on taxes cause she says as long as its just cost-sharing for household expenses its not really income. nobody ever questioned it.

what state is she coming from? if shes already gettin benefits in texas she should apply for CalFresh BEFORE her texas benefits end so theres no gap. also they gonna want proof of CA residency so make sure yall get her CA ID quick or add her to a utility bill

One thing nobody's mentioned yet - the amount she pays in rent can affect OTHER benefits too, not just CalFresh! If she might apply for CalWORKs or Medi-Cal, those programs also look at housing expenses differently. Just something to consider in the big picture.

I've been helping families navigate benefits for years, and here's what I recommend based on your situation: **For CalFresh optimization:** Charge around $400-500 for rent plus $100-150 for utilities. This gives her a solid shelter deduction (up to that $693 max) which will boost her benefits significantly if she's working part-time. **For tax purposes:** Keep it simple - create a written agreement that states she's contributing to household expenses rather than paying "rent." This helps avoid rental income complications. As long as you're not profiting beyond your actual costs, most tax professionals would consider this cost-sharing rather than taxable rental income. **Documentation tip:** Write up a simple agreement stating something like "Monthly contribution to household expenses: $450 (includes utilities, internet, and shared living space)." This works for CalFresh verification and keeps things clear for tax purposes. **Pro tip:** Have her apply for CalFresh, Medi-Cal, AND potentially CalWORKs all at the same time through the same application. The housing cost reporting will be consistent across all programs, and she might qualify for additional support while job hunting. The key is being honest and consistent across all applications. Don't overthink it - reasonable family arrangements like this are very common and expected.

Just wanted to add something that might help with the documentation side - when I helped my sister set up a similar arrangement, we found it really helpful to be specific about what the monthly contribution covers. Instead of just saying "household expenses," we listed it out like "$450 monthly contribution covering: shared utilities ($100), internet/cable ($50), groceries/household supplies ($150), and housing share ($150)." This breakdown served us well when she applied for benefits because it showed exactly where her money was going for the shelter deduction calculation. For taxes, it also made it crystal clear that most of what she was paying was just reimbursing us for actual shared costs rather than generating rental profit. The CalFresh worker actually appreciated having that level of detail during the interview - it made the verification process go much smoother. And having it written down ahead of time meant we didn't have to scramble to remember what we'd agreed on when questions came up later.

I'm in a similar situation helping my cousin navigate this! One thing I learned that might be helpful - when she does apply, make sure she applies online if possible rather than going in person initially. The online application lets her take her time to gather all the documentation and double-check everything before submitting. Also, since she's moving from out of state and will be job hunting, she might qualify for expedited CalFresh benefits (within 3 days) if her income is very low initially. This can be a huge help while she's getting settled and looking for work. The $450 range that others mentioned seems spot-on based on what I've seen work well. Just make sure whatever amount you decide on is something she can realistically afford once she starts working, because CalFresh will want to verify her ongoing ability to pay that amount during reviews. One last tip - keep copies of everything! The written agreement, any bank transfers or receipts showing payments, utility bills, etc. Having a paper trail makes everything so much easier if questions come up down the road.

I went through something very similar when my younger brother moved in with us from Arizona last year! Here's what ended up working best for our family: We settled on $475/month total - $325 for his share of housing costs and $150 for utilities/internet/household expenses. This gave him a solid shelter deduction for CalFresh while keeping our tax situation simple since most of it was just cost-sharing rather than profit. The key thing that helped us was being upfront with the CalFresh worker during his interview about the family arrangement. We had a simple one-page agreement that laid out what his monthly contribution covered, and they were totally fine with it. No complicated paperwork needed. Tax-wise, since we weren't making any profit (our mortgage and utilities actually cost more than what he was contributing), our accountant said we didn't need to report it as rental income. Just keep good records showing your actual housing costs in case anyone ever asks. One thing I wish I'd known earlier - make sure she gets her own California ID as soon as possible! That was the biggest holdup in his application process. Everything else went pretty smoothly once we had that sorted out. Your niece is lucky to have family looking out for her like this. The whole process is much more straightforward than it seems at first!

I've been lurking here for a while but wanted to jump in since I just went through this exact situation with my sister-in-law who moved here from Nevada a few months ago. What really worked for us was keeping it simple and transparent from the start. We charged her $425/month broken down as $275 for housing and $150 for her share of utilities, groceries, and internet. This amount gave her a good shelter deduction for CalFresh (she qualified for about $250/month in benefits) while being genuinely affordable for her once she found part-time work. For the agreement, we just typed up a one-page document that said "Monthly household contribution: $425 covering shared housing costs, utilities, internet, and household expenses." We both signed it and dated it - nothing fancy, but it satisfied CalFresh verification requirements perfectly. Tax-wise, our CPA said since we're basically just cost-sharing and not profiting, there's no rental income to report. The key was being able to show our actual housing costs exceed what she pays us. One practical tip: help her gather ALL her documents before applying - birth certificate, Social Security card, any ID she has, and bank statements. Having everything ready made her interview go super smoothly. The worker was actually really helpful once she saw we had our paperwork organized. The whole process was way less stressful than I expected! Your niece is going to do great with family support like this.