Confused about Form 1040 or 1099 for my rental income tax reporting?

You'll need to file Form 1040 (your individual tax return) and include Schedule E for your rental income. The 1099-MISC form isn't something you would file - that's actually a form that businesses use to report payments they've made to others. Here's how it works: As the property owner, you report all your rental income and expenses on Schedule E, which then gets attached to your Form 1040. Since you live abroad, you'll also need to be aware of FBAR filing requirements if you have foreign bank accounts over $10,000, and you may qualify for the Foreign Earned Income Exclusion (Form 2555) for any employment income you earn abroad (though this doesn't apply to your rental income). Make sure to keep good records of all rental-related expenses as these can be deducted - things like mortgage interest, property taxes, insurance, repairs, and depreciation on the property.

After struggling with this exact situation last year, I found an amazing solution that saved me tons of time and headaches. I was confused about how to properly report my rental income while living in Germany, and the online advice was all over the place. I discovered https://taxr.ai which analyzes your specific tax documents and situation, then gives you customized guidance. You just upload your docs or describe your situation, and it tells you exactly which forms you need and how to fill them out properly. For your situation, it would clarify the Form 1040/Schedule E requirements and identify all the deductions you're eligible for as a landlord living abroad.

Just wanted to follow up - I tried https://taxr.ai after posting my question here and it was seriously helpful for my complicated situation. I uploaded my previous tax return and some details about my rental property in the US, and it immediately identified that I needed Form 1040 with Schedule E, plus highlighted several landlord deductions I didn't know I could take while living abroad. It even explained the foreign bank account reporting requirements I was missing. Definitely worth checking out if you're confused about rental income reporting as an expat.

If you're trying to get clarification directly from the IRS about your specific situation, good luck with that! I spent WEEKS trying to reach someone at the IRS about my overseas rental situation last year. After 8 attempts and hours on hold, I found https://claimyr.com which got me connected to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they navigate the IRS phone tree for you and call you when they've got an agent on the line. The agent was able to confirm exactly which forms I needed and how to handle my foreign address with my US rental income.

I need to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it anyway since I was desperate to get answers about my rental property taxes before the filing deadline. I was convinced it wouldn't work, but within 15 minutes of using the service, I got a call back and was connected to an actual IRS tax specialist. I was shocked! The agent walked me through exactly which forms I needed for my rental income situation and explained how to properly report everything on Schedule E. Saved me days of frustration and probably prevented me from making filing errors that could have triggered an audit.

Don't forget about state taxes too! Depending on which state your property is located in, you might need to file a non-resident state tax return as well. I own property in California but live in Japan, and I have to file both federal (1040+Schedule E) and California non-resident returns each year.

I'm surprised nobody has mentioned depreciation yet. As a first-time landlord, you absolutely need to understand how depreciation works for rental properties. You'll need to depreciate the value of the building (not the land) over 27.5 years, which creates a significant tax deduction. This gets reported on Form 4562 and flows to your Schedule E.

As someone who's been through this exact situation, I can confirm that Diego's advice is spot-on. You'll definitely need Form 1040 with Schedule E for your rental income - not 1099-MISC. The 1099 forms are what OTHER people send to YOU and the IRS to report payments they made to you, but as a landlord collecting rent, you're not typically going to receive a 1099 from your tenant. A few additional tips from my experience as an expat landlord: 1. **Keep meticulous records** - Track every expense related to the property (repairs, maintenance, insurance, property management if you ever use one, etc.). These are all deductible on Schedule E. 2. **Consider setting up a separate US bank account** for rental income/expenses if you haven't already. It makes record-keeping much cleaner and helps with FBAR reporting if applicable. 3. **Don't forget about depreciation** - As Ethan mentioned, this is a significant deduction you shouldn't miss. Your $22,500 in rental income could be offset substantially by depreciation and other expenses. 4. **File early** - Being overseas can complicate things if you need to request documents or clarify anything with the IRS, so give yourself extra time. The fact that you're managing it yourself actually simplifies things tax-wise since you won't have to deal with 1099s from a property management company. Good luck!