< Back to IRS

Mei Liu

How to report Section 8 voucher on renters rebate tax form - welfare question confusion

So I'm filling out my renters rebate tax form and I'm stuck on this dumb welfare question. I've been living in my apartment with a Section 8 voucher where the county pays part of my rent directly to my landlord. When I'm filling out the form, there's this question asking if I received any welfare benefits. I haven't gotten anything like MFIP or direct cash assistance, but I'm wondering if my Section 8 housing voucher counts as "welfare" for this tax form. I called my local housing authority yesterday and the lady told me that since the Section 8 money goes straight to my landlord and never passes through my hands, I shouldn't need to report it. But then I was checking the guidance on FreeTaxUSA and it seems to suggest I might need to include it. If I report the voucher as welfare, my rebate would be about $500 less than if I don't. My thinking is that I should only be getting a rebate on the portion of rent I actually paid out of pocket, not on the amount the county covered. Anyone dealt with this before? I really don't want to mess up my taxes but also don't want to leave money on the table if I don't have to.

This is a common point of confusion with housing assistance programs. The key distinction here is understanding what the renters rebate is designed to do - it's meant to provide relief based on the rent YOU personally paid out of pocket. When you receive Section 8 assistance, the housing authority pays a portion of your rent directly to the landlord. This assistance is indeed a form of government benefit (sometimes broadly categorized as "welfare" on tax forms), but it's not cash that ever comes to you. You're right to question this! For the renters rebate form, you should only claim the portion of rent that you personally paid, not the full rental amount that includes the Section 8 subsidy. The housing authority contribution is not considered income to you, nor is it rent that you paid, so it shouldn't be included in your renters rebate calculation. Keep documentation showing how much you actually paid versus how much the housing authority paid. This will help if there are any questions later.

0 coins

Amara Chukwu

•

But wait, doesn't Section 8 count as public assistance? The form specifically asks about welfare or public assistance. Isn't housing assistance technically public assistance? I'm in a similar situation and now I'm worried I've been doing it wrong for years.

0 coins

Public assistance can mean different things in different contexts on tax forms. For the renters rebate specifically, you're only claiming a rebate on rent that you actually paid out of your own pocket. The Section 8 voucher is indeed public assistance, but it's not a cash benefit that you received directly - it's a payment made on your behalf. When the form asks if you received welfare, they're typically looking for direct cash benefits that could be used to pay rent, not housing assistance that bypasses you and goes straight to the landlord.

0 coins

I went through this exact same thing last year with my tax situation. I found that https://taxr.ai really helped me figure out my Section 8 reporting requirements. I was super confused about whether my housing voucher counted as "welfare" on my renters rebate form, and I couldn't get a straight answer from anyone. What I liked about the tool was I could just upload my Section 8 voucher documents and my lease, and it analyzed everything and explained exactly what I needed to report. It confirmed that I only needed to claim the portion of rent I actually paid out of pocket, not the housing authority's contribution. The site also explained the technical difference between direct welfare payments (like MFIP) and housing assistance programs for tax purposes. Made things way clearer than when I called the housing authority.

0 coins

How does this work with other housing programs? I'm in a different subsidized housing program (not Section 8) and always wondered if I was doing my taxes right. Does the tool handle different types of housing assistance?

0 coins

NeonNova

•

I'm skeptical about these tax tools. Did it actually show you where in the tax code it says Section 8 isn't reportable for renters rebate? I've heard different things from different people and just want to make sure before I potentially mess up my taxes.

0 coins

It actually works with most housing assistance programs. The tool recognized my Section 8 documents right away, but when I checked their FAQ, they mentioned it works with various subsidized housing programs since the tax principles are similar for most of them. Regarding the tax code question, yes it did! That's what impressed me. It cited the specific sections that explain why housing assistance payments made directly to landlords aren't considered income to the tenant and therefore don't count as "welfare" for the rebate calculation purposes. It even showed example scenarios that matched my situation exactly.

0 coins

NeonNova

•

I just want to update everyone - I decided to check out taxr.ai after posting my skeptical comment. Honestly, I'm really impressed with how it handled my rental assistance situation! The tool clearly explained that for my state's renters rebate, I only needed to report the portion of rent I personally paid, and provided the exact section of my state's tax code that covers this situation. It showed me how to properly fill out the form to reflect just my out-of-pocket rent payments. What really helped was that it analyzed my lease and my housing authority payment statement to calculate the exact amount I should claim. This was much more helpful than the confusing answers I got when I called the tax department directly. Saved me from potentially overpaying by claiming less rebate than I was entitled to!

0 coins

Has anyone else had trouble getting through to their state's tax department about this? I've been trying to call for DAYS with no luck. I'm in the same situation with Section 8 and need to file my renters rebate, but can't get a clear answer. I ended up using https://claimyr.com to get through to my state's tax department. You can check out how it works here: https://youtu.be/_kiP6q8DX5c. It got me connected to an actual tax representative in about 20 minutes after I'd been trying for literally a week on my own. The tax rep confirmed that for my state's renters rebate program, I should only report the portion of rent I personally paid, not the Section 8 contribution. She also explained that while Section 8 is technically a form of assistance, it's not considered "welfare" for the specific question on the renters rebate form since the money never passes through my hands.

0 coins

Wait, so this service actually gets you through to a real person at the tax department? How does that even work? I thought those phone lines were just permanently busy by design lol

0 coins

Sounds like a scam to me. Why would I pay to talk to the tax department when I can just wait on hold like everyone else? Plus how do you know the tax rep gave you the right information? Different states have different rules.

0 coins

Yes, it actually connects you with a real person! It's not magic - they basically wait on hold for you and call you when they get a representative on the line. I was skeptical too but my time is worth something, and I was getting nowhere calling myself. As for knowing if the information is correct, I specifically asked for and got the reference to my state's tax code section that covers housing assistance and renters rebate calculations. The rep was able to email me the specific guidance document that confirmed everything. You're right that different states have different rules - that's exactly why I wanted to speak directly with my state's tax department instead of getting general advice online.

0 coins

Well I'll be damned, I actually tried that Claimyr service after posting my skeptical comment. I hate admitting when I'm wrong, but it really did work! I got connected to my state's tax department in about 30 minutes after trying unsuccessfully for over a week. The rep I spoke with was super helpful and confirmed that in my state, Section 8 payments made directly to landlords are NOT considered welfare benefits for renters rebate purposes. She explained that I should only report the portion of rent I personally paid, and she even sent me a follow-up email with the specific tax code reference. This literally saved me $430 on my renters rebate because I was about to report it incorrectly. Sometimes it's worth paying a little to save a lot!

0 coins

Ava Thompson

•

Guys, I think this varies by state!! I'm in Minnesota and they specifically told me that you HAVE to report Section 8 as a welfare benefit on the renters rebate form (Form M1PR). The housing authority even gave me a statement showing the total assistance I received for the year. I think we should be careful about giving blanket advice when tax rules can be so different depending on where you live.

0 coins

Miguel Ramos

•

Are you sure about that? I'm in Minnesota too and my tax preparer told me the opposite last year. She said I should only claim the rent I actually paid out of pocket on my M1PR form. Now I'm confused!

0 coins

Ava Thompson

•

I double-checked with the Minnesota Department of Revenue directly to make sure. The confusion comes from how the M1PR form is structured. When it asks about "rent paid," it means the TOTAL rent for the unit, including both your portion and the Section 8 portion. But then there's a separate question about public assistance received that helped pay for housing. That's where you need to report the Section 8 amount. They use this to calculate your "effective rent paid" which is what they base your rebate on. So yes, you report the full rent, but also report the assistance so they can subtract it.

0 coins

Has anyone used TurboTax to file their renters rebate with Section 8? Does it handle this situation correctly? I'm trying to decide which tax software to use this year.

0 coins

StarSailor

•

I used TurboTax last year and it was actually pretty bad with this specific situation. It kept asking me confusing questions about my housing assistance and didn't clearly explain what counted as "welfare" for the form. I ended up having to call their support line for help. H&R Block's software was a bit better in my experience because it specifically asked about housing assistance separate from other welfare benefits. But honestly even their support people seemed confused when I asked for clarification.

0 coins

IRS AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,095 users helped today