Does renting a room affect my taxes or exemptions?

Renting out a room in your primary residence can create taxable rental income you need to report, even though the home as a whole is still your primary residence for most other purposes. It generally does not disqualify you from the homestead exemption, since that exemption is based on the home being your primary residence, not on whether you rent part of it. Expenses tied to the rented space may become partly deductible, which is a specific calculation a CPA should run. Ask a tax professional before you start renting a room out.