I wanted to present the situation with as much details. I wasn't sure if Schedule E (rental) was way to report the income if they are sharing household expenses. Was trying to find something of that nature in Pub 527; whether its shared household expenses two families living in a home, now that I am diving more into this vs. rental of room.  Just tryin to see if should it be a schedule E and use all the other deductions that fall under Schedule E or use Other Income Schedule 1 line 24 other  taxable income, which is just reporting the income received from the room.

So many scenarios with mixed family situations. Here trying to gather intel on how others view this situation and thank you again for input.