You are required to report any income you receive from Arrived Homes on your tax return.
Arrived will send you the corresponding summarized tax disclosure form (specifically a 1099-DIV) for your investment by the end of January of the following year, so that you can file your taxes appropriately.
As a mortgage REIT, the Private Credit Fund is eligible for Qualified Business Income Deduction, which lowers taxable income by 20% (Sunsets after 2025). Note that the Private Credit Fund does not benefit from depreciation.