1099-k formula

[Paul-and-Laura1]

My 1099 figures do not equal my pay outs.  I understand that Airbnb makes tax payments on my behalf that may be included in the 1099 figures.  I've looked at it from several angles and I can't get the numbers to work.  I feel like it should just be a simple formula like A + B = 1099 but I have yet to crack the code.  Tried calling ABNB but CS was clueless and submitted a "case".  I'm hoping that someone here knows the answer so I can continue working on my taxes today rather than waiting for my "case" to be resolved.

[Mike-And-Jane0]

@Paul-and-Laura1 I would expect the 1099 form earnings to be about 3 (in our case 3.6)% higher than what you actually received. In the UK we report the gross amount of the payout to us and then expense the service fee (3% +20% vat on the 3%).

[Paul-and-Laura1]

Thanks, but the 1099 is more like 11.4% higher than gross payout.

[Lorna170]

@Paul-and-Laura1   It has been my experience that a 1099 (and I have received 1099s for properties for 15 years) reflects the total amount that is charged to the guest for the accommodation and all relevant transactions, even those that are not paid to me.  

So, for each guest, the 1099 would tally what the income was, including the service fee paid to the OTA, the service fee charged by the OTA for processing the guest credit card, any additional fees for pets, refundable deposits, and the taxes.  If there is a refund attached to a reservation, the refund is NOT deducted as it was income at some point.

I have always been able to get my 1099s to tally when I include all of those monies.  I then make sure that I have properly shown the deductions (OTA fee, credit card processing fee, refundable deposits, taxes and other refunds) on my schedule E (or C) so my actual earned income is properly represented.

If that does not help, you might wish to speak with a tax professional so that you comprehend what a 1099 from an OTA is going to show and how you adjust your taxes to reflect your actual receipts.

[Paul-and-Laura1]

Thank you for your input Lorna,  unfortunately that doesn't solve the problem.  The problem is that when I add those fees, they don't align with my 1099.  I have spoken with my accountant, and he says that Airbnb should be able to tell me what fees/taxes/percentages etc. are included in the 1099 number.  Of course, my accountant understands what should be in the number but since the math doesn't work it should be Airbnb that explains the computation that brings them to the 1099 #.  Airbnb does not respond to inquiries.  No matter how I do the math including this fee or excluding that fee they don't line up.  If it was close, I would shrug it off but it's significantly different.  BTW, Airbnb hasn't been in business for 15 years so you may have been receiving 1099's for 15 years but not from Airbnb.

[April197]

Did you figure out? We have the same problem and I can't figure it out either. 

[Cindy28]

In 2023, I am dealing with the same problem. Did you ever resolve it on your end? How did you end up handling this?

[Filomena57]

I am going to deduct cleaning fee and service fees.

[Mike-And-Jane0]

@Filomena57 Tax jurisdictions do things in different ways BUT most require you to declare the gross revenue (including all fees and service fees). Then you deduct service fees and other costs such as what you pay your cleaner which gives the net taxable income.

In the UK this is particularly important otherwise the figure required to determine if you have to register for VAT is wrong.

[Rorke0]

I figured out that ABB payouts seem to be off a day each month.   I realized when I looked at 2021 1099 that none of the monthly numbers I got from gross payouts matched.  Going back and comparing printouts, I figured out if you have a payment on the last weekday of the month, it kicks into the next month and weekend dates are applied to Monday.  So for 2/27 which was a Sunday, applies to 2/28 Monday.  However, the payment is released in ABBs numbers the next day, so it goes to March.  So on the other side my entry for 1/29 on gross payouts is applied to February numbers.  Because 1/29 is a Saturday, which means it moves to Monday the 31st, which will show on ABB 1099 under February.  At least that's how it worked for me in 2021.  All dates were off by 1 day.  If the gross earnings is dated  1/31, its actually released on 2/1.  Hope this helps and doesnt add to the confusion

[Brett393]

I also have the same issue and in addition have issue with including the cleaning as income when I do not get any profit from cleaning but rather the money goes to the cleaning company. They have no way to fix this issue and refuse to acknowledge it as a problem. I wanted to have the guest send payment for cleaning directly to the cleaning company but Customer Support said it is against the rules.

[Lorna170]

For Hosts (listing owners)   --  From the AirBnB Help pages:

Gross payment transactions: A 1099-K form reports gross payment transactions processed on your behalf through Airbnb’s platform. The reported amounts represent gross reservation totals (including Airbnb taxes/Airbnb fees + any cleaning fees/pass-through taxes, which you instructed us to collect and pay to you + any co-Host payouts, if applicable) and Resolution payments received from guests.

The amounts are reported before the deduction of Airbnb fees/commissions. The totals do not adjust for reservation alterations and cancellations which were made after guest check-in. Payouts shared with co-Hosts through the co-Host payouts feature will not affect the amount which will be reported to the listing owner for tax information reporting purposes; the Host's Form 1099-K will include the full gross reservation amount.

We recommend that you consult with a tax professional to understand how to report your 1099-K on your tax return and any deductions which may be available to you.