Based in UK and started to have US tax withheld

[Amanda1552]

UK based host.
payments  this year have deductions for US tax.
No emails etc. about it.
 
Anyone else had this?

[Michelle53]

@Amanda1552  You would probably need to contact a tax professional. There is a tax treaty between the US and the UK to prevent double taxation. 

Since the money has already been withheld, you would need to claim it back on your UK tax return, or have it deducted from your tax liability as tax already paid.  Airbnb will not issue a refund for it. 

[Amanda1552]

I’m not sure that the UK government would regard this as a great deduction as paid to US erroneously. 

[Jose-Humberto1]

Hi Amanda, I have the same issue and some people posting replies on this thread also posted misleading replies on mine. 

It seems like Airbnb is unlawfully withholding these amounts, probably due to some incorrect characterization of our tax status. 

I am trying to contact customer support but they are not answering anymore.  I will try to find a contact to address this matter before seeking consumer protection, if I find it, I will send it to you.  If you do, could you return me the favor that would be great! 

Thank you and good luck! 

[Michelle53]

@Jose-Humberto1   If you are referring to something I posted, you may address me directly. I have posted links for you from Airbnb's own help pages, as originally posted by a moderator of this forum.

@Quincy 

[Jose-Humberto1]

@Michelle53 chill, do not make this personal.  I am just trying to help another community member who is having the same issue as I have. 

I understand you are in good faith trying to help, but the links you post are not applicable to @Amanda1552 situation  and mine. 

Be cool and have a great day! 

[Sarah977]

@Jose-Humberto1  Yes, the links are applicable! You need to fill out a W8BEN form to ensure you are not subject to US withholding tax.

Simply uploading your RFC number does not accomplish this. 

You are not helping another poster- you are refusing to read or understand the info Michelle provided. 

Look at the IRS W8BEN form and you will see that it is for non-US residents and citizens for the purpose of exempting them from US taxes. That is what you need to fill out. No need to dialogue with customer support or consumer protection agencies.

[Jose-Humberto1]

Hey Sarah, a W8-BEN form must be filed by US foreigners when they are the beneficial owners of an amount subject to US income tax.  In my case (and it seems like @Amanda1552 ‘s case too but I would not be able to confirm) I do not have any amounts subject to US income tax as I am a Mexican resident and citizen, my posting is a Mexican posting, of a property located in Mexico (even my guest was Mexican although this is not relevant for purposes of income tax). 

In short, you are not providing the correct answer as this is a manifest error by Airbnb.  

[Sarah977]

@Jose-Humberto1  No, it is not for US foreigners who are subject to US tax. It is the opposite- it is for non-US persons. I don't know why you are being so stubborn about this. 

[Amanda1552]

I’m my case and I think Joses we have nothing that would be regarded as a benefit to the US. 
I have completed the form for the sake of good order but it simply doesn’t apply to me. 
- I’m English, live in England with one English air b n b listing. 

And there are few other people with this issue in the UK it’s either a glitch or they acting on something incorrectly. 

But no one is replying from support to say which it is 🤷‍♀️🙈

[Amanda1552]

Agreed!

[Mike-And-Jane0]

@Amanda1552 @Jose-Humberto1 My belief is that US law requires Airbnb to withhold taxes due to the US government AND to demonstrate that they are doing everything possible to ensure they capture all said withholdings. It appears they are randomly (?) selecting people who are not subject to US tax and requiring them to fill out form W8-BEN. I assume this allows them to prove to the UG government that they are properly withholding taxes.

Sadly Airbnb are not being as clear as they could be in this and so people are, I fear, ignoring the request to fill out said form as they don't think it applies to them. This would probably have been my view had I received one.

Hopefully, once people fill out the form then Airbnb can reverse any tax withholdings. If not then people will be in a nightmare situation as I disagree with @Michelle53 - The dual tax arrangements do not deal with tax paid/collected in error and for a UK national to try to file a US tax return to get their money back will be a nightmare scenario.

Perhaps if Airbnb do not repay the withheld taxes after people have filled in the form then a small claims court case against Airbnb in the UK would likely be successful. It would certainly be easier than entering the US tax system which is pretty well impossible without a US tax ID.

[Michelle53]

@Mike-And-Jane0    Here in the US there is the ability to report foreign taxes paid on one's tax return in order to have that credited against one's total tax liability. 

I'd be surprised if the same scenario isn't present on UK tax forms (or any other country's tax forms).  I'm not suggesting someone enter the US tax system and file a US tax return. I'm suggesting people file a tax return as they normally would, in their home country, and request a credit for foreign taxes paid on the income they were going to report on their local tax return anyway, so they don't get taxed twice.

https://www.gov.uk/tax-foreign-income/paying-tax

The tax treaties between countries generally include language that prevents double taxation on income.

Once withholdings are deducted, they are, essentially, money owed to the IRS, which a company is liable to pay over, irrespective of whether it was a calculation error, incorrect deduction or any other scenario. They don't get refunded directly. 

This can, of course, be confirmed by contacting a local tax professional. Perhaps someone should reach out to their friendly local accountant, ask the question, and post the response. 

[Mike-And-Jane0]

@Michelle53 the dual tax provisions only apply to tax properly collected in the second country. The USA taxing income from a UK national with property in the UK and no links to the USA is not a proper tax and hence could not be claimed against in the UK.

As with so many things Airbnb - They try to do the right thing but either through mistakes or poor communication they manage to screw it up.

I think, if Airbnb don't sort it out, the simplest solution is to take them to court in the UK.

[Michelle53]

@Mike-And-Jane0  Under US law, it is money properly collected. It is backup withholding which may be collected if the individual hasn't demonstrated that it is not required. 

https://www.irs.gov/taxtopics/tc307#:~:text=When%20it%20applies%2C%20backup%20withholding,dividend%2....

[Amanda1552]

Yes I would go via small claims.
But didn’t get an original request to complete the form. 

I think some listings have been incorrectly characterised but not sure why or how many and presumably they will either: 

- admit mistake and refund 

- make it our problem to get the US to determine our status. 

As I have no idea what the trigger and can’t see any reason for one, I’m hoping simple mistake 🤗