Expecting a 1099-K for the 2023 Year? You may not receive one.

[Lorna170]

For those who are expecting to receive a 1099-K from AirBnB for the 2023 tax year.  It appears that we will still be waiting.

From the web:

New IRS tax rule: What is the ‘$600 rule’?

The America Rescue Plan requires third party settlement organizations, including popular payment apps and online marketplaces such as Etsy and eBay, to report annual earnings of more than $600 for the sale of goods and services on a Form 1099-K.

For example, if you sell your creations on Etsy or collectibles on eBay and you make more than $600 in one year, these companies will send you a 1099-K form for you to report your earnings to the IRS.

Prior to this new rule, people only needed to report the sale of goods and services involving more than 200 transactions within a year totaling over $20,000.

When will the $600 rule take effect?

The new requirement was supposed to be implemented last year, but the IRS delayed it. Because of the potential confusion involved in distributing an estimated 44 million Forms 1099-K and in the face of efforts to stop the tax change, the IRS has announced that the $600 threshold will take effect in 2025, and those affected will receive their forms in time for filing tax returns in early 2026.

Meanwhile, an interim threshold of $5,000 will be applied for the 2024 tax year, and affected taxpayers will need to fill out a Form 1099-K for the 2025 filing.

[Mike-And-Jane0]

@Lorna170 I just don't get this 1099K thing. Surely you still pay tax on earnings whether or not a 1099K is issued?

[Lorna170]

@Mike-And-Jane0  You would be amazed at how many hosts do not report rental earnings until forced to by the issuance of a 1099.  I actually walked a friend through putting their second home on AirBnB 4 years ago only to get a call this past tax season from them asking about the forms and how to fill them out -- they had not paid taxes on the rental income in several years.  

[Mike-And-Jane0]

@Lorna170 I guess it makes sense that the law was changed then!

[Susan5551]

hello Lorna !  now that 2024 is here, has there been any change in position for tax year 2023 ?  is airbnb going to issue 1099 or no ?

thanks for this useful intell!

susan

[Kalika0]

@Lorna170 So I made over $70,000 and had 251 booking and it says on my tax  page "no tax document issued."  How do I get a 1099?  I tried calling airbnb support and got a very sweet lady in India who really doesn't understand the way our tax system works.  She told me I met the criteria and should get a one zero 99 in a couple of months.   Where do I go from here to get one?

[Lorna170]

@Kalika0   I understand that you earned $70K -- Did you have 251 separate bookings, or did you book 251 nights in 2023?  

You obviously meet the dollar amount.  The transaction count is specific to the number of times AirBnB charged your guests.   

Disclaimer:  I am not an employee of AirBnB or the IRS.

From the IRS website:  IRS announces 2023 Form 1099-K reporting threshold delay.

This means that for 2023 and prior years, payment apps and online marketplaces are only required to send out Forms 1099-K to taxpayers who receive over $20,000 and have over 200 transactions. For tax year 2024, the IRS plans for a threshold of $5,000 to phase in reporting requirements.

[Alfonso487]

A couple of months?  When did you call and make your request?  That's crazy that airbnb wouldn't have this tax document issue under control.

[Natalie1182]

I have the same issue as a cohost. I only made about $1700 but my earnings says $0 for 2023 and there’s no 1099. The owner or main host thinks she needs to send me one but I’m no so sure. Back in 2017 that was the case but Airbnb are the ones who pay me out. I would hate for her to send me one and then I get another one from Airbnb. The April 16th deadline is coming up fast and I don’t want to leave anything off because it doesn’t matter if it was intentional or not I’ll still get into a lot of trouble if I do it wrong. 

[Kia272]

@Kalika0  Just declare your income and file your taxes. Why do you need a 1099?

[Kalika0]

This is really old I got the 1099 at the end of Jan. 

[Alfonso487]

SO  in my case if I only made about $12K in gross transactions for fewer than 200 transactions why did I receive a 1099 K?  It seems to me that Airbnb made a mistake?  Can it somehow be retracted?  

Also, is Airbnb going to be sending out a 1099-MISC at all?  This all seems very confusing and poorly implemented.  When I tried to contact someone from customer service they didn't have a clue.