PayPal Payout Fees?

[Jay18]

Greetings all,

I am a new host and trying to determine my payput method. PayPal is convenient for me, but wondered if any fees are subtracted from the final payout amount.

As an example, say I have a $100 balance due me from airbnb.com after their fee, host fee, etc.

Should I expect the net $100 to be deposited to my PayPal account, or would there be some deduction(s) and I would receive something less than $100?

Thanks in advance,

Jay

[Resort-Vacation-Rentals0]

We skimmed this thread and were surprised not to see the correct answer anywhere (unless we missed it):

PayPal will not deduct any fees from payments made to your PayPal account from any big OTA like AirBnB or TripAdvisor -- regardless if paid out to a personal or business PayPal account -- because those companies have bulk agreements with PayPal.

However, we did once allow a small OTA to payout to PayPal assuming there would likewise be no fees but there were.  We found out that this is why and luckily got the (huge) amount in fees withheld by PayPal refunded to us and we switched to payouts to our bank account just for that smaller OTA.

[Resort-Vacation-Rentals0]

Our question is, what do we do to prevent double reporting on the same income paid by AirBnB to our PayPal account, as both companies will issue a 1099-K form to us and the IRS, and in 2022 the threshold drops way down from only if over $20,000 in income and 200 transactions to anyone making more than $600 -- regardless of transactions.  So now the majority of hosts will be receiving those forms at the end of this year.

TripAdvisor once told us we did not have to provide Tax ID info since paid out to PayPal who reports it to prevent double reporting, but AirBnB has said no such thing and we can't find the answer anywhere (and we asked reps at both AirBnB and PayPal to and none knew).  Very surprised this issue hasn't been addressed, but if any of you have a link please let us know!

[Resort-Vacation-Rentals0]

UPDATE on this issue:

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@Resort-Vacation-Rentals0 wrote:

Our question is, what do we do to prevent double reporting on the same income paid by AirBnB to our PayPal account, as both companies will issue a 1099-K form to us and the IRS, and in 2022 the threshold drops way down from only if over $20,000 in income and 200 transactions to anyone making more than $600 -- regardless of transactions.  So now the majority of hosts will be receiving those forms at the end of this year.

TripAdvisor once told us we did not have to provide Tax ID info since paid out to PayPal who reports it to prevent double reporting, but AirBnB has said no such thing and we can't find the answer anywhere (and we asked reps at both AirBnB and PayPal to and none knew).  Very surprised this issue hasn't been addressed, but if any of you have a link please let us know!

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This is not an issue because payouts deposited to your PayPal account is not income.  The money AirBnB charges on your behalf to guests and the subsequent payments they make is income.

This is the same as deductions made by your employer's paycheck for Social Security, etc.  When you deposit that paycheck into your bank it isn't again taxed as income by your bank.  It is a deposit.

The point is moot however (for now anyway) because the U.S. government decided to postpone the much stricter threshold at the last minute during the final week of 2022.  So threshold remains that only those receiving 200 transactions or more that equal $20,000 or more per year will have their income reported and receive a 1099K.

[Backlinks0]

Say Goodbye to Transaction Fee Worries **[Link removed due to safety reasons - Community Center Guidelines ]