Tax ID requirement

[Kim1091]

Can anyone assist me in understanding why we are required to provide our tax ID information and our beneficiary prior to December 1? I have been trying to look up the Bill they have listed but still cannot find good reason. If you can assist, I would greatly appreciate it. 

[Mike-And-Jane0]

@Kim1091 Surely they just need the information so they can report earning in a timely manner post the end of the year. Is there some reason why you wouldn't want them to have this information prior to the end of the year?

[Kia272]

@Kim1091  It's exactly as @Mike-And-Jane0 said. 

When you earn income, you have to pay taxes on it. AirBnB is obligated to report your income. 

The beneficiary request is something different and shouldn't have an impact on the income reporting issue. 

If you're  working and earning income in the US, I'm confused as to why this is confusing to you. 

[Agon38]

Hi Kia,

I would need help on clarification with this, as I'm super confused.

I'm a non-US Citizen, I don't have a listing in the US (and never had), I've never stepped foot in the US, and am required to fill in the forms. The only thing I have is a Payoneer account in USD as currency for my payouts. I have chosen this way back, as coming from Kosovo there were no possibilities for other payout methods with local banks or even Airbnb options.

I tried to explain it to Airbnb support, but they told me that W-8BEN is the form for me. Still don't understand why I should fill them.

Any help or explanation is very welcome.

Thank you.

Agon

[Kim1091]

We have been with Airbnb for four years and they are reporting this information. Has something changed in reporting? If not, I was a little concerned with hacking since we have been with Airbnb for that many years. 

[Michelle53 · Accepted solution]

@Kim1091  The American Rescue Plan Act was signed into law on March 11th of this year, 2021.  Key provisions are here. 

https://home.treasury.gov/news/featured-stories/fact-sheet-the-american-rescue-plan-will-deliver-imm...

Changes to 1099-k reporting requirements are here. 

https://www.twrblog.com/2021/03/american-rescue-plan-act-clarifies-scope-of-form-1099-k-reporting-an...

Formerly, payment processors (Airbnb, Uber, Paypal etc. ) issued 1099-k forms to folks who had at least 200 transactions and $20,000 worth  of revenue. 

That threshhold has been reduced to $600 and no minimum number of transactions, effective December 31st, 2021.   So if you earn $600 or more in 2022 you are eligible to receive a 1099-k. 

Your tax ID is required for processing a 1099-k. If it is not on file, you are subject to backup income tax withholding of 30% starting on January 1st, 2022.

[Kim1091]

Thank you Michelle.

[Susan4613]

I am new to hosting and Airbnb needs a tax id number.  I live in Georgia.  Do I need a tax ID or can I use my SSN?  Also, I don't understand what a FATCA code is.  Any and all help would be appreciated.