Taxes

[Carol6919]

Hello there, Airbnb pays a lump sum tax pay out 7% to my local county (Montgomery) government for all hosts in my county.

Shouldn’t the county send me a statement of my individual amount based on my earnings? 
Thanks!

[Kia272]

@Carol6919 Why should the county send you this? YOU didn't pay it. AirBnB paid it on your behalf. It's money you never saw or paid out. Since the county is being paid in a lump sum, how can they know what your share is? I'm confused by your concern about this. 

[Carol6919]

Thanks for your reply. The 7% tax was taken out of each booking and paid to the state, so this is the tax that I paid on my earnings.
This was confirmed by Airbnb and the state licensing department for short term rentals in Montgomery County.

 I am awaiting a response from the excise tax department.

[Kia272]

@Carol6919 I still don't understand. The booking itself was taxed, but you were not. You never saw that money, so it wasn't taken from you. It's a transaction that happened externally to your profit and loss. 

What is your concern?? 

[Kia272]

"so this is the tax that I paid on my earnings."

@Carol6919 It's not a tax on YOUR EARNINGS. It's occupancy/lodging tax. Big difference. 

[Brian2775]

I would appreciate talking to you by phone if at all possible about taxes and ABnB. **

**[Phone number hidden due to safety reasons - Community Center Guidelines]

[Lorna170 · Accepted solution]

@Carol6919   The County is not going to send you anything.  You should be filing monthly, quarterly or annual tax returns with the County and any other tax entity, like the State or your municipality showing what you earned from AirBnB and that AirBnB collected and paid the taxes owed on your behalf.

Talk to an accountant or the State/County/Municipal tax office.

[Carol6919]

Hello Lorna, thank You for your help! I finally reached the local county tax department, they were able to answer my question.

[Dee1605]

Do you know if Airbnb requires you to fill out a W9?