2021 1099K

[Victoria1128]

Hello, I received a 1099K this week regardless that I did not meet the threshold for 2021. I have called for over 3 days and being passed around. I was told a Case Manager will call me and still no calls to date.  Just wondering if other hosts had same experienced? I don’t know what to do to rectify the oversight they made. Thank you 

[Mike-And-Jane0]

@Victoria1128 the threshold has been reduced to $600 I believe. Are you above this amount?

[Emilia42]

@Mike-And-Jane0 That takes effect this year (2022 tax year.) 

[Mike-And-Jane0]

@Emilia42 do you still need to declare the income even if it is below the 1099K threshold?

[Emilia42]

@Mike-And-Jane0 

Well, technically you always have to report any income over $600 a year on your taxes.

[Victoria1128]

Hello everyone ! Thank you for your responses. I am aware of the new 2022 ARPA. The 1099K I received was for 2021 which is absolutely incorrect. I did not meet the threshold. Now I wonder if air bnb sends a copy of my 1099K to the IRS and what I can do to correct their oversight? Thank you 

[Mike-And-Jane0]

@Victoria1128 assuming you are not trying to evade tax why does it matter if you have a 1099K? 

[Victoria1128]

@Mike-And-Jane0  Hello Mike. Thank you for your response. Definitely I am reporting my income. The issue is that they inadvertently issued a 1099K regardless that I didn’t meet the threshold. On top of this mistake. The total gross income stated on the Form is incorrect and higher than my actual 2021 gross income. I am not receiving any help from

their Agents.

[Patti120]

Hi Mike and Jane,

I have the same issue with the overstatement  of income on the 1099k I received and needed to escalate the conversation the accounting manager and David Stephenso, CFO for Airbnb in the States. Today I sent this message to two of the Admin people on the community forum after reading Sybe's response on this subject:

Hi Sybe, 

I read your response to the host that notified Airbnb about the incorrect 1099k forms received. I have been in contact with the Accounting Department in San Franciso and through the mail system with David Stephenson, CFO about the incorrect 1099k form I received. 

The 1099k was generated by the Airbnb Credit Card Company, third party. It is based on the fees collected from the Guest via credit card payment. I was provided with the 2021 Airbnb accounting justification for my account which shows the net payout (amount is correct), and was told to add back in the 3% host fee ( amount is also correct) and the cleaning fees (not correct as their were adjustments obviously made to make the account balance between the Airbnb deposits made into my bank account and the Airbnb 1099k). 

My accountant is making the adjustments so I may get my 2021 taxes filed with the IRS on time. There is a gap of $2581 over statement of my earnings. Hosts should not have to pay income tax on earnings they did not receive. 

Please be aware this business practice Airbnb has implemented is based on income from the Guests not the payments made to Hosts. The discrepancies are significant when multiplied by the number of Hosts there are.  It would not surprise me if there is a restatement of Airbnb Company earnings due to this accounting "business practice" issue in the future. 

This is an ongoing problem. 

Sincerely,

Patti

You will probably not receive a corrected 1099k but if you have the Airbnb justification from their accounting department you will have insight into where the issues are with their accounting and your account. It took me about 6 weeks to get answers and they arrived after I escalated, not before. 

Customer service is nice and very competent with Guest issues but definitely not the accounting ones. I did have to upload to the Customer Service person and Fed Ex to the Accounting Manager and CFO actual copies of my bank statements showing the deposits so they could see first hand the problem. Conversation gets you nowhere because there are literally, millions of Hosts. I hope Airbnb gets this "glitch" solved by 2022. I do not want to pay taxes on income I did not receive. I suspect no other Host wants to either. 

Best,

Patti

**[Personal details removed in line with the Community Center Guidelines]

[Mike-And-Jane0]

@Victoria1128 So the 1099 itself isn't a problem. Does the gross income figure include the Host service fee? This, whilst not remitted to the host, would be included on a UK tax return in the gross income section.

[Victoria1128]

@Mike-And-Jane0 @Thanks Mike. I guess I just have to figure it out and do a manual

calculation based on my yearly gross income and deduct service fees I paid air bnb. I thought of reaching out to other hosts to learn from their past experiences dealing with air bnb on this subject. Have a good rest of your day!

[Patti120]

@Victoria1128   Yes it does and the cleaning fees. 

[Patti120]

@Victoria1128  Yes it does and the cleaning fee.

[John-And-Merian0]

We received a 1099K for 2021 as well.  Our payouts were much less than half of the supposed $20000 threshold.  We were quite surprised! 

[Victoria1128]

@John-And-Merian0 Hello John. That’s unfortunate as well. I will let you know if I get a response from a Case Manager and share to you the outcome.