Airbnb, Social Security and Medicare (for US hosts)

Cari3
Level 10
Vancouver, WA

Airbnb, Social Security and Medicare (for US hosts)

Do any of you pay social security and medicare from your airbnb earnings?  If I am understanding this correctly, we provide things like a laundry and cleaning service, we maintain the grounds, we provide tourist information and sometimes transport guests and provide parking and sometimes baggage storage.  

 

According to The Senate Report accompanying the Social Security Amendments of 1950 (S. Rept. No. 1660, 81st Cong, 2 session (1950) US Code Cong. Serv. - 3453) which reflects the intent of Congress with respect to the meanings of "rentals from real estate" it states:  "...payments for the use of occupancy of rooms or other space where services are also rendered to the occupant, such as for the use or occupany of rooms or other quarters in hotels, boarding houses, or apartment houses furnishing hotel services, or in tourist camps or tourist homes, or for the use of occupancy of space in parking lots, warehouses, or storage garages do not constitute rentals from real estate......are included in determining your net earnings from self-employment'.   

2 Replies 2

@Cari3My accountant told me that SS is not paid on rental income. However, before you make a decision to not pay SS you need to think about if you will need that income to show when you retire and want to draw SS. In addition, if you have not paid into the system for a number of quarters then you become ineligible for SS disability.

HI Tim and Holly - yes this is exactly my dilemma.  I have 24 credits and need 40 to qualify for SS and Medicare.  I went down to the SS offices yesterday to discuss airbnb with them and showed them what I printed above but they say they don't know if airbnb would qualify - that it might still be deemed a rental.