Airbnb submitting taxes

[Amy300]

How do I stop airbnb from submitting taxes on my behalf?  This is not a benefit that I want to participate in because we do other business with the state and it is throwing up red flags. Please provide instructions on how to opt-out of submitting taxes. 

[Diana--Maria-and-David0]

Hi Linda!   I’m Diana.   I’m citizen of USA and Mexico City! And I read if you are American citizen it doesn’t matter where you live you need to fill out taxes.   Now I’m living in Mexico City for a year now, before in nyc.    I have my airbnb in Mexico City, but all the money goes to my USA bank account in dollars of course.     This is my only income, and I’m not making more than 15k.     I read something bout more than 20k you have to fill out taxes.      Can you help me with some advice please?     Thank you.  Diana

[Linda108]

@Diana--Maria-and-David0  If you make less than $20,000 through Air BNB, you will not receive a tax form 1099.  You will self-report your income to the IRS.  Your own tax accountant will be able to tell you if you have to submit a tax form.  There is a good article in the Help Center prepared by Ernst and Young Accountants that provides guidelines for tax prep.

[Darlene-and-Thomas0]

We are new to AIRBNB from North Carolina- How do we know that airbnb is collecting the right amount of taxes to be paid? We dont want to end up at the end of the year with a huge tax bill? Can anyone advise? Thank you 

Darlene 

[Carmen561]

You can get your transactional history and multiply the gross amount by the amount your state charges, the amount should match what has been deducted. I did mine that way and they are correct with the amount they claim they are deducting.

[Letti0]

If you go to the Progess tab then Earnings and scroll down to Transaction History and click on that. On the right hand side you will see a Gross Earnings link. It will show you what AirBnB has paid. For some they pay just the State for others they pay City and/or County. It depends on the deal they set up with your area. 

[Natalie342]

Hello! This is my first time using ABB. I am totally confused on the tax policy. I am only renting my place for 1 month. Does the IRS send me a collection by mail? Do I leave it up to ABB? How do I avoid penalties? Please help! 

[David126]

As far as income taxes are concerned that would be something for your annual return.

Sales/lodging taxes depends where you are and what your locality charges, what AirBnB collects or does not collect.

[Linda108]

Air BNB is not an employer so income tax is not collected.  If you have a business, i.e., are a host with a listing that you earn money in the US, then like any business, you keep records of income and declare on your income tax.

[Amy666]

I find this incredibly frustrating as well. I have my site listed on VRBO and pay quarterly sales tax for that myself but have no way of knowing if AirBNB is paying my sales tax collected from their site as there is no record of it anywhere and I really dont want to be held accountable when they mess up.  I would much prefer to pay it all myself. If the vast majority of my bookings did not come through Airbnb I would drop them in a heartbeat as this feels really dodgy to me.   

We are just trying to pay for the upkeep of our family farm which we inherited as part of my Dad's trust.  We make absolutely zero profit on the place so I do not need a huge tax bill because Airbnb is being negligent. 

[Letti0]

@Amy666  Go to Progress on your dashboard. Scroll down the page to Transaction History click on that and in the right hand side of the screen you will see a green Gross Earnings. That is where you will see all the taxes AirBnB has paid on your listing. 

[Amy666]

@Letti0 

It says what they collected but I have no proof they remitted it to the State and according to the representative at my Dept of Revenue, they haven’t paid anything all year.

[Karen1505]

GOOD AFTERNOON, (DEDHAM HOUSE) DEDHAM,MA I MS KAREN FASHAW JUST STARTED AIRBNB IN JULY 2018 I JUST RECEIVE TAX STATEMENT FORM AIRBNB I WENT TO A FINANCIAL EMPOWER WORK SHOP THEY STATED  AIRBNB TAX STATEMENT WAS OUT OF THEIR SCOPE  MEANING THEY NEVER DONE AIRBB TAXES BEFORE. AIRBB SUGGESTED I GO TO A CPA PROFESSIONAL TAX PERSON  AIRBNB STATED IN THE TAX FORM IF YOU MAKE OVER $20,000 YOU DO NOT HAVE TO  REPORT YOUR TAXABLE INCOME  I AM A BIT CONFUSE BECAUSE IRS STATES YOU MUST REPORT ANY INCOME  HELP ME OUT HERE BY REPORTING MY GROSS EARNINGS FROM AIRBNB LOWERS MY REFUND DRASTICALLY

MS KAREN FASHAW

(DEDHAM HOUSE)

DEDHAM, MASSACHUSETTS

[Raf3]

Hi Karen, yes you have to report your AirBnb income. The statement you received is not your taxable income of what you must pay state and local income tax on but merely a representation of the funds flows on the platform. There are many deductions (i.e. opportunities to reduce income tax) available to you. I'm a CPA and have written an entire blog post on this here.http://www.gatortaxprep.com/what-about-airbnb-taxes/

[Nancy931]

I live in RI and hosted My first guest last week, i saw What was charged and what I was paid. Does Airbnb submit my taxes they collected? If so why did I apply than for a license to rent and do they or I submit RI taxes.  I’m confused... how do they know what my tax ID number is, there is no spot to give it to them that so found.  Can someone talk me through this? I’m new st this and very confused 

[Mary419]

Searching for Tax discussions and noticed that this was marked as resolved yet the message with the check mark is related to income tax? What a cluster. I did not want Airbnb collecting and remitting for me because I collect and remit for my business on sales through other platforms. Therefore, for bookkeeping and reporting them doing hotel and sales tax for mine would not save me any time and would probably cause me to get audited (as I would have to record airbnb sales differently, not remitting tax myself if they are doing it). Luckily, they were NOT offering to collect and remit in my area anyway. Instead they are slowly adding the option for the owner to add a tax line, to collect and remit it. I hoped this would be the same as other platforms but it is not. The tax is automatically added to the cleaning fee without any option to not tax that, and the tax is added to the guest total before service fees are deducted. I was willing to do the calculus to make that work. But now this tax option is malfunctioning like they are taking the tax back from me during an alteration, sometimes not taxing a new booking despite the listing having tax.... is anyone else dealing with this? Why can't they just do it the same way as the tried and true old fashioned vacation rental booking sites????? I just want to back 13% out of the total they send me and record that as state and city tax liability. It would be so simple. My motivation for the separate line item is so the guest sees the value. If they do not see it broken down they do not understan how low their rate really was.