Airbnb submitting taxes

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Amy300
Level 1
Austin, TX

Airbnb submitting taxes

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. 

1 Best Answer
Jann3
Level 10
Santa Rosa, CA

@Amy300, did you get a request from ABB to submit your tax info to them? If you got the request, and havent submitted it they will withhold 28% of your income for submission to IRS. Generally this kicks in with having earned $20k/yr AND 200+ stays.

 

https://www.airbnb.com/help/article/510/why-are-taxes-being-withheld-from-my-payouts

 

If this is not the case and you are talking about state or local taxes, ABB has agreements with many locales for occupancy taxes and you cannot stop them.

 

https://www.airbnb.com/help/article/654/what-is-occupancy-tax--do-i-need-to-collect-or-pay-it

 

I have yet to see a FAQ on how to find info in your area. For instance, I am in Santa Rosa, CA county of Sonoma. ABB collects 12% for Sonoma county except for residents w/in Santa Rosa. Santa Rosa has it's own 12% occupancy tax which ABB's FAQ suggests you should add to each reservation OR collect in person (odd, since I was told never to accept ANY payments in person for ANY special requests). I am looking into this more before my first booking.

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65 Replies 65

I have been told the same thing about the $20,000. Please reply as to what you find out here.  

Karen,

Did you ever get an answer about this?  I am now filing my state taxes, and they need me to include the amount AirBnB has collected and remitted, and that seems to be completely in the dark.  In my state, they collected for the latter half of the year, but I am responsible for taxes for the first half.

Hi Ardis and Teresa, apparently the lump sum payment to the state is sufficient in Texas - but we also have a local "hotel tax" of 7% where we are so we have to pay that monthly ourselves. It is important to educate ourselves on this as we don't need to be paying for penalties for "non-payment" of any taxes owed. Check with your county and city to see if you need to pay separate hotel taxes there.

So I have been going around and around with Airbnb for the last three days on this. It all started when I contacted the Dept of Revenue about my sales taxes and they informed me that the only taxes that had been paid were the ones I filed for my other site which doesn’t collect taxes on my behalf in my area (VRBO).

 

So Airbnb was supposed start collecting taxes in Feb of 2018 (didn’t actually start until the end of March) and then pay quarterly. They never paid any of the taxes they supposedly collected to the state which left me delinquent with penalties.  I’m an honest person and have always done my own taxes but Airbnb has cost me over $700 in unpaid sales (occupancy tax) and penalties.  The Dept of revenue rep suggested I pay and hope that they finally pay and I get credit on my account.  I’m an beyond livid. When I finally received a response from Deborah in the tax Dept of Airbnb this is what she said to my insistence on being reimbursed and given a receipt on taxes paid on my behalf...

 

Hi Amy,

I understand that you want a document from us stating how much tax was paid on your behalf. Unfortunately, Airbnb does not offer any type of letterhead communication regarding monetary earnings or financial reporting outside of the U.S. Year-End statements.

We collect occupancy taxes automatically, and at the same rate for every single host in your area. No host has the option to opt-out, and therefore your local tax office can be certain that every single one of your reservations has had occupancy tax collected and remitted for every booking accepted on or after February 1, 2018.

You can always refer to the Gross Earnings section of your Transaction History for a reservation by reservation breakdown of amounts that have been remitted on your behalf. Taxes that have been remitted on your behalf cannot be returned to you.”

 

 

So do they just pay them all at the end of the year because we are supposed to pay quarterly and I get penalized if I don’t.

 

Beyond frustrated and confused!

 

amy

 

 

 

 

 

Hi Karen!   I’m all confused.     If you make less than 20k you don’t need to fill out taxes?   Thanks

It has nothing to do with what you make as a host, if your state collects hotel occupancy tax and Airbnb doesn't collect on your behalf in that state as a host, you are required to pay.  In my state, TX Airbnb collects for us BUT in my city the CITY I operate in also collects a separate hotel tax - what WE have to pay in addition to the taxes that Airbnb collects. We haven't passed the additional 7% our city collects on to our guests at this time, it's just frustrating to call Airbnb help lines and the reps have no idea what they're talking about when it comes to this.  This is totally separate than income tax reporting annually. We have to do this monthly here in Texas for the local hotel tax.  

 

@Karen700 @Amy300

 

ABB does not attribute any tax to separate owners. Essentially all the state HOT ceases to exist for your abb reservations. Continue to send in your state forms with your reservations from other sources or listing no tax due if you only list with abb. (If you only list w abb ever ever then you could have the comptroller cancel your state HOT account) You need to continue self-paying all your city/county HOT since abb doesn’t collect any of those. 

Even if you don’t love this system keep in mind that abb & the state agreed to this plan so apparently it’s better than trusting hosts to self-pay

In Colorado they collect County, basically anything collected by the State, that is all mine but I believe there are some locations where you still have to collect some of it.

David

GOOD AFTERNOON, KAREN FROM DALLAS, TX I  MS KAREN HAVE THE SAME QUESTION AND CONCERN STATEMENT ABOUT MAKING OVER $20,000 WILL HAVE TO REPORT THE GROSS EARNINGS WHICH BRINGS DOWN MY TAX REFUND, NOW DEDHAM, MASSACHUSETTS DO NOT HAVE OR TAKES OUT TAXES 

WHICH IS NOT GOOD BECAUSE THE MORE TAXES TAKING OUT THE BIGGER REFUND I RECEIVED AIRBNB NEEDS TO  HELP YOU AND I TO CLARIFY THIS $20,K MIX UP

 

 

David126
Level 10
Como, CO

@Karen700 Well I have State and County taxes collected and I understand they are remotted as a lump sum per the agreement AirBnB has with the State So assuming the situation is similar where you are then that should do it, I know in my State that some Hosts need to collect taxes for Gov entities that have no agreement with AirBnb, fortunately not me.

 

I doubt having a LLC is relevant.

David
Mary834
Level 2
Port St. Lucie, FL

I have the same questions regarding the taxes collected. I have tried to get answers from Airbnb but my message was handed off and no one has returned a call or message. Very frustrating.

@Mary834 What are your questions?  There are several issues addressed and answered in this and other discussion threads.  Perhaps we can assist.

Airbnb is collecting what appears to be state sales tax for Florida. I need to know their process and paper trail that it is being submitted on my behalf. I don't remember supplying a tax ID number. How will I know it has been received.

When Air BNB collects and remits occupancy tax, @Mary834, you are notified of the amount of tax charged to the guest.  However, as this is not income to you, you do not declare for income tax purposes.  Air BNB remits the tax in a lump sum to the taxing authority so there is no individual host information given to that agency.  My city contracted with Air BNB to collect and remit the occupancy tax and then found out about the lack of individual host identification for the city.  Because of that, the city cancelled the contract.  

 

It appears that the Air BNB CS reps are not well informed about this process. If you need confirmation that the state is accepting the lump sum payment, you should contact the state for that information.  While my city was contracted, hosts still had to submit monthly reports to advise income from the rental but indicate Air BNB paid it.   Hope this is helpful for what you need.  Linda

They are doing the same to me, so do we report zero on the tax forms, because I'm not trying to pay it twice!!