Does Airbnb send the IRS any info when less then $20,000 is earned?

[Lubov0]

Its Tax time and I do my own taxes (turbo tax), does anyone know if the IRS gets info from Airbnb regarding host income if the income was less than 6000. I saw that airbnb issues a form to hosts if they earned $20,000 and/or had 200 bookings...

Any input would be greatly appreciated.

[Amy-And-Joe0]

A belated "thank you" for this information and resources!

Joe

[Monique48]

I keep track of everything: all the paint i used to decorate, all the sheets, shampoo, soap. I even have figured out how much extra in electricity and gas and a portion of the internet. 

[Taylor10]

Hi @Clare0,

I just received a CP2000 from the IRS saying I owe about $1,500 on under $5,000 worth of earnings (my Airbnb payouts). I didn't report my earnings because I guess I mistakenly believed I didn't have to because I earned under $20,000. Any advice? Does that number seem accurate? Seems steep!

Any info would be appreciated.

Taylor

[Clare0]

Hi @Taylor10 since I am not an IRS employee, I can't comment on the CP2000 notice or whether or not the tax due is excessive or not. 

That would depend on your other income  and tax bracket. 

What I would recommend is that you get a tax expert to help you.  When I report my Airbnb income, I also include tax deductible expenses such as repairs, supplies, Airbnb service fees and other miscellaneous expenses.  You could likely do the same thereby reducing your tax liability.  

Since Airbnb doesn't report income unless you meet the threshold requirements for a 1099K, I'm wondering if the IRS picked up some other income that was reported to them through a 1099.  Is that possible?

I wish you the best of luck and hope that in the end you won't owe anything!! Clare

[Taylor10]

@Clare0 - Hi!

Thanks for the advice. But it specifically says on the tax document I received that "AIRBNB" is the source of my income that I didn't report - which I thought was odd because, as you said, as far as I know Airbnb doesn't report earnings to the IRS if you are under the 20,000 mark. But I'm going to see professional tax help...

Thanks!

[Clare0]

@Taylor10 Hmm.  Could it be that it was income from 2014 when Airbnb sent 1099's to everybody?

[Danielle211]

I owe almost $8000 on $12,000 worth of airbnb definitely not worth the aggravation I'm deleted my account 

[Jason78]

exactly. if you earn $1.00 you need to report it to the IRS and the State.  People.. it's real simple.  Airbnb pays by electronic transfer, so EVERY tax bureau can see what you earned in your bank statements.  death and taxes... death and taxes....

[Brock6]

Exemptions: If you use a dwelling unit as a home and you rent it less than 15 days during the year, its primary function is not considered to be rental. You are not required to report the rental income and rental expenses from this activity on Schedule C or E (Form 1040). The expenses, including qualified mortgage interest, property taxes, and any qualified casualty loss will be reported as normally allowed on Schedule A (Form 1040). See the Instructions for Schedule A (Form 1040) for more information on deducting these expenses.

[Owais1]

Hi Jason,

Per Brocks note below and on the IRS site, it says if you rent your home under 15 days income or expenses d not need to be reported.

https://www.irs.gov/publications/p527/ch05.html#en_US_2016_publink1000219202

Best,

[Sasha47]

Thanks Clare, 

In this case, under which section shuld I report muy earnings from Airbnb? I made about $2K last year and havent' receievd a form.

Should I submit this income under Rental Properties or Other Common Incom (which usually includes 1099 MISC and 1099K forms).

Thank you!

[Clare0]

@Sasha47 I am not a tax expert but I can tell you that I report my Airbnb income on Schedule C since I also itemize and deduct my rental expenses.  This link might be helpful in deciding how to report your Airbnb income: 

https://assets.airbnb.com/eyguidance/us.pdf

If you are not claiminng any rental expense as deductions, likely it will be ok to report under Other Income.  

[Kim896]

Do I report my rental Airbnb  on a scedual E  for rental income or do I report it as a small business ?

[Alan97]

 Hi everyone,

1. - I am still confused about filing the tax. Referring to Airbnb website (link below) we have to pay tax if we have more than 200 transactions AND make over $20,000. So if I did not have 200 reservation, would I still file the tax?
2. -Also, I haven't got the business license yet? Is that required in Loss Angeles County?
3. -What if I haven't filled the taxpayer information on Airbnb for 2016? On the taxpayer information says: Any edits you will not affect your 2016 tax forms. They will be applied to 2017 and beyond. 

Thank you for the help

The US Internal Revenue Service (IRS) requires US companies that process payments, including Airbnb, to report gross earnings for all US users who earn over $20,000 and have 200+ transactions in the calendar year.

(https://www.airbnb.com/help/article/414/should-i-expect-to-receive-a-tax-form-from-airbnb )

[Jack91]

"- I am still confused about filing the tax. Referring to Airbnb website (link below) we have to pay tax if we have more than 200 transactions AND make over $20,000. So if I did not have 200 reservation, would I still file the tax?"

Yes.  Definitely yes.  There is a difference between a company (AirBnb) being required to submit a 1099 and an individual (you) being required to pay income tax.  In brief, if you make income, with rare exception, you have to pay tax on it.  Not receiving a 1099 is not the same as being given a "pass" on the taxes.  It simply means that AirBnB isn't required to submit paperwork on a zillion (relatively) little transactions.  If you don't claim the income you are committing tax fraud.  You have to decide if you wish to take the risk of audit.

On expenses to report...calculate the square footage of your rental space as a percentage of your total property.  In my case our carriage house is about 12%.  If its primary use is rental income then everything that is used to support your rental space is deductible.  So 12% of my property tax, utilities, property insurance, plus all direct expenses are deductible.  It's much like having an office in your home.  I have been told it's an audit flag but if you do your taxes honestly it shouldn't be an issue.

Hope this helps.