Taxes and Form 1042S

[Patrice94]

Hi. I’m a French national, owner of a house in the USA and hosting through Airbnb since september 2018. I need help to understand how much I will have to pay to IRS on my Airbnb revenues. Browsing the IRS site on the Form 1042-S, its a real nightmare to understand how it works.

Additional question : I have filled up a W8BEN with my permanent residence address back in France. I have no idea of the nature and contents of any fiscal treaty between France and USA. Can I expect to receive this 1042 Form in France ? And should I look for a US CPA to help me fill it up ?

thanks in advance to whoever can help me

[Ann72]

@Patrice94, I feel your pain!  The 1042 is a nightmare.  In my other business, I'm supposed to file it when I pay foreign clients.  Since that doesn't happen very often and their income is minimal, I just pretend to forget all about it.  🙂

However, since all your US income comes from that one source, you're probably going to have to get it straightened out.  I would definitely get a US CPA on board.

Where is the house?  Is it in a state where Airbnb collects occupancy taxes on your behalf?

The US and France have a treaty for relief from double taxation.  I only know how it goes from your country to ours:  When my clients earn money in France, we have to file a form 6166 with the IRS.  This proves to the French tax authority that the US client is paying taxes in the US on income earned in France.  This then reduces the amount the French can tax.  I'm guessing there's a similar form you can file with the French tax authority that will tell the IRS that you are paying French tax on income earned in the US.

Do you have a French CPA who understands all of this?

[Helen3]

Sounds like you might benefit from using an accountant with an understanding of US/French tax affairs @Patrice94