Income from Airbnb and Unemployment Benefits

[Bob22]

Never thought I'd be discussing this topic, but after 29 years of working with the same firm I was laid off. Now, I am wondering, does my Airbnb income constitute employment income, or just rental income, and does need to be reported to the state unemployment center as employment income? Thought I'd seek out free advice before emailing my tax consultant.

Thanks all!

[Helen3]

That is certainly not true in other countries such as the UK.

In the UK it is certainly considered income and needs to be declared for tax purposes.

Suprised that in Florida they don't see business income (which of course Airbnb is and income for tax purposes).

[Letti0]

@Helen3  I have yet to hear of any US host that it's not consider rental income and therefore does not count when applying for unemployment benefits, but I cannot speak for other countries as each one will be different as you say. 

[Alex-and-Vaughan0]

> In the UK it is certainly considered income and needs to be declared for tax purposes.

Same here in Australia. In fact the Australian Tax Office is exchanging information with Airbnb to ensure that the income is declared.

[Sarah977]

@Alex-and-Vaughan0  No one is saying that it's not income that has to be declared- the question was whether it's considered to be rental income or employment income, which would make someone ineligible to receive unemployment benefits.

[Alex-and-Vaughan0]

There is no distinction in Australia. All income has to be declared for benefits. 

[Sarah1844]

Right. I'm in same position during COvid. and I'm wondering if the difference between "passive" and active income is what matters? 

I actively participate in hosting rooms in our home. So wondering if anyone knows how that would work...if it's income. @Bob22 @Sarah977 @Cara49 @Lisa1474 @Alex-and-Vaughan0 

[Trish497]

I am on Centrelink as a small business in South Australia, so wondered if it would be considered to be rental income or business income. I want to declare it as business income as a part of my small business with Centrelink to help out with my yearly requirements. 

[Sophia]

Hi @Trish497, as this is a pretty old thread I'd recommend you create a new conversation in the Community Center here: https://community.withairbnb.com/t5/forums/postpage/choose-node/true

Fellow Hosts can advise you better based on their own experiences, they have a vast amount of knowledge and are friendly! 😊

[Marc773]

it counts as income for tax purposes it count's as passive non working income for unemployment benefits and doesn't affect them. As long as you are not actively working at it like a job. You also don't pay unemployment taxes on your airbnb income so you can't collect unemployment from airbnb income should you lose it.

[Lisa1474]

I am in the same boat....  just went on unemployment.  I cant get a straight answer from anyone in NY state.

[Cara49]

I eventually got an answer that Airbnb earnings are income (you report on your taxes) but are not wages, so they don’t interfere with unemployment. 

[Susan525]

Great info here and fully answers the question I think:

https://royallegalsolutions.com/is-my-airbnb-subject-to-the-self-employment-tax