Taxes

[Jennie12]

Hello fellow Airbnb hosts,

I am relatively new as an Airbnb host, and I can't seem to get a clear answer on how taxes work. Based on the discussions that I have read, it seems that any money I earn through Airbnb bookings is taxable income tax and has to be reported to the IRS. Most people suggest setting aside about 33%.

However, Airbnb also says this:

"US persons (including domestic corporations) may fill out a Form W-9. At the end of January, we will provide hosts who've earned over $20,000 and had 200+ reservations with a Form 1099-K showing their reportable earnings from the previous year."

Does this mean that I only pay taxes on the money I earn if I earn $20,000+ and have 200+ reservations? Does anyone have experience with this?

Additionally, Airbnb mentions over and over again that I may be responsible for a local tax and that it is my responsibility to figure this out. For the life of me, I cannot find the answer on my town's website. Any advice?? I live in Watertown, MA.

And while I'm at it... I rent and have permission from my awesome landlord to rent out my spare bedroom. Does this affect me in any way that I might not be aware of?

Thanks so much for your thoughts and guidance!

Jennie

[Elizabeth8]

Jenny, the 1099 form  would state how much money was made.  There have been no taxes taken out for state or federal.  you may have to go to your town hall and see the town clerk to answer your other questions, as they vary from town to town.  good luck!

[Elizabeth8]

Jenny, the 1099 form  would state how much money was made.  There have been no taxes taken out for state or federal.  you may have to go to your town hall and see the town clerk to answer your other questions, as they vary from town to town.  you should have a percentage of your income put away to pay the state and federal taxes.  You need to report all of your income, hense you have to pay taxes on all of the money you earn.  Good luck, I hope you enjoy hosting as much as I do!

[Paul4]

Few people on this forum, me included, are qualified to give you accurate info about your particular tax situation. You should consult and probably engage the services of a local accountant or CPA about how to set up and run this 'business'. Revenue, expenses, local accommodations taxes and insurance are starting points for the conversation. Beyond that, search this and other forums about how to survive and excel at this endeavor. Best of luck!

[Blythe-and-Michael0]

Hello,

Do you know if the Schedule E (Form 1040) is also required?

[Caitlin26]

I think that it is.  I have been searching through the vague information given by Airbnb and found a useful document while asking about deductables.

go to http://assets.airbnb.com/eyguidance/us.pdf  it has a bunch of information including info on the Schedule E (Form 1040)