1099 for 2023 - Check yours for Accuracy

[Patti120]

@.linkstomembers.1099 for 2022 are wrong again. for me.  Way off this time. Worse than last year.

[Emilie]

Hi @Patti120, 

Thanks for letting us know!

Did you get a chance to speak to Support about this? Or do you have any tips on how to proceed from there, based on your experience, for anyone else who might run into a similar problem?

Emilie

[Patti120]

Hi Emilie, I reached out to Host Support on the email with the tax document pdf and the Earnings Summary. Someone did reach out to me early this morning and closed the case on the Airbnb Host Website once I had verified my email. All correspondence is through email at this time per the Host support communication. I am in limbo waiting at this time.  

In the meantime, I will be sending Airbnb Accounting in San Francisco, CA third floor and the CFO Dave Stephenson in Seattle, Washington copies of my bank statements showing the actual amount received, copies of the 1099-MISC tax document that is incorrect and copies of the Earnings Summary which is also incorrect. Hopefully there will be more dialog than  last year and more quickly. I will also ask for the Airbnb "Justification" for how Accounting came up with their totals. The Justification helped my accountant make adjustments to my return since Airbnb last year, was showing income I did not receive of approximately $7000. Without the Justification I would have had to pay over $3000 of additional tax. My accountant was successful in making the adjustments so I did not have any additional tax due to Airbnb's errors. 

I have messaged Dave Stephenson through Linked in to let him know there is a problem once again ( I did this last year and he did respond albeit slow). He is a difficult person to locate but he is at the Seattle office for sure, not the San Francisco office. He is also the boss, so I am sure he is not a happy person with this news. 

The more information the boss has and the accounting department has, more changes in the future can be made. Hopefully accounting accuracy is not just wishful thinking in the future at Airbnb. 

Best,

Patti ***

Ventura, California USA 

***

**[Personal details removed - Community Center Guidelines]

[Patti120]

Hi Emilie, 

My accountant determined after researching the Airbnb Host Support's position regarding the incorrect 1099 I received and determined that 2022 is an "interim year for the IRS. In 2023 Airbnb will be issuing 1099 for Hosts earning more than $600 regardless of the number of bookings.

The following is the response received from Host Support regarding the 1099:

Airbnb Community Support

**, Thu, 09 Feb 2023 10:58:27 GMT

Hi Patti,

this is **, I hope you are fine!

**
Airbnb is required to comply with Section 6050-W of the IRS code, which means even for the year 2022, only hosts who earn more than $20,000 through the tax year ending 31 December 2022, and host more than 200 reservations in a calendar year will receive a Form 1099-K.

In late 2021, Airbnb notified Hosts that the filing requirement was changing to $600 USD or more from 1 January 2022. This was based on the 2021 American Rescue Plan Act.
In late December 2022, the IRS announced a delay in reporting thresholds for third-party settlement organizations, such as Airbnb, set to take effect for the upcoming tax filing season.
The result of the delay means that Airbnb will not be required to file 1099-K’s under the $600 threshold which was enacted as part of the American Rescue Plan of 2021. Accordingly, for calendar year 2022, Airbnb will only issue 1099-K’s under the greater than $20,000 and 200 reservation threshold.
For further information, you may find this link useful:
https://www.irs.gov

In your case, you did not meet the earning threshold, nor you did not meet the minimum number of reservations hosted. As a result, we did not issue a 1099-K form, however you received the 1099- MISC form.

We would like to clarify with you about this:

> A form 1099-MISC is a generic document Airbnb issues to US citizen/tax resident Hosts who receive other reportable income from Airbnb.
Generally, this form will report promotional payments, bonuses, awards, incentives and Airbnb-settled resolution payments which are considered reportable payments and are not included on Form 1099-K and/or Form 1099-NEC.

> Luxury Retreats Hosts who are US citizens/tax residents and have earned $600 or more in the calendar year will receive a Form 1099-MISC. Amounts reported on the Form 1099-MISC are reported at gross (before our commission/fees are deducted).

For further information, you may find this article from our Help Center:
https://www.airbnb.ie/help/article/414

To assist your tax reporting, you can access your earnings summary detail through your Transaction history:

1. Click 'Menu' at the top of the hosting home page
2. Select Transaction history > Gross earnings> download

We do recommend reaching out to a local tax professional in your area for additional assistance with your specific situation. For further information, you may find this link useful:

airbnb.com/help/topic/1450

If you have multiple taxpayers, don’t forget to double check that your default taxpayer and taxpayer assignments are set correctly. If you’d like, we have more information about that in our Help Center:
airbnb.com/help/article/417

Best regards,
**

**

**[Private conversation removed in line with the Community Center Guidelines]

[Patti120]

Hi Emilie,

I will be sending the Airbnb earning summary with my bank statements showing the $1891. shortfall in the earnings I received verses what Airbnb is claiming on my earnings statement. It is very difficult to get anyone at Host Support to address the poor accounting practices experienced and have interactions with them to solve the individual problems coming from the Accounting Department. 

This year Airbnb claimed I received $7000 more than I actually received. This year it's $1891. Next year if the IRS requires 1099 on income more than $600 it will be another year of accounting issues the Hosts will be facing. 

This should not be happening. 

Patti

[Bhumika]

Hi @Patti120 ,

I just wanted to let you know that I sent your concerns to the team if they can help redirect it to the correct department. 

I hope you hear from someone soon. 

Can’t find what you’re searching for? start a conversation

[Patti120]

Hi Bumika, Host support is unwilling or unable to submit the issues I am having between Airbnb reported earnings and the actual funds I received. The Airbnb earnings is $1891 is over stated. Their payout to me is $1891 short of what the company is claiming. It is difficult at best to get a knowledgeable person in the accounting department to correct the errors found every year since I joined Airbnb in 2019. Last year the overstatement was worse, but it still isn't correct and Host Support is faster to contact me and still unable to be a good liaison between the Host and the accounting department.

Best,

Patti

[Patti120]

Hi Bhumika,

I will keep you updated. Thank you for helping. Airbnb has to get their accounting right for all hosts. It's so important as you know. 

Kind Regards,

Patti

[Lorna170 · Accepted solution]

@Patti120   A 1099 will report EVERY DIME of income attributable to a property.  It is NOT just the money that you received in your bank deposits.

1.  Your bank deposits of rental earnings.

2.  The 3% fee charged by AirBnB for processing your payments.

3.  The fee charged by AirBnB to the guest for renting your property.

4.  Fees charged and kept by AirBnB for cancellations and refunds.

If you speak to your accountant, this may make more sense to you.

[Patti120]

Hi Lorna, You are absolutely right and the numbers don't add up and didn't last year either. When you look at the  accounting records Airbnb attached, to your account,  look at the Airbnb Earnings Report and Check the math on their records against each other, then compare it to your records, you will see that the math doesn't add up in several places. Next year they will need to report all earnings over $600 on the 1099. 2022 is a transition year so was 2021 according to the IRS. 2023, at this time according to our CPA, going to require all earnings be on the 1099 not just Other Income as reported on our 2022 1099 from Airbnb. Airbnb's Accounting Department made changes from 2021 to 2022 but their system is still broken. I escalated all the way to the CFO over the 2021 1099 I received. The Accounting Department sent me their Justification so my accountant could make the adjustment on my tax return. Without the Justification I would have had to pay income tax on $7000 of Airbnb reported income I never got. In 2022 Airbnb included the Justification so we did not have to beg for it. Mine does not add up. Thankfully, the conversation is now escalated and I have once again provided Airbnb with the analysis showing where their math is incorrect and copies of my bank statements for their own analysis of the situation. This is a company with a very broken Accounting Department in my experience. They need to get their act together. 

Glad to hear you are not having a problem. Hopefully you looked. 

Cheers,

Patti

[Lorna170]

@Patti120  The reports that AirBnB provides are very incomplete.  I do not rely on them to correctly reflect the income earned by my property, nor do I ever anticipate the reports showing the correct amount that would be reported on the 1099. 

There is a definite disconnect between what the programmers at AirBnB have been asked to include in the earnings reports and what will be reported as our gross income on a 1099.  AirBnB needs to improve the reports.