If you earn more than $600 in rental income through Airbnb, Airbnb will issue a Form 1099-K. You must report this income on your tax return. The first step is to fill out the right tax form on Airbnb’s website. US citizens will fill out a W-9. Non-US citizens will fill out a W-8ECI or W-8BEN. To claim deductions, fill out a Schedule C or Schedule C-EZ. IRS publications explain deductions.
You must pay taxes on Airbnb rental income. The 14-day rule allows hosts to avoid taxes if renting under 14 days. The IRS can find rental income from audits, paperwork, and records. You can write off cleaning, repairs, maintenance, improvements, utilities, insurance, and fees.
Airbnb Income Taxes FAQs
- How much do you have to make on Airbnb to file taxes?
- Do I have to pay tax on Airbnb income?
- How do I see the total with taxes on Airbnb?
- How much do you tip a cleaning lady on Airbnb?
- How much tax do you pay as a Host on Airbnb?
- Do Airbnb hosts have to pay tax?
- How much tax do I have to pay on my Airbnb?
- How do you need to pay for Airbnb taxes?
- Do I have to report my Airbnb earnings?
Using your home as a residence and renting it out for fewer than 15 days has a special rule where you do not report rental income or deduct any expenses. If your properties do not apply to this rule, report as usual.
Managing Expenses and Tax Forms
- How do I calculate my expenses?
- As an independent contractor for Airbnb, you have to file a 1099 tax form for your gross earnings to the IRS.
- If your Airbnb rental business makes more than $20,000 in sales and has 200 or more reservations during a calendar year, then Airbnb is required to send you a Form 1099-K.
- The Schedule E is used to report rental real estate income, among a few other types of income. Most Airbnb hosts would likely report their income on a Schedule E.
You really need to keep track of all your expenses for your Airbnb unit. A powerful tool to help you record your Airbnb expenses is Bonsai. Anything you spend to earn more income can be wholly or partially used as a deduction.
Automated Tax Collection by Airbnb
Airbnb is now automatically collecting taxes for specific cities. The tax authorities will apply a fixed abatement of 50% on your earnings, considering various charges, and submit the remaining 50% to the progressive scale of income tax as well as social security contributions. Proper financial planning can save you money in tax deductions.