Airbnb 1099-K Tax Form: Filing Requirements and Steps

Have you been wondering what a 1099-K tax form is? There is a lot to know and understand about Airbnb host federal and state tax filing requirements, including valuable Airbnb tax deductions. But the good news is you don’t have to be a tax professional to figure out gross earnings, taxable income, and business expenses.

Calculating your 1099-K taxes for your Airbnb account might seem like the last thing on your mind as you handle check-ins, guest issues, and anything else you need to worry about. Your confidence in reporting your Airbnb 1099-K income will increase after reading this article.

So, keep reading to learn all about the Airbnb 1099-K tax form. We will dive into why it’s important to have it, how to receive your form, and how to report it when filing your annual federal and state income taxes.

Key Takeaways

• The amount Airbnb reports in their 1099-K and the net amount you actually receive are not the same. 
• To avoid paying additional taxes, you’ll need to calculate the total service fees and refunds from Airbnb and have them subtracted from the 1099-K that was reported. 
• Airbnb automatically sends you a 1099-K form if you earn over $20,000 from over 200 reservations in 2023. 
• Airbnb will send the form directly to the IRS and you. Keep it for your records. 
• Keep accurate records of your transaction history, gross revenues, and any taxes withheld, as the IRS expects you to have this information ready in case of an audit.

Table of Contents

Why Is Airbnb 1099-K Important?

How to Get a 1099-K Form from Airbnb

How to File Airbnb 1099-K

Frequently Asked Questions

Why Is Airbnb 1099-K Important?

Airbnb 1099-K form reports gross payments received during the year. The amounts reported in Box 1a represent gross reservation and resolution total payments received from guests.

The amounts are reported before the deduction of Airbnb fees/commissions. The totals do not adjust for reservation alterations and cancellations made after guest check-in.

In order to report business expenses you incurred during the year as an Airbnb host (fees, commissions), you need to use Schedule C (Form 1040) to offset your gross income amount.

Each year, Airbnb issues Form 1099-K to the Internal Revenue Service (IRS) and to hosts who meet certain criteria. 

For 2023, each host who earns $20,000 or more in gross revenue or surpasses 200 reservations by the end of the year will receive a copy of the 1099-K from Airbnb.

The IRS is planning on changing the 1099-K requirements for the tax year 2024:

Third-party payment networks (such as Airbnb) will be required to file Form 1099-K with the IRS and provide a copy to you when the gross payment amount is more than $5,000 for the tax year 2024. This will be a phase-in amount to the eventual implementation of the $600 threshold.

Airbnb is obligated to send you the form by January 31 of the following year.

If you’ve received a 1099-K from Airbnb, you’ll need to report the exact amount that’s indicated in Box 1a.

Since the amount reported in Box 1a does not include adjustments for fees, credits, or refunds, you will need to go through the process of writing off all your business expenses when filing your federal income tax return.

As a host, you are responsible for figuring out the fees that are accrued by Airbnb for each reservation made throughout the year. These fees are deducted from each payout before it reaches your bank account, but they are not included in the 1099-K that Airbnb reports.

You can use the Earnings Summary and Transaction History in your Airbnb account to reconcile your 1099-K form.   

This is a common practice among online payment processors who file their reports to the IRS using the 1099-K format. In these instances, the total income or gross income is reported rather than the amounts of any fees or net income.

The host pays Airbnb a fee of 3% (or, in some cases, it can even rise as high as 15%) for each reservation. These Airbnb service fees also referred to as host fees, are deducted from reservation earnings prior to each payout. They are not included in the data reported on the Airbnb 1099-K.

Instead of processing an actual refund from the host’s bank, Airbnb simply deducts the fee amount from the host’s subsequent payout. This often happens when hosts on the platform pay a guest back for a cancellation request, resolution adjustment, or a shortened stay. The Airbnb 1099-K is not reduced by these refunds, though.

As you can see, there is a lot to know and understand when it comes to the Airbnb 1099-K forms. Knowing what the forms’ general purpose is and what the amounts in each of the boxes mean can help you save some money. It’s important to learn about the fees and taxes that Airbnb takes so you can ensure it’s the proper amount.

How to Get a 1099-K Form from Airbnb

Depending on the total amount you earn, your taxpayer information, the number of transactions, and state laws, you might receive two separate forms from Airbnb. These are the 1099-NEC (Nonemployee Compensation) and 1099-K forms. For the 1099-NEC form, Airbnb will send it to you directly if you earn more than $600 in a year from a single client. 

For the year 2023, Airbnb will automatically send you a 1099-K if you meet two requirements. These are:

• If you earn over $20,000 over the course of a calendar year from sales or reservations 
• If you incur over 200 different reservations or transactions in the same calendar year 

However, the rules differ if you operate your short-term rental business out of Massachusetts or Vermont. You’ll get a Form 1099-K if you made more than $600 from reservations, even if you didn’t make $20,000 or more than 200 transactions. 

You’ll also get a tax form 1099-K if, in a given tax year, you processed 200 or more transactions on a third-party platform like PayPal and made more than $20,000 in revenue.

To find your 1099-K, you have to be in the Host interface. Click your picture and then choose Account. From there, choose the Taxes tile. Make sure that the Taxpayer Information is correct. Next to it, you will find your Tax Documents, where your form will be saved. At the end of January, you’ll typically get a notification that your form is prepared.

There are some situations when you might not receive the right tax form or might not receive it on time. If you don’t file because you lost your 1099 or didn’t get one, the IRS is very strict about it. Check your account information if you didn’t receive a form but are certain that you met the reporting requirements.

Your address might have been entered incorrectly, for example, which can cause the tax form to be delivered to the incorrect location. Tax forms are typically mailed or emailed by January 31. You can check your account for Airbnb tax information if you did not receive a 1099 form by January 31. 

Even though you can technically file without a 1099, your tax return may be flagged for review if the income you reported is different from the income reported on your 1099-K or 1099-NEC.

How to Report  Airbnb 1099-K

When you complete your tax return, you will include the amounts reported on Form 1099-k in Part I, the income section of the form. If you are using tax preparation software, it will ask you questions to help you fill out the form. In Part II of the form, Expenses, you can then report all the expenses related to your Airbnb, like the host fees or the shampoo and other items you provide.

If you need a little extra help managing all your expenses, FreshBooks provides an easy-to-use and intuitive solution. You can track and manage everything you need from one central location to make it easier when filing your tax return. This includes tracking your Airbnb income and expenses and even the ability to reconcile your 1099-K reported earnings. 

Remember that even if you don’t receive a 1099 form because you are under the reporting threshold, you still have to report your income on your tax return.

FAQs on Airbnb 1099 Tax Form

Does Airbnb send 1099-K Forms?

Yes, Airbnb must send you your 1099-K form. However, they only send it if you meet two requirements for the tax year 2023. These are if you earn over $20,000 from reservations in a calendar year and incur over 200 different reservations in the same calendar year. 

How do I avoid paying taxes on Airbnb?

If you use your Airbnb as a short-term rental and don’t rent it out for more than 14 days in a year, you will not owe any taxes. You will also not be able to deduct any of your expenses for the 14 days. 

How much can you earn on Airbnb before paying taxes?

For 2023, Airbnb will send you your 1099-K form if you make over $20,000 and have over 200 reservations in the same calendar year. Make sure you keep your receipts for all rental income.

What If I don’t give Airbnb my tax info?

If you don’t submit your taxpayer information to Airbnb, the company can withhold taxes on your behalf. The amount can be up to 30% of your gross earnings. Airbnb will send you an IRS Form 1099-K (or Form 1042-S for non-US citizens) at the end of the year that details any amounts that were withheld. In some circumstances, you might be able to request a refund from the IRS for the money that was withheld.

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