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All, I got an email from Airbnb and wondered about its legitimacy. Sure enough, it’s legit. This only affects U.S. hosts.
The email wanted me to click to add my social security number and of course I had to go look first by logging into the website. Go look in the Account > Payouts and you’ll see where they now have a form to add the info. UGH!!
Here’s the full email text.
Avoid tax withholding in 2022
We’re reaching out because of new federal legislation changes to tax reporting requirements that could impact your future payouts.
To avoid up to 30% of 2022 payouts being withheld and remitted to the IRS, we recommend you provide US taxpayer information for your Host account no later than Dec 1, 2021.
It should only take a few minutes to add it now.
What to do
Add taxpayer information for any individuals or entities who receive money from the account receiving this email. Your taxpayer information is usually your social security number or in some cases, your employer identification number (EIN). If there are two or more taxpayers, also follow these steps:
Why it’s required
To comply with the American Rescue Plan Act of 2021, companies are required to collect taxpayer information in order to fulfill Form 1099 reporting requirements for the 2022 tax year. This is a federal legislation change affecting many US companies starting January 1, 2022. Taxpayer information from Form W-9 or W-8 is used to prepare 1099 or 1042-S for the 2022 tax year.
What to know
Your taxpayer info is required to prepare your tax form(s), and if you don’t provide it, here’s what could happen:
I just looked, I see a place to add a taxpayer but I did not get that email and do not see any of the stuff about withholding 30% or anything you copied and pasted above.
RR
Please re-read my post. You stated the same thing I did. @aelilya I went to the website because that’s what I always do…never click on emails I’m not expecting.
Gotcha. My bad. I’ll just delete that since it repetitious. Thanks!
Kind of interesting. After I deleted my redundant post, I went to my email and there was a survey from AirBnB about this. It presented me with a couple of differently worded versions of the email and asked me questions basically asking if I believed it was true, would I stop hosting with AirBnB as a result, etc. I did suggest they should consider how they were sending it out and how they were directing people to add the information because of it’s sensitivity; that hosts may find it suspicious.
:
Wow, that is interesting! What’s your perspective on supplying your personal info into the website?
I need to do some more research first. I don’t know if there’s been some policy change within AirBnB or with the US Feds. I thought the question about whether it would make me stop hosting with AirBnB to be odd if they have no control over the situation.
Frankly, I thought I’d already provided my tax payer info to them. I mean, how else could they have been reporting my taxes all this time?
This all feels a little odd; maybe not fraudulent, but I feel I’m missing information.
Yeah I have the same feeling. I know the legislation under discussion is far-reaching into every American’s tiny financial details IMO. But I never got a tax form from Airbnb, we did all our own tax reporting.
What changed this year for us, though, is Airbnb is paying my state and local taxes directly. So this feels more of a money grab to ease their reporting — if they are confident whose tax money they have they won’t hold back more. I really don’t know and hope other hosts can chime in.
Aelilya, I don’t understand how Airbnb pays the taxes they are withholding, could you fill me in? I am supposed to pay taxes quarterly on my Airbnb business but how do I know what to pay if they are paying them? Thanks
Vrbo deducts from my payout and I get a form at the end of March to give to my accountant.
Vrbo gives the funds to the IRS and it is deducted from what I have to pay at year end.
I see exactly what you see. However, I know they already have my tax payer information because I already get a 1099 every year. I gave them my social when I signed up.
I think this is for hosts who have never given their social and must not get 1099s every year. It may be because they were under the threshold before but the threshold is changing to $600 so probably no one will be under the threshold anymore.
The IRS requires a 1099-k for third-party payment organizations (TPSOs), however that was only for a threshold amount of $20,000 or more (or 200+ transactions). However, in 2022, that threshold amount changes to $600. Airbnb does not have a choice, this is the Feds.
And if they don’t have your TIN (usually your SS#) or if they have an erroneous TIN, they are required to impose backup witholding.
Did you not provide a social security number to Airbnb when you first signed up to host? Have you not received 1099s for each year?
Same questions for @Atlnative.
It is not fraudulent for Airbnb to ask for your social security number because they send you money. Anyone who sends you money related to goods or services will need your social security number.
I was over the 20K threshold and they have never asked for Tax ID nor 1099’d me. Makes no difference to me though I have been filing taxes all along. I just do not want to get screwed by not doing it if I am not asked. I wil keep an eye on this…
RR
This is true. They are required to do this. It is so the IRS gets their money even if you don’t pay taxes on it, it’s a failsafe.
This is true. And it will make your tax filing unnecessarily complicated.
This is ultimately true, but you can file to get it returned. It will be a lot more trouble than filing taxes normally with a 1099.
That’s weird. You should be getting one. Because you’re in CA, they should be filing one with them as well I believe. Anyway, it is best to go to your account and give your tax payer information . You don’t have to wait to be asked. You will suffer the consequences even if they don’t ask you for it. It’s Account → Payments & Payouts → Payouts and then scroll down to Taxpayer Information.
It really blows my mind that y’all aren’t getting 1099s.
They do withhold state or local taxes and occupancy/hotel taxes if your location requires them. They pay them on your behalf.
They do not withhold income taxes; however, if they don’t have your social security number then they will withhold 30% taxes next year. This has to do with new regulation.
You are doing the right thing by paying quarterly and all you have to do is go to your account and give them your social security number and it will be fine, they won’t withhhold.
Yeah, me too for @RiverRock. I knew I didn’t bill enough each year to get a 1099 so I never expected it. This year Airbnb starting paying my taxes directly to state and local governments but from what I’ve read here on the forum before, it’s a huge lump sum and they don’t really know WHO it gets attached to. And therefore you need to ensure you are filing still on whatever schedule your state and local requires to declare the income, but just declare no money due.
But I could be all wrong and maybe this way it is much easier and cleaner. Airbnb never really supplies much help (gee, what a surprise) just an email and website message that said they are paying the taxes, and they gave me a line to include the percentage to collect. I preferred doing it myself as I knew it was paid, but like always, things change.
What’s still unclear to me under the guidance for Dec. 1 and beyond has to do with my husband and I filing jointly. The message about adding a second person is a bit unclear as to married, filing jointly. Anyone?
I don’t think Airbnb is not paying any of your income taxes to anyone. They are paying local hotel/STR/occupancy taxes to your state and local governments. Those taxes are not related to your income or income taxes. Those are more like sales tax.
Sorry, I’m really confused by this. Are you saying Airbnb is withholding income taxes for you? (I am sure they aren’t paying for you ,) Are you sure that the email wasn’t about local occupancy taxes? I’m sorry, can you please clarify? It seems highly unusual for Airbnb to offer withholding (even more unusual to pay income taxes, you would get a W2 if they were paying any taxes for you). Usually, you just pay quarterly estimated taxes as a 1099.
Isn’t everyone paying quarterly estimated taxes?
I wouldn’t worry about that. We file jointly but the Airbnb income is considered my income and we only need one 1099. This would be more relevant if you shared the income with someone you didn’t jointly file with.
This new threshold seems like a positive thing for hosts, it will help keep your taxes straight. And you are less likely to get audited with a proper 1099. And for reference, this is not just Airbnb, it’s a new federal law.
When I said taxes I only meant state and local SALES/TOURISM taxes. Never meant to imply income taxes. For state SALES taxes, I used to file monthly, but then got a letter that said for 2021 to file annually…given we closed and reported zero $$ for months, they put us in another category. When we get busy again, we’ll go back to monthly I expect. (this is Georgia.)
For local, I filled out a paper and took to the tax office each month with a check. Still filing the paper but noting that Airbnb has remitted the amount…just to be sure there is a paper trail.
Ok, that makes sense. I mean except for the fact that your town has a monthly filing requirement, that’s nuts.
