Taxes. We talk about the topic year-long – and rightfully so. In a seemingly purposefully puzzling system of rules, expectations, and payments, it quite literally pays to remain constantly aware of what your obligations are as an Airbnb host. This article is a guide for those based in the United States. In the lead up to tax season, lots of owners are asking questions about filing, forms, and financial savings galore. We’ll address the most common while explaining the basics everyone can benefit by learning.
Why You Should Care About Airbnb Taxes
Personal taxes are annoying enough. So much so that you might consider ‘forgetting’ to do the business ones altogether. Take it from the reprimanded and jailed that it isn’t worthwhile. Both Airbnb and the IRS make it clear that flouting financial reporting requirements isn’t okay. With the former, rule-breaking can result in tax withholding, suspended payouts, and the inability to accept future reservations.
Then there’s the really serious government-level stuff.
When you fail to report Airbnb income accurately, you’re essentially skirting federal tax law– and the IRS has zero tolerance for that. Ignoring filing duties or misrepresenting earnings can lead to penalties, audits, and even criminal charges in extreme cases. The IRS receives a copy of any 1099 or other tax form Airbnb issues, meaning your reported income is already on their radar before you even file a return. If your numbers don’t match, expect questions.
Moreover, ignoring Airbnb income can inadvertently overstate your financial position when applying for mortgages, lines of credit, or business loans. Tax returns are often used by lenders to assess eligibility, and unreported rental income is effectively invisible to them, shrinking your legitimate earning power.
Who Is Required to Report Airbnb Taxes?
If you meet Airbnb U.S. tax reporting thresholds, the platform will send out a tax form to you by January 31 each year, covering income from the previous calendar year. This could arrive by post or appear in your Airbnb account’s taxes section
In short, anyone who earns income through Airbnb that meets the IRS’s reporting requirements must report it.
This includes:
- U.S. citizens or U.S. tax residents, including green card holders and individuals who meet the
- IRS Substantial Presence Test
- U.S.-registered business entities renting out properties
- Non-U.S. residents who host listings located in the United States
If you fall into these categories, Airbnb will report your gross earnings from bookings on the appropriate tax form (for example, Form 1099‑K or a 1042‑S), depending on your residency status and payout details.
What Is Form 1099-K?
Let’s begin with good old Form 1099-K. Lovely name, but a high-stakes game when filing Airbnb taxes in the U.S. It covers things like referral bonuses, community rewards, or incentive payments that don’t come directly from bookings.
For most hosts, the amounts from completed reservations are instead reported on Form 1099‑K, which shows the gross total Airbnb processed on your behalf. However, if you received other types of payouts that aren't tied to guest stays, the 1099‑MISC will be what you need to include when filing your taxes.
What Is Form W9?
If you’re a U.S. citizen, resident, or business entity operating within the country, Airbnb requires a completed Form W‑9. This form confirms your Taxpayer Identification Number (TIN) – usually your SSN or EIN – and certifies that you’re subject to U.S. tax rules.
Submitting your W‑9 ensures Airbnb can report earnings properly to the IRS and prevents unnecessary withholding on your payouts. You can complete or update your W‑9 directly in your Airbnb account under “Taxes”, and the official IRS instructions provide additional guidance.
What Is Form W-8ECI?
If you’re a U.S. citizen, resident, or business entity operating within the country, Airbnb requires a completed Form W‑9. This form confirms your Taxpayer Identification Number (TIN) – usually your SSN or EIN – and certifies that you’re subject to U.S. tax rules.
Submitting your W‑9 ensures Airbnb can report earnings properly to the IRS and prevents unnecessary withholding on your payouts. You can complete or update your W‑9 directly in your Airbnb account under “Taxes”, and the official IRS instructions provide additional guidance.
What Is Form W-8BEN/-E?
If you’re a non‑U.S. resident who either does not file a U.S. tax return or does not receive payouts from U.S. listings, you’ll complete a W‑8BEN (for individuals) or W‑8BEN‑E (for entities). This form certifies your foreign tax residency.
For non‑U.S. hosts with U.S. listings, filing a W‑8BEN/-E typically means Airbnb will withhold 30% of gross U.S. earnings for IRS remittance. It’s not ideal if you’re eligible to claim deductions, but it’s required if no U.S. return is filed. Airbnb provides step‑by‑step W‑8BEN instructions in its Help Center so you can file it correctly.
Burdensome but ultimately non-negotiable, Airbnb taxes in the United States is something every host should be up to speed on. The hard work that goes into understanding reporting is worthwhile for the reputational and financial implications of ignorance.
