Airbnb income may be reported
in two different areas; there are very specific reasons why and each entry will
have a different tax treatment.
If you rented the rooms for 14 days or less, you are not required to report the rental income. But you cannot
deduct any related expenses, either.
Occasional, short -term rental with no guests services may be deducted as rental income:
- Federal Taxes
- Wages
& Income
- Rental Properties and Royalties - follow the
instructions Where do I enter income and
expenses from a rental property?
If you dedicate a room in your home solely for the paying
clients, never live in that room and
provide services such as regular cleaning or maid service, provide coffee or
breakfast, you may be considered "running a business". In
this case, you would deduct your income and expenses as self-employed
income, subject to Social Security and Medicare tax.
- Federal Taxes
- Wages & Income
- Business Items
- Business Income and Expenses (Sch C)- you may be asked to upgrade to
Self-Employed version.
Your 1099-K question: You don't have to have 1099-k or any forms to report rental income. You are fine as long as you have the correct amount of your rental income received. All you have to do is enter it in the section where we ask you enter rental income or gross income/general income as explained above.
Please refer to 10 Tips for Airbnb, HomeAway & VRBO Vacation
Rentals for
details.
