Foreign taxes withheld

Forum|Forum|3 years ago
April 4, 2023
1 reply
20 views

I signed up for air bnb with a partner and there was some confusion, so I thought they included the needed tax information, but they never did. Air bnb withheld foreign taxes from my payouts and sent it to the irs. They said I can request a refund on my taxes, but how do I go about this?

Best answer by ErnieS0

Any U.S. withholding would be added to the rest of your withholding. Any excess withholding would be returned to you as part of your income tax refund.

You should have a 1099 from Airbnb with a box for federal tax withheld. TurboTax will transfer that amount to Form 1040, line 25b.

RalphH1

Level 6

If Airbnb withheld taxes which were sent to the IRS, filing a U.S. tax return is generally the way to get that money back. As the company tells us on its website (here), you should get a 1099 or 1042-S form showing the withholding amount. And how much of that will ultimately be refunded depends on the other U.S. source income and deductions on your return.

Since you wrote that the withheld taxes were “foreign,” I’m assuming that means you’re living outside the U.S. (as taxes for other countries aren’t remitted to the IRS). If this is correct, you would need to file this 1040NR form, which isn’t supported by TurboTax, but is supported by our partner, Sprintax (here).

But if my assumption is wrong and you’re a U.S. resident, the confusion you mentioned is lingering (but on my part now!). You would file a 1040 return in that case (the TurboTax main page would be Step One), and would claim the withholding as stated above, as long as it was indeed U.S. tax which was sent to the IRS. But if the taxes were actually withheld not for the IRS, but for another country (as discussed by Airbnb here), then the rules of that country would dictate any possible refund process. (TurboTax employees can’t speak on that, but sometimes someone else comes by who is familiar.)

@Laleda92, be sure to re-post with any followup questions (or to correct my confused ramblings, so I can possibly be more helpful!)...

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Laleda92Author

Level 2

I am a U.S. citizen living in the U.S. There was some confusion so I didn't put my tax ID on file in time, so when they did my payout, they withheld 30% for foreign taxes. Once I updated my social they informed me they couldn't refund those taxes and I would have to claim them on my return. I was just wondering when I file, where do I reclaim these taxes?

ErnieS0Answer

Level 15

Any U.S. withholding would be added to the rest of your withholding. Any excess withholding would be returned to you as part of your income tax refund.

You should have a 1099 from Airbnb with a box for federal tax withheld. TurboTax will transfer that amount to Form 1040, line 25b.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"