How do I report Airbnb income on Turbotax?

[Confused202]

I sublease a unit in California for Airbnb and this is my first year reporting income. How should I be reporting that income on Turbotax? Thanks!

[HelenC12]

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 Airbnb rental activity (where substantial services to guests were not provided) is generally reported on Schedule E:

1. Federal Taxes
2. Wages & Income
3. Rental Properties and Royalties - follow the instructions  Where do I enter income and expenses from a rental property?

NOTE:  Airbnb income may be reported in two different areas; there are very specific reasons why and each entry has a different tax outcome. 

1. Occasional, short -term rental with no guest services may be deducted as above
2. 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.

1. Federal Taxes
2. Wages & Income
3. Business Items
4. Business Income and Expenses (Sch  C)- you may be asked to upgrade to Self-Employed version.

Please refer to 10 Tips for Airbnb, HomeAway & VRBO Vacation Rentals for details.

Source: MargaretL

[Confused202]

How would you report it if you are only a renter of the unit and not the owner?

Thanks!

[ToddL99]

It depends.

If you want to deduct expenses incurred in subletting the unit, you would use the Rental Properties and Royalties interview of TurboTax Self-Employed (or Home & Business). Report income and expenses in this interview (you can't claim depreciation expense if you are sub-letting).

If you just want to report income, you can do that in the "Other Reportable Income" interview.

This is the very last interview in Wages and Income (Federal Taxes > Wages & Income > Less Common Income > Miscellaneous Income ).  For the Description, enter "AirBnB".  

(Or enter "other reportable income" in the Search Box and select "jump to other reportable income". These payments are NOT wages).  

 
This income will appear on Line 8, Form 1040.