Refunded vacation rental

[Claude B]

I reserved an Airbnb but the host canceled when we arrived.  Airbnb refunded our money and provided a different rental at no charge.  Airbnb sent an "Earnings Summary" for the year in the amount of $2,500 (the value of the new rental) but it is not in the form of a 1099 or any other U.S. tax form.  Airbnb told us on the phone at the time that it wasn't taxable because it wasn't over $20k.  I believe it probably is taxable but I'm not sure where to enter it.

[TomK2023]

You can treat it as Miscellaneous Income. .

Enter this Miscellaneous Income:

1. Click on  Federal tab.
2. Click on Income & expenses.
3. Scroll down to Less Common Income.
4. Click on Start or Update button Miscellaneous Income, 1099-A, 1099-C
5. On the next screen (Let's Work on Any Miscellaneous Income), click the Start or Update button for Other reportable income.
6. Did you receive any other taxable income.  Click Yes.
7. Other Taxable Income, enter a description (e.g., Free Airbnb Rental) and the amount.  Click Continue.
8. Click Done.

The income will be reported on Schedule 1 line 8 (z) with the description that you entered. 

[Claude B]

Thank you for your help.  I considered putting it under Miscellaneous Income but since it wasn't on a 1099 of any type I wasn't sure.  I probably should have just followed that path to see where it would go.  Thanks again.

[HelenC12]

You may also report it as other reportable income. To enter other reportable income, not on a 1099 form, follow these steps:

1. Sign into your TurboTax account.
2. Select Pick up where you left off or Continue your return.
3. Select Federal from the left side menu.
4. Type other reportable income in the search bar and click on the Jump to other reportable income.
5. On the Other Wages Received screen, select No at Did you receive any other wages? If you select Yes, you’ll be directed to enter your wage income. Proceed to Step 9.
6. If the “Jump to” feature doesn’t work, on the Wages and income screen, scroll down to Add more income. If you don’t see this, scroll down to Less Common Income and select Show more.
7. If your income is not listed, select Miscellaneous Income, 1099-A, 1099-C and Start or Revisit.
8. On the Let’s Work on Any Miscellaneous Income screen, if your income is not listed, scroll down to and select Other reportable income and Start or Revisit.
9. On the Any Other Taxable Income? screen, select Yes.
10. On the Other Taxable Income screen, enter a description and amount, then Continue.
11. On the Other Miscellaneous Income Summary screen, confirm the entry and select Done.