If I earned less than 20K, what do I need to put on my tax form?

[Pam-and-Thomas0]

I earned less than 20K, and I live in the house (just rented out a room).  What do I need to fill out for tax purposes, if anything?  I don't want to break any laws and am happy to submit any necessary information.  Just wanted to check!

[Clare0]

@Pam-and-Thomas0 Hi! Just because you may not be receiving a 1099K from Airbnb, you still need to report your rental income according to IRS provisions.  Publication 527, if you want to slog through it, covers vacation rental income.  You need to go to your Account and select Transaction History then Earnings Summary to get the info for tax purposes.  Many hosts use tax prep experts to figure income and deductions for your rental activity.  I'm cheap so I use Turbo Tax software. 

[Camila4]

Hi @Clare0 and @Pam-and-Thomas0, what if I dont own the property that I rent out + its located out of state? Im currently based abroad and staying at a friends place that doesnt mind me renting out the space. Where do I put that in? I made less than 10,000 on my earnings. 

[Clare0]

@Camila4 Assuming you are a US taxpayer, you are required to report income regardless of how that income is generated. .  I'm not a tax expert so you need to consult someone who is able to give you advice. 

[Camila4]

Thanks! Im just curious to see how other people are handling it. 

[Dawn7]

Hi Claire, I am using turbotax as well but am not sure if I put my earnings in as business income (sched c) or rental property (sched e). Any insight would be greatly appreciated. Thanks!

[Clare0]

@Dawn7 go ahead! Give me tough question!  🙂  I put it in rental income last year and this year so it comes up as shedule e.  But, I'm not sure that is correct.  Evely Badia (who is also an Airbnb host) had a webinar in which she had a tax expert who said the income should be on schedule c. 

I may rethink how I do it.  But here's the webinar on YouTube in case you missed it. 

https://www.youtube.com/watch?v=w_ZKUY6BCiM

[Pete28]

I believe that the IRS might think you are running a business, not a rental if you do STR mostly of less than a month. 

Schedule E is meant for passive income. ... The main difference between these schedules is that under Schedule C you are subject to self-employment tax and under Schedule E you are most likely subject to Passive Activity Loss Limitations.

with that said, I more familiar with schedule E and don't want to learn a new set of skills 🙂

[Russell7]

I earned a little less that 20k and less than 200 guest stays so it won't be reported, but I am still concerned. I don't own the house I house share/rent using Airbnb? I understand that I received income from going through Airbnb, but I don't consider this earned income. I consider this part of the rent. I got divorsed and it's very expensive to rent in in my location so I got a roomate who left me hanging so I got another roomate from putting an ad on craigslist who paid me since I hold the lease and I pay my landlord.  I did not consider what they paid me as income. I know many people who do this and they don't consider it income.  So that roomate left and I could not come up with rent by myself again. I heard about house shareingmy landlord approved me to do Airbnb with the understanding that I would be responsible for any damages instead of getting a roomate. The money made from Airbnb is not mine it goes to my landlord for rent. I have looked everywhere and don't see how to handle this for Tax purposes. I  love being a host better than having a full time roomate and won't give this up, but I dont' think I should have to report this as income either. Does anybody have or know about this situation and have a tax solution? I can't be the only one.

[Clare0]

@Russell7 I would strongly urge you to consult with a professional expert on this.  In my view you were paid for a service regardless of what you used the money for.  If the payouts went directly to your landlord and you did not have constructive receipt of the money that would be a different matter.  Just sayin...

[Karen499]

According to the USA IRS:  You must claim all worldwide income on your tax return.   

If your landlord is renting out the room and you just collect rent and pass it on to him/her, it is your landlord's income.  Make sure any checks are made payable to the landlord or you can be responsible for the taxes (and any penalties that apply).

If you are renting rooms out (whether you own the property or not) then it is your income and you are supposed to claim it on your tax return - just as you would claim employment income. 

This is self-employment Rental Income and claimed on Schedule E.  You can deduct Rental Expenses (insurance, maintenance, etc.) on the same form.

If you run a business as sole proprietor you claim Rental Income & deduct Expenses on Schedule C. 

Schedule E & C are filed with Form 1040.

If the entity is a Partnership of S Corporation, you claim Rental Income & deduct Expenses on Form 8825 & file it with Form 1065.

Be sure to consult a Tax Professional before filing any tax forms.

[Amie6]

so if you make less than 20k and had less than 200 guest stay airbnb does not report to the irs?  Am I understanding this correctly?

[Letti0]

@Amie0 This is not actually true in all cases. If you earn over $600 annually from AirBnB and live in certain states MA and VT are two I know of that require AirBnB to issue 1099's. 

[Brad-and-Jenn0]

Hi Russel, I am in the exact situation as you. Did you ever find a solution? 

[An-Flora0]

Hi Clare, so I do turbotax too, how did you report your Earnings Summary? Did you pay extra for the business package? I cannot find anywhere to fill in these earnings? Do you include costs like breakfast? Please help me out, thank you!