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Income Tax Reporting for Direct
Income Tax Reporting for Direct
Abby Grous avatar
Written by Abby Grous
Updated yesterday

Form 1099-K reports gross payment transactions processed on your behalf. Starting in 2024, Hospitable will issue 1099-K forms to to US based Direct Premium hosts who meet IRS federal and state reporting thresholds.

In 2023, form 1099-Ks were issued to eligible hosts by our Direct Premium payments service provider, Adyen. Starting in 2024, Hospitable will handle 1099-K filings directly, reporting transactions on the date the funds were paid out to you.

To prevent reporting the same income twice, reservations that were booked in 2023 but paid out in 2024 will be excluded from the totals reported on your 1099-K for 2024 if you received a 1099-K in 2023.

Who will receive a Form 1099-K from Hospitable

If you meet US tax reporting requirements for the tax year, you will receive the 1099-K form in the mail and/or via email by January 31st.

For tax year 2024, you will be issued a 1099-K if you meet one of the following IRS reporting thresholds:

  • You have received greater than $5,000 in gross payouts from Hospitable

  • Your resident state has a lower filing threshold for income taxes

Form 1099-K for Direct Basic

Direct Basic hosts will not receive a form 1099-K from Hospitable. If you are eligible, you will receive the form from Stripe.

Understanding your Hospitable Form 1099-K

A 1099-K form reports gross payment transactions processed on your behalf through Hospitable's platform. Gross payment transactions:

  • Includes gross reservation totals including nightly rates, cleaning and other guest fees, ad hoc charges, and pass-through taxes

  • Excludes guest service fees and taxes remitted by Hospitable

Amounts will be reported on the date that you were paid out for the transaction. If a guest cancels before check-in and receives a full refund, the reservation will not be included in the total.

Host service fees (payment processing fees) and adjustments that occur after check-in (e.g. alterations, cancellations, and partial refunds) are not deducted from the reported amounts.

Example:

Accommodation: $250/night x 3 nights

$750

Cleaning Fee

$100

Pass Through Taxes

$50

Hospitable Remitted Taxes

$20

Guest Service Fee

$34

Total Paid By Guest

$954

Total Reported on 1099-K

$954-$34 (guest service fee) -$20 (Hospitable remitted taxes) = $900

Host service fees (payment processing fees)

-$28.62

Net Payout

$871.38

How to reconcile your Form 1099-K

Hospitable will generate an annual earnings report for you to reconcile your gross earnings, host service fees, and adjustments not included in your 1099-K earnings. This report will be available in early January. You can find more information about this report here.

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