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US Income Tax Reporting for Direct
US Income Tax Reporting for Direct

Understand how income tax reporting works for Direct bookings

Abby Grous avatar
Written by Abby Grous
Updated over a month ago

As the merchant of record for Direct Premium, Hospitable is required to issue Form 1099-K to Direct Premium hosts that meet the reporting threshold.

Form 1099-K

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.

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.

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 of the following year.

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

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 for the previous year in early January.


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