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 is eligible to 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
States with lower filing thresholds
The following states have lower filing thresholds: Arkansas, District of Columbia, Illinois, Maryland, Massachusetts, Montana, New Jersey, North Carolina, Vermont and Virginia.
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.
Related Article: How Taxes are handled in Direct