As the merchant of record and payment settlement entity (PSE), Hospitable is required to issue Form 1099-K to anyone who has received payouts from Hospitable that meet the reporting threshold.
Form 1099-K
Form 1099-K reports gross payment transactions processed on your behalf. Hospitable will issue 1099-Ks to hosts and property owners that meet IRS federal and/or state reporting thresholds for any payouts received from Hospitable, which includes payouts for:
Direct Premium reservations
Upsells and commission on trip insurance sales
Claimed security deposits
Owner payouts
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 by January 31st of the following year.
For tax year 2025, you will be issued a 1099-K if you meet one of the following IRS reporting thresholds:
You have received greater than $20,000 in gross payouts and 200 payments 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 |
Multiple Payout Methods
If you have multiple payout methods, you will receive a 1099-K for each payout method. If there are multiple payout methods for the same tax identification number, the gross transaction amounts and reservation totals are aggregated to determine if you meet the IRS federal and/or state reporting thresholds.
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. You can find more details about this report here
Requesting Corrections to your Form 1099-K
If the information on your 1099-K is incorrect, you can request a correction after receiving your form. To ensure timely filing, please request corrections prior to March 1st.
To request a correction, contact Hospitable support via chat or email at [email protected] with the following information:
The information you need corrected:
Tax identification number (TIN)
Taxpayer name
Address
Reported amount
Account number on your 1099-K
Hospitable will notify you via email once your form is available and when any requested corrections have been processed.
Related Article: How Taxes are handled in Direct