Do You Report My Income?

It is your responsibility as a Property Owner to report and pay any taxes associated with your short term rentals. There are two different types of taxes often associated with short term rentals, income tax and transient occupancy tax, for more information regarding these taxes please read Pillow's article on Taxes

Each platform is setup differently in reference to reporting income. When you first sign up for Airbnb, they will request your taxpayer information to provide an accurate report of earnings for the year. If you submit a W-9, Airbnb will provide a Form 1099-K to show your reportable earnings. For more information regarding Airbnb taxes please read How Do Taxes Work for Hosts

Due to Pillow’s integration with HomeAway, if you make over $20,000 across 200 or more transactions from HomeAway reservations we will request your W-9 information before the end of the year. You will then be provided with a Form 1099-K with your reportable income. If you do not make over $20,000 across 200 or more transactions, no forms will be provided. Additionally, Pillow does not submit any income information on your behalf to the IRS.

An additional tax you have the responsibility of remitting to your local government is the transient occupancy tax (TOT). Dependent on your location, Airbnb may handle this for you, for more information please read What is occupancy tax? Do I need to collect or Pay it?. Pillow will collect TOT from HomeAway reservations on your behalf and includes it in the reservation payout to you. By default, your Pillow Account will recommend the highest TOT in your region. It is your responsibility to update the TOT in your Pillow Owner Dashboard with your municipality's regulations. This change can be made on the pricing page in your Owner Dashboard.

If you have not received a 1099-K from Pillow you can download a CSV of your yearly earnings through Billing Statement in your Pillow Owner Dashboard.

*Pillow does not provide tax or accounting advice. This material has been provided for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors before filing any taxes.

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