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How to report Airbnb income on tax return [US guide]

Ucha Vekua

14.07.25

Read time 3 minutes

Renting out your home or spare room on Airbnb can bring in solid extra income, but come tax season, many hosts find themselves scratching their heads. Taxes are confusing, and they get even more complicated when your rental property is in another country while you file your taxes in the US.

Here's a simple guide on how to report Airbnb income on your tax return if you're a US citizen or resident. It'll cover both domestic and international properties.

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Table of contents
How to report Airbnb income on your tax return Domestic property International property Choosing the right form: Schedule E vs Schedule C What is Form 1099 & why is it important?

How to report Airbnb income on your tax return

Every dollar you earn from Airbnb is taxable income. There's only 1 exception: if you rent out your main home for fewer than 15 days per year, that income stays tax-free.¹

Also, keep in mind that you'll pay taxes on your profit (income minus expenses) and not your total earnings. Your gross earnings from Airbnb will always be higher than what lands in your bank account because of platform fees, cleaning expenses, and other costs.

Domestic property

💡 Your Airbnb rental income is taxable. Here's how to report it:
Open your tax software: Use whatever program you prefer, like TurboTax or FreeTaxUSA Report your rental income: Look for the "Income" section and enter the amount from your Form 1099 if you received one from Airbnb. If you haven't received this form, enter your total Airbnb earnings from your records Choose your tax schedule: You can file using Schedule E if you provide basic hosting services or Schedule C if you offer hotel-like services such as daily cleaning and breakfast Claim your deductions: Your tax software will likely walk you through common Airbnb expenses you can write off, such as cleaning fees and maintenance costs Double-check everything and file: Review your numbers one more time and hit submit

💡 Your Airbnb rental income is taxable. Here's how to report it:

Open your tax software: Use whatever program you prefer, like TurboTax or FreeTaxUSA
Report your rental income: Look for the "Income" section and enter the amount from your Form 1099 if you received one from Airbnb. If you haven't received this form, enter your total Airbnb earnings from your records
Choose your tax schedule: You can file using Schedule E if you provide basic hosting services or Schedule C if you offer hotel-like services such as daily cleaning and breakfast
Claim your deductions: Your tax software will likely walk you through common Airbnb expenses you can write off, such as cleaning fees and maintenance costs
Double-check everything and file: Review your numbers one more time and hit submit

There can be more nuance to this process depending on your situation, especially when it comes to deductions.

If you get confused, it's worth reaching out to a tax professional to make sure you're reporting everything correctly while taking advantage of all available tax breaks.

International property

US citizens and residents must report income from anywhere in the world, including your Airbnb or short-term rental in another country.

You might catch a break through tax treaties or foreign tax credits if you're already paying taxes on that rental income in the country where your property is located. These provisions can reduce or eliminate double taxation, but you still need to file your US tax return and report the income.

Choosing the right form: Schedule E vs Schedule C

One thing that can be quite confusing when you're trying to figure out how to report Airbnb income on a tax return is whether you should use Schedule E or Schedule C. Essentially, the form you use depends on how hands-on you are with your guests.

If your guests mostly just get your space and basic amenities, Schedule E is your go-to. If you're regularly providing services that make it feel more like a bed-and-breakfast or hotel experience, Schedule C is probably your best bet.

Let's take a closer look at these forms:

	Schedule E¹	Schedule C¹
Best for	Basic rental	Hotel-like services and amenities
Services you provide	Cleaning between stays, basic maintenance	Daily cleaning, meals, concierge help, any “extra” services
Self-employment tax	No (0%)	Yes (15.3%)
Deductions	Property expenses, utilities, repairs - more basic	All business expenses, marketing, and supplies - more extensive

If you're not sure which form to use, consult with a tax professional. Sometimes, using the right form can make a big difference in how much you owe the IRS.

What is Form 1099 & why is it important?

Form 1099-K is a tax document that reports third-party network transactions. Basically, it shows how much money flowed through platforms like Airbnb to your bank account.

You'll receive this form from Airbnb if your earnings hit certain thresholds, and you'll use it when you're filing taxes.

Airbnb must send you a 1099-K when your total transaction payments exceed 5,000 USD in 2024 and 2,500 USD in 2025. Starting in 2026, that threshold drops to 600 USD.²

Even if you don't receive a 1099-K, you still need to report all your Airbnb income. The form makes record-keeping easier, but if you're below the threshold, you can look at your earnings history to report your income to the IRS.

The bottom line is that you must report every dollar you earn from your Airbnb, whether your property is in the US or another country.

The paperwork might be tedious, but it'll keep you out of trouble with the IRS. If you're ever in doubt, consult with a tax professional who has experience with short-term rentals.

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Sources

Sources

AirDNA - How to File Airbnb Income
Airbnb - Frequently asked questions about US taxes

Sources checked 07/11/2025

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