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About Tax Form 1099-K
Disclaimer: This content is intended for general informational purposes only and should not be construed or relied upon as tax, legal or financial advice, or applicable to your particular situation. You should consult with your own tax advisor regarding your tax obligations. The views expressed in any of these resources do not represent the views and are not affiliated with or endorsed by Vrbo or Expedia Group in any way.
What is Form 1099-K?
What is the purpose of a Form 1099-K?
Why did I receive a Form 1099-K?
What are the reporting thresholds for Form 1099-K?
When are Forms 1009-K sent?
What do I do with Form 1099-K?
The 1099-K and Vrbo
What is Form 1099-K?
The Form 1099-K – Payment Card and Third Party Network Transactions - is an information return required by the Internal Revenue Service (IRS), the United States federal tax administrator. Form 1099-K reports the gross amount of all reportable payment transactions you’ve received in the last calendar year. A reportable payment transaction is a payment card transaction or a third-party network transaction. Please see Understanding Your Form 1099-K for more information.
For example, if you accepted online payments through Vrbo in 2023 and met the federal and/or your state reporting thresholds, the 1099-K you receive in 2024 will be referencing the payments processed in 2023.
What is the purpose of a Form 1099-K?
A 1099-K reports the gross amount of all reportable payment transactions, which is the total unadjusted dollar amount of all payment transactions for each participating payee.
The amounts on the 1099-K form may not correspond directly with a specific line on your U.S. federal income tax return, because the gross amount on the 1099-K is not adjusted to account for any fees, refunds, or any other amounts.
Why did I receive a Form 1099-K?
Form 1099-K is sent if the owner (or beneficiary) of the bank account used to receive payments is a U.S. person and has met or exceeded their state or the federal reporting thresholds.
The IRS requires we collect certain information from owners to determine if earnings are subject to U.S. tax reporting. We do this by confirming the name, citizenship, and primary address of the bank account owner when signing up for online payments. We are required to do this when a U.S. property is listed on our site or payouts occur in U.S. Dollars.
Our policy is to collect tax status information upfront, during payments onboarding, to make required tax filings and streamline the payments process. Any information you provide is securely stored.
After your application for online payments, you may receive an email to complete an electronic W-9 tax form. The form must be filled out for each bank account and signed by the bank account owner. To access or edit your W-9 tax form:
- Log in to your account
- Select Property
- Select Payment Options
- Locate the Property ID
- Locate Tax Forms above the Property ID
- Select Edit to update the form.
- Note: Selecting Update tax form will delete your current tax form, and you'll need to fill out and submit a new one.
What are the reporting thresholds for Form 1099-K?
Vrbo is required by the IRS to send Form 1099-K if you are a U.S. person, and we processed more than 200 payment transactions with a gross amount exceeding $20,000 USD during the calendar year 2023.
If you are a U.S. person and the address on the active W-9 falls within a certain state with a threshold below the federal threshold, Vrbo may be required to complete and file Form 1099-K with the state as well.
When are Forms 1099-K sent?
Vrbo will send 1099-K forms to eligible payees by the end of January via mail. For security purposes, Vrbo will never send Form 1099-K via email.
What do I do with Form 1099-K?
If you receive a tax form, it is your responsibility to determine your tax liability for U.S. income tax purposes. Amounts not required to be reported to the IRS by Vrbo may still be subject to U.S. federal and state income tax.
You are required to prepare your income tax return based on your separate books and records, which should include income and expenses related to vacation rental transactions completed on the Vrbo website. This includes booking data available in your Payout Summary and income and expenses from other sources.
Please consult your U.S. income tax advisor if you have additional questions.
The 1099-K and Vrbo
Vrbo reports all payment transactions associated with the same tax ID number on a single form. This may include payments across multiple listings if the bank account beneficiary is the same on each tax form W-9. This helps us ensure we are compliant with federal and state filing thresholds. The 1099-K includes the gross value of payment transactions processed via Vrbo’s platform without reduction for:
- Vrbo commission
- Refund transactions
- Payment Processing fees
- Other applicable fees such as Custom or Standard fees
IRS Resources
- IRS announces delay in Form 1099-K reporting threshold for third party platform payments in 2023; plans for a threshold of $5,000 for 2024 to phase in implementation.
- IRS: Webinar on 2023 Form 1099-K rules
- 1099 Series of Documents
- Understanding Your Form 1099-K
- General FAQs on Payment Card and Third Party Network Transactions
- Classification of Taxpayers for U.S. Tax Purposes