The federal government imposes tax reporting requirements on companies like Outdoorsy. This means we must notify the Internal Revenue Service (IRS) of reportable payments that just about everyone receives from our platform.
Without your tax info, we can’t do this. But, that doesn’t mean you’re off the hook.
By law, if Outdoorsy doesn’t have your tax information, we must withhold at least 24% of your reportable payments as income tax. We remit this to the IRS for you.
You can add your tax information in the Account area of your Dashboard, on the Payout preferences or Tax docs tab.
We’ll automatically withhold 24% of all your reportable payments, but this is far from ideal. You may not get credit for withheld tax payments because they go to the IRS without your tax information.
Yes, once you provide your tax information, Outdoorsy will stop withholding on future payouts.
We remit the money to the IRS in your name, and you may be able to treat the withholdings as tax payments made by you. However, you may face difficulties given that the payments we remit aren’t tied to your taxpayer identification number.
That’s why, even if withholding has started, you should provide your tax information to Outdoorsy.
It depends on when the withholding occurred and when you submitted your tax information. However, generally, Outdoorsy is prohibited from returning withheld amounts.
It typically depends on how much you receive in reportable payments each year, although tax laws do change form time to time.
For the 2022 tax year, we must notify the IRS of your reportable payments and prepare a 1099-K tax form for you if:
If you don’t meet either of the above requirements, we may not report anything to the IRS. You should consult with your own tax advisers to determine whether you need to report any activity on your income tax return.
For the 2023 tax year, it’s possible that any host making at least $600 will get a 1099-K. We’ll keep an eye out for any new developments.