The federal government imposes tax reporting requirements on companies like Outdoorsy. This means we must notify the Internal Revenue Service (IRS) of the reportable payments that just about everyone receives from our platform.
This works best when we have your tax information on file. In January of each year, we report your payments to the IRS, and we create a 1099-K tax form for you.
You can add your tax information in the Account area of your Dashboard, on the Payout preferences or Tax docs tab.
If you’re new to hosting on Outdoorsy, you won’t be able to accept a booking until you provide your tax info. You’ll also need to connect a bank account for direct deposit of your payments.
If you’ve been hosting on Outdoorsy for a while, you can continue to accept bookings. However, we’ll automatically withhold 24% of all your reportable payments as income tax. We remit this to the IRS in your name.
Since the withholdings aren’t tied to your tax info, the IRS may not recognize the payments as yours. They may even bill you again for the taxes you’ve already paid, and there could be penalties and fees on top.
That’s why, even if you’re in withholding, you should provide your tax information to Outdoorsy. We’ll stop withholding once you do.