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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29926
Experience:  Taxes, Immigration, Labor Relations
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LEv , Im a non resident alien and I had an income last year

Customer Question

Hi LEv , Im a non resident alien and I had an income last year of 3315 usd from Airbnb rentals , I rented a room in an apartment for which I have to pay rent. I did not receive a form from Airbnb , so I am not sure how to declare this income in my form Form 1040NR
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
Also, I live in Washington DC , the airbnb is located there . Do I also have to declare this Airbnb Income of 3315 in my state taxes ? Where can I make deductions for the rent I paid ?Thanks!
Expert:  Lev replied 1 year ago.
As that income is NOT effectively connected with the trade or business in the US - it is taxes at flat 30% rate.Generally you are expected to provide your tax information to the payer using from W8BEN.In this case - the payer would withhold 30% tax and woudl send you a form 1042S reporting payment and withholding.In this case - you would not need to report that income on 1040NR.If that is not an effectively connected income - deductions are not allowed - but as these are expenses related to taxable income - you may deduct those as miscellaneous itemized deductions..
Customer: replied 1 year ago.
I did not receive the form ! I sent them a W9 so they did not withhold any taxes. Then do I have to declare this , if so where ?
Expert:  Lev replied 1 year ago.
First of all - as a nonresident alien - you should NOT use from W9 - that is not correct.That form is for US citizens and resident aliens.Whether payment should be reported or not - that is a different issues.I might suggest to contact Airbnb and let them know about your mistake.To correct that mistake - provide them with signed form W8BEN..Regarding your tax liability - that income is reported on 1040NR NECand Tax on income not effectively connected with a U.S. trade or business will be on line 54That is regardless if income was reported to you and IRS or not - legally - you are required to report all your income.Questions?
Customer: replied 1 year ago.
I will ask Airbnb to re-register my information using W8BEN, but for the tax return I am doing I wont get the form from Airbnb in time. Then is it OK to report this income as not-for-profit rental income on Form 1040NR, line 21. And where can I introduce the rent expeses I have as a deduction ?
Expert:  Lev replied 1 year ago.
That would be based on your position that rental income you received is effectively connected with the trade or business in the US.If you take that position - then your proposed reporting is correct.
Expert:  Lev replied 1 year ago.
But if audited - I am afraid the IRS agent might disagree and re-classify your income as NOT effectively connected - and will assess additional tax liability.Regardless - you still may deduct rental expenses as related to taxable income .These are reported on schedule A - line 9 Other expenses..I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all tax related issues.