Important 2023 tax updates for US Turo hosts

posted on September 28, 2023

Update: On December 6, 2023, the IRS announced that a lower threshold to qualify for 1099-K will be postponed until 2024, so the threshold will now remain unchanged for the 2023 tax year. In 2024, the threshold will lower to $5,000, with the goal of phasing in the $600 threshold over the years to come. You can read more from the IRS here.

To comply with this latest update from the IRS, Turo hosts will now only receive a 1099-K for 2023 if a) they earned more than $20,000 in gross earnings and had more than 200 transactions in 2023, or b) reside in a state that has a lower qualifying threshold, including District of Columbia ($600+), Illinois ($1,000+), Maryland, ($600+), Massachusetts ($600), Missouri ($1,200+), NewJersey ($1,000+) Vermont, ($600+), and Virginia ($600+).

Visit this page to find helpful tax filing resources for your business on Turo.

1099-K threshold lowering for 2023

Up until the end of 2022, most Turo hosts only received a 1099-K tax form if they earned more than $20,000 annually and had at least 200 transactions throughout the year. Certain states required reporting on lower earnings, but the federal threshold for qualifying for a 1099-K was $20,000 in earnings and more than 200 transactions.

This year, anyone who receives $600 or more from selling goods or services from third-party platforms, like Turo, will receive a 1099-K tax form, regardless of their total number of transactions throughout the year. This will dramatically increase the number of hosts receiving a 1099-K form from Turo.

The threshold change was supposed to happen last year. But in December 2022, the IRS announced the one-year delay to “help smooth the transition and ensure clarity for taxpayers, tax professionals, and the industry,” according to the IRS commissioner.

Now that we’ve all had time to adjust, the threshold changes are set to take effect for tax year 2023. This means you may need to submit your tax info to Turo soon if you haven’t already.

Action required for US hosts: Submit your tax info by November 1, 2023

For Turo and the host community to comply with these new requirements, hosts who haven’t submitted their personal tax information (a.k.a. “Form W-9”) to Turo must do so by November 1, 2023. Hosts who don’t submit their info by November 1 will have their payments paused until they provide the required information.

To submit your tax info, log in to your account, switch to host mode, go to your Business tab, select “Tax information” under “Resources”, and tap or click the link on the banner at the top of the page.

Submit your tax info today to avoid disruption to your business on Turo!

Submit your tax info

Check out these resources if you want to learn more about the changes: