How did tax reporting change beginning January 1, 2022?
The American Rescue Plan Act of 2021 requires that third-party payment processing companies report any income they pay to their users that equals $600 or more in one calendar year. This law took effect on January 1, 2022.
Short-term rental companies like Rent Like A Champion qualify as a third-party payment processing company and are required to comply with this law.
Going forward, we can only verify listings on our site if the homeowner shares their tax information with us, including their name, address, and TIN number. Homeowners with active listings will need to add this information. Any homeowner without this information will not be able to list or rent their property. Rest assured, the information we collect will only be used for tax reporting purposes.
Owners will then be sent a 1099-MISC every year if their gross rental earnings through Rent Like A Champion meet the $600 threshold.
When you are ready to share your tax information, log into your Rent Like A Champion profile and navigate to the “Payment Info” tab on your listing.
1099-MISC forms for the previous year will be sent both electronically or on paper at the end of January. Please consult with a tax professional to see how this will impact your income taxes.