Fast Facts:
|
Providing your tax information to Turo
Per IRS regulations, Turo requires all hosts to provide their tax information to Turo. That’s because Turo routes your earnings to you through our marketplace. To help you provide us your information, we’ll provide a tool that allows you to complete a digital IRS W-8 or W-9 form. The form you complete depends on your country of residence. The information in these forms will determine if your payments are subject to tax reporting and withholding.
Using the tool
When you log in to your Host Hub, you’ll see a button prompting you to “Enter Tax Information.” When you click that button, the tool will walk you through entering the information necessary to complete your W-8 or W-9 form. This tool will be available to you December 12, 2019.
To fulfill the IRS requirements as efficiently as possible, enter all information requested on the tax form. Take care to avoid misspellings and avoid entering incorrect tax identification numbers. These errors could invalidate your tax form.
If you’re not sure about something while you’re completing the form, hover over the “?” icon to get more context. If you have more specific questions, consult your tax advisor.
Frequently asked questions about completing your W-8 or W-9 form
How do I know if I’m a “US person”?
In general, you’re considered a “US person” if you are a:
- US citizen
- US resident (Green Card and Substantial Presence Test)
- Entity organized under US (US Law = 50 states and DC)
Do I need a Tax ID number (TIN) to fill out the tax form?
For US persons
- For individuals: You need to provide your social security number (SSN) and your name as it appears on your social security card.
- For businesses: You need to provide your employee identification number (EIN) and the name found on your CP575A notice issued by IRS.
To ensure your form is filled out correctly, confirm which federal tax classification type your TIN belongs to. If you’re a single-member LLC, enter the owner’s SSN and name.
For non-US persons
If you’re a non-US person, confirm your name, address, and country of residence. You don’t need to provide a tax ID number.
What is a TIN?
For US persons
Your TIN (tax identification number) can be your:
- Social security number (SSN): You can find this on your social security card.
- Individual taxpayer identification number (ITIN): Find this on the CP565 notice.
- Employer identification number (EIN): Find this on the CP575A notice.
To ensure your form is filled out correctly, confirm to which category your TIN belongs. If you are a single-member LLC, enter the owner's SSN or EIN. Don’t leave this portion blank.
For non-US persons
If you have a tax ID issued by your local taxing authority, you may use that number in the ”TIN Value” section.
What name do I need to provide on the tax form?
The name on the "Name" line must match what’s shown on your income tax return and should never be left blank. If your federal tax classification is:
- Single-member LLCs — Enter the first and last or legal entity name of the owner.
- Individual/sole proprietor — Enter your full name exactly as it appears on either your social security card or your income tax return.
- Trust — Enter the name as it appears on the trust deed.
- Partnership — Enter the name as it appears on the partnership agreement.
- Corporation (C/S/LLC-s/LLC-c) — Refer to CP575 notice to confirm your federal tax classification type or contact the IRS.
- Other — If you’re a nonprofit under Internal Revenue Code sections 501(c) or 501(d):
- Select “Other” as your federal tax classification.
- Open the “Other type” dropdown menu.
- Select the first option, “An organization exempt from tax under section 501 (a), any IRA, or a custodial account under section 403(b)(7) if the account satisfies the requirements of section 401(f)(2).”
- Refer to the code section that states under 501(a), "An organization described in subsection (c) or (d) shall be exempt from taxation….”
- Therefore, by saying you’re exempt under (a), you are saying that you are exempt under either (c) or (d).
Am I a single-member LLC?
According to the IRS, there’s no difference between an "individual" doing business as an individual and an individual doing business as a "sole proprietor" or "single-member LLC." Sole proprietors/single-member LLCs are taxed as ”individuals.” Therefore, use the individual owner's name and NOT the business name when you complete the tax information.
Do NOT assume that because you have an EIN you must use a business name. For example,
Chris Jones owns ABC Landscaping LLC, which is a single-member LLC. To complete the tax form, Chris Jones has to check the “Individual” box and use his SSN.
However, if you’d like to use the business name and the EIN, consult a tax advisor to understand more about tax liability as a single-member LLC.
How do I update my address?
To update your personal information, you'll need to edit the tax form.
Do I have to consent to provide an electronic signature on the tax form?
An electronic signature is not required. However, consenting to an electronic signature will ensure your tax information is processed quickly and safely. You don’t need any special hardware or software to do so. All you have to do is check a box and type in your name to complete the validation online.
If you don’t use e-sign, you’re required to print, sign, and send the document to the address provided below. It may take up to 10 business days for the validation to complete after your documents arrive at the below address:
Turo Finance
111 Sutter St, Suite 1300, San Francisco, CA 94101
I have provided my tax identity. How long will it take to see if it’s valid?
After you update your tax identity information, your account’s tax information section will display a message letting you know that Turo will validate the information you’ve provided. If we find your information doesn’t match IRS records, we’ll send you an email with instructions on how to proceed.
You can mail your hard copy document instead of signing electronically. If you do, we’ll require 10-15 business days upon receipt to process it.
If we find that your information doesn’t match IRS records, we’ll send you an email with instructions on how to proceed.
Why did I receive an email saying that my tax identity information is invalid?
We don't know exactly why your tax identity information came back as invalid. Here are some things to consider:
- If you’re completing the tax identity information as an individual, use the information that appears on your social security card.
- Validation of your form may fail if you:
- Misspell your name
- Fail to include your middle initial or middle name
- Enter an incorrect tax identification number
- If you’re completing the information as a business, use the name that appears on the top line of the address on your CP575A notice from the IRS.
- If you provided tax identity information and it came back invalid, you have 30 days from the date of the email from Turo to correct it. If you don’t provide corrected tax identity information within 30 days, your Turo account hosting privileges could be suspended.
Receiving a 1099-K tax form
If you earned at least $20,000 in unadjusted gross sales and had more than 200 transactions in 2019, Turo will issue you a Form 1099-K. If you don’t meet both of those thresholds, you won’t receive a Form 1099-K. 1099-K tax forms for 2019 will be sent electronically to all applicable hosts by January 31, 2020.
Additionally, recent changes in state tax law require Turo to report unadjusted gross sales of $600 or more to hosts with addresses in Massachusetts or Vermont.
Turo will not issue a Form 1099-K to individuals who completed a Form W-8.
US persons:
We’ll electronically send 1099-K forms for 2019 to all applicable hosts by January 31, 2020.
Non-US persons:
Turo will not send you a 1099-K tax form. We will, however, send you an earnings report by mid-February, 2020.