Updated for 2025 (Filing 2024 Taxes)
Yes, income earned as a Turo host is absolutely taxable, both at the federal and Georgia state levels. The IRS considers Turo hosting a business activity, meaning you’ll need to report your earnings and expenses.
Federal Requirements: You’ll report your Turo income and expenses on Schedule C (Profit or Loss From Business), which is filed with your Form 1040. This schedule allows you to deduct all ordinary and necessary business expenses, ultimately determining your net profit or loss. Keep meticulous records of all income and expenses throughout the year.
Georgia Specific Rules: Georgia has a flat income tax rate of 5.49% for the 2024 tax year (filing in 2025). Your net profit from Schedule C will be added to your other income, and this total taxable income will be subject to the 5.49% rate. Georgia also allows for standard deductions, which can reduce your taxable income. You’ll file Form 500 to report your Georgia income tax.
As a Turo host, you’re entitled to deduct expenses that are “ordinary and necessary” for your business. Here are some key deductions:
Because you’re considered self-employed as a Turo host, you’re responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This combined tax is known as Self-Employment Tax and is currently 15.3% (12.4% for Social Security and 2.9% for Medicare) on earnings over $400.
You’ll calculate this tax on Schedule SE (Self-Employment Tax), which is also filed with your Form 1040. The good news is that you can deduct one-half of your self-employment tax from your adjusted gross income, which can lower your overall tax liability.
Navigating taxes as a Turo host can be complex. I strongly recommend keeping detailed records of all income and expenses throughout the year. Consider using accounting software designed for self-employed individuals. Don't hesitate to consult with a qualified tax professional (like myself!) to ensure you're taking all eligible deductions and complying with both federal and Georgia tax laws. Proper planning can save you significant money and stress during tax season.
Don't let the IRS take more than their fair share. Use the software built for Turo Hosts.
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