Do I need to file a tax return for my Airbnb in Tennessee if I live in California?

Leslie321
Level 2
Lafayette, CA

Do I need to file a tax return for my Airbnb in Tennessee if I live in California?

We live in California and own a house in Tennessee that we rent out on Airbnb. This is the first year we will report income on our tax returns. I know that Airbnb collects and remits occupancy taxes on our behalf, which I understood fulfilled my obligation as far as TN taxes go. But after entering the property in TurboTax, TT is prompting me to download and file a state tax return for Tennessee in addition to my California return. There must be many others in the same situation as far as an out-of-state Airbnb. Can anyone advise? Thanks.

2 Replies 2
Ben-and-Sam0
Level 3
Chicago, IL

Leslie, TurboTax is most likely generating a TN state tax return because it thinks you owe state income tax in TN on your rental income. This is a separate issue from occupancy or hotel taxes levied by states.

A quick google yields this, which would seem to indicate that your rental income would not be taxable in TN:
https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/nonresident-of-tn-own...

 

I recommend consulting a CPA to be sure.

Kelly149
Level 10
Austin, TX

@Leslie321  I think you’ll need specific advice from a tax professional. 
for example, some states require income tax be paid on all income earned in that state regardless of your residency

More tools to help you meet your goals

Resource Center

Explore guides for hospitality, managing your listing, and growing your business.