Taxes withheld are wrong amount

Meghann7
Level 1
Mesa, AZ

Taxes withheld are wrong amount

I am completing my state tax return for the State of Arizona, as it relates to TPT (transaction privledge, use, and severance tax) and I noticed that Airbnb had been withholding at the incorrect rate, or was not withholding at all, as my current tax liability is in excess of what was paid to the state. Has anyone else encountered this? If so, how was this solved? Currently, I am on the hook for the tax bill and I would prefer not to pay hundreds of dollars for Airbnb's mistake.

 

Thank you

3 Replies 3

Yeah, this is a big complaint of mine. Basically Airbnb collects 6.1% (that's what they told me and I think it's a figure they pulled out of their butt). So you can either pay the difference out of your pocket or collect the additional taxes when your guest arrives. Besure to include that information in your information so your guest understands this. When I traveled in Europe, we always had to pay taxes in cash to the hosts.|

This is what Airbnb sent to me in January:

 
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Danielle591
Level 1
Arizona, United States

Is there any kind of reporting that they are supposed to send to us in regards to the tax collected and remitted on our behalf? I am finding that they are incorrectly calculating my taxes as well and want to be sure i have documentation. After a very long time going back and forth with customer service about how they are getting the numbers they are getting i was able to figure it out(again they could not tell me how they arrived at the numbers they did for occupancy tax). They are applying the state tax then applying the county tax to JUST the amount of tax paid to state if that makes sense.  I also do not see any returns submitted on my behalf on the azdor website.

AZ Dept of Revenue said airbnb should fill out a Arizona Form 5018; however, Airbnb refuses and tells me they don't do that. smh So we only have the Earnings Report and Transaction History. No actual "proof" that airbnb sent them in.