I entered my non dividend distribution from box 3 correctly into Turbo Tax in 2018, 2019 and 2020 and they incorrectly added it to my ordinary dividends and capital gains ( all entered separately in TT and all were reported in the correct boxes on my 1099) and told me I had to pay state taxes on it in TN. They correctly only included the ordinary dividends and capital gains on my federal return. . I had no idea non dividend income was not taxable in TN and I overpaid state taxes dearly for the past three years. I only figured it out this year when I used TT and it said I had no state income tax due. I found out that was due to the repeal of the Hall Act but as I understand it, Hall did not require taxes on non dividend distributions- only ordinary dividends and capital gains. Now I have to find someone who can file an amended return for those years and get it back. I will never use TT again!
