TN part year resident dividend / interest question

Hi, I assume that I do not need to pay tax on interest and dividends received while not a resident of TN. How do I account for that on my state return? The only field I see is "adjustments".
GeoffreyG
New Member

State tax filing

You are correct that you do not have to pay Tennessee state income taxes (Hall Tax), on your interest and dividend income, that was received during the portion of the year you were a nonresident of Tennessee.

In order to correctly calculate your Tennessee Hall Tax return, however, you will need to make some manual calculations, and then enter an "adjustment" to your Tennessee interest and dividend income.

We detail how to do that for another part-year Tennessee resident, in a more complete explanation, at the following clickable link:

https://ttlc.intuit.com/questions/3787652


Thank you for asking this important question.

State tax filing

The link shown in the answer to this question does not work.  Can you provide another method for accessing the information?

AmyC
Expert Alumni

State tax filing

As you go through TN, it says Confirm This Dividend Income is Nontaxable

Is this ALL nontaxable? Mark No

Enter any adjustments:: See below

 

 

Determine the TN adjustment:

 

TN income divided by total income = x%. Multiply x% times your interest. That is your TN interest. Subtract that from the total and enter that difference as the adjustment.

 

Example: Earned $50,000 in TN divide by total income earned everywhere  $500,000 = 10% 

Take the 10% times total interest of say $30,000 = 0.1 x 30,000 is $3,000 TN income.

This makes the adjustment $30,000-$3,000 = $27,000 adjustment

 

 

Here is the TN  return with instructions. 

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