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New Member
posted Feb 8, 2021 10:00:17 AM

do i need to file state taxes in Tennessee

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3 Replies
Level 15
Feb 8, 2021 10:11:22 AM

TENNESSEE    TN does not have a personal income tax.  It has a flat rate “Hall Tax” on interest and dividends.

Level 15
Feb 8, 2021 10:11:49 AM

Tennessee only taxes interest and dividend income that exceeds $1,250 ($2,500 if married filing jointly).

 

There is no return to file unless you had interest and dividend income exceeding those amounts.  

Expert Alumni
Feb 8, 2021 10:28:07 AM

Probably not - Tennessee does not have a state income tax on wages (or most other income such as  pensions, investment gains, etc.) but they do have a flat tax that applies to income earned from interest and dividends.

 

This tax does not apply to the first $1,250 of income reported on each individual return or the first $2,500 of joint income reported on a jointly filed return. Any person 65 years of age or older having a total annual income below specific limits is completely exempt from the tax. 

 

See Exemptions and Deductions  for the income limits

 

If you are subject to this tax, the necessary form is available through  the TN state tax interview in TurboTax,