I am a student in SC but my residence is TN. Why is not letting me complete my returns without doing tennessee but tennessee doesn't have state taxes?

[ojgreeley]

It is giving me a "Important: Complete your nonresident return(s) first." but when I click it, it tells me the forms are not there. TN doesn't have state taxes so that is why it isn't there. I did not have this issue last year. How do I get past this?

[MaryK4]

Can you clarify if you see the screen below or if possible, provide a screen shot.  Thanks! @ojgreeley

[ojgreeley]

That is exactly what I see when I click it. This did not show last year.

[MaryK4]

Click on Continue without State and you will be able to move on.  Tennessee taxes investment dividends and interest, but if you do not have to file a return, you can just continue.  @ojgreeley

[SteamTrain]

@MaryK4 

TTX really REALLY needs to correct/remove that screen.

The Dividend and Interest "Hall" tax for TN residents was entirely eliminated for the entire 2021 tax year and the years into the future.  And TTX knew this more than a full year ago.

Thus, there will be no TN tax forms anymore!

[ojgreeley]

I have tried that but it goes back to the screen and says I need to fill it out. I have tried to delete it but it won’t let me. It’s like there is a glitch where I cannot bypass it.

[ojgreeley]

Is there a human I can speak to over the phone about this issue or do I have to pay to speak with a human about an error that seems to be coming from TurboTax? I am not sure if there is something I am missing and think this would best be solved by speaking with someone on the phone to explain the situation.

[TeresaM]

Just to clarify, we would like to take a deeper look at this. You are correct, the Hall tax was repealed effective Jan 1, 2021, so there is no need to file that form.  It would help to have a diagnostic file, which is a sanitized copy of your tax return that has all of your personal information removed but has all of the forms and numbers entered. You can send one to us by following the directions below and posting the token number here so we can access the sanitized return.

 TurboTax Online:

1. Sign in to your online account
2. Click on Tax Tools on the left toolbar
3. Select Tools
4. In the pop-up screen, click on "Share my file with agent"
5. Click OK on the message that a diagnostic file will be sanitized and transmitted to us
6. Please post the Token Number

TurboTax Desktop/Download Versions:

1. Open your return
2. Click the Online tab in the top menu bar
3. Select "Send Tax File to Agent"
4. Click Send on the message, and the tax file will be sanitized and transmitted to us
5. Please post the Token Number

If you would like to call on the phone, this TurboTax Help article directs how to call. How to call TurboTax

[ojgreeley]

Token Number 956663

[TeresaM]

You are correct, you can be a resident of Tennessee if that is your permanent address and you are away at school. There is no Tennessee individual state income tax required, due to the repeal of The Hall Act.

However, if you are married filing jointly, and your spouse is a resident of South Carolina, then according to the South Carolina requirements, you will file a non resident return, where your spouse can claim South Carolina income. This may be why there is a message about preparing the non-resident state return.

If you file a joint federal return, you must file a joint South Carolina return SC1040 with  Schedule NR. The resident spouse will report to South Carolina all income for the entire year. The spouse who is not a resident on the joint return will only report income earned in this state, if any.

If you file separate federal returns, you must file a separate South Carolina return. Your spouse must also file a separate South Carolina return if he/she has income taxable by South Carolina.

South Carolina Filing Requirements