I have two questions actually. I moved to Tennessee in May of 2021. I am the beneficiary of a TN irrevocable trust. Does the trust have to file a Hall tax return for 2020. The trust had dividend and interest income have to file a Hall tax return in TN

[JotikaT2]

It depends.

The Hall income tax is only imposed if your interest and dividend income exceeds $1,250.  This threshold applies to all entities.  Therefore, if the trust has income that exceeds these amounts, then yes, you will need to file a tax return in Tennessee for the Hall Income Tax.

Hall Income Tax

[demitx475 · Accepted solution]

Would that be for the whole year or just for the months that we lived in TN?

[JotikaT2 · Accepted solution]

Since I am assuming the trust is based out of Tennessee, it would be for the entire year, unless the trust was formed in 2020.  Then you would only report the interest and dividends from the formation of the trust to the end of the year.

In regards to your personal return, if the trust is not reporting the interest and dividends and it is being passed on to the beneficiaries to report, then you would only report it from the date you moved to Tennessee.  The filing threshold will also be higher if you are filing as married filing jointly.

Hall income tax filing threshold for individuals