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Level 1
February 27, 2021
Question

State Tax Form

  • February 27, 2021
  • 1 reply
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I submitted my taxes in January. It kept prompting me to apply for state taxes eventhough the instructions started with "It looks like you do not need to submit state taxes" (loose wording). So, my return says it was accepted, but I'm still getting the notification and suggestion to file Tennessee State Tax. It says something about dividends and interest- I'm not for sure if I qualify for that-, but when I clicked the more info link it sent me to turbotax home webpage. I want to prevent assuming it was submitted and accepted when, in reality, it was never sent and I get audited or something; All because I, unknowingly, didn't file a required state tax. 2/272021 Tennessee 

    1 reply

    Employee Tax Expert
    February 27, 2021

    Tennessee only taxes interest and dividend income as part of their Hall income tax.

     

    The Hall tax would apply if you have interest and dividend income that exceeds $1,250 or $2,500 if you are filing jointly.

     

    Please see the attached link for more information.

     

    States without income tax for individuals

     

    If your Tennessee interest and dividend income exceeds the amounts above, you would still need to file a return in Tennessee.  If it does not, you will not have a filing requirement in TN.

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    Level 2
    April 4, 2022

    I understand that Tennessee doesn't have a state income tax, however, one's dividends and interest are taxed. Turbotax sent me an automated email to finish filing my Tennessee Income Tax. It's a mystery how one can return to the State Filing Section of Turbotax to do this. It's only a couple of "Continue" from being completed.  I've worked over eight (8) hours trying to return to the State Income but it only returns me to the completed and filed Federal Income Data.   

    Level 15
    April 5, 2022

    Tennessee does not have a state income tax at all beginning with the tax year 2021. You cannot file a tax return for Tennessee starting in 2021.

     

    @Bill40Gandy 

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