State Tax Download

[Robotdriver]

Got to State Tax download (free download) for TN. Clicked on download, answered question about the amount of Interest/Dividend income clicked download but could not open State Tax return from TurboTax. "Start State Tax" keeps taking me back to download but now wants $40 to download. Wanted to see if there was anything different from last year but because my Interest/Dividend is below the threshold I technically won't owe or receive a refund. Been filing in previous years with the state as a matter of record, per the state tax department, even though I don't owe taxes. Is this new because of the lower threshold and elimination of the Interest/Dividend tax reporting requirement that should end this year?

[DoninGA]

Tennessee does not have a personal income tax.  The Hall tax was repealed effective for tax year 2021. 

[Robotdriver]

That's the year I meant. Since the Hall Tax has ended, what is the purpose of the Interest/Dividend question in TurboTax? Should TN be removed for State Tax in TurboTax as this seems to be the only reason for a TN return for personal income taxes? Is there some other reason for filing TN state tax?

[DoninGA]

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@Robotdriver wrote:

That's the year I meant. Since the Hall Tax has ended, what is the purpose of the Interest/Dividend question in TurboTax? Should TN be removed for State Tax in TurboTax as this seems to be the only reason for a TN return for personal income taxes? Is there some other reason for filing TN state tax?

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Interest/Dividends are taxable on a federal tax return.  There is no reason to file a Tennessee tax return.

When completing a Form 1099-INT the question asked in TurboTax is on the screen for Uncommon Situations where there is a checkbox for indicating state taxes were withheld.  On the screen for entering the state taxes withheld the dropdown does have Tennessee along with the other states which do not have state income taxes.  This could be a programming error.