Question

TN Hall Tax: Do I owe TN taxes on dividends?

Forum|Forum|5 years ago
May 2, 2021
2 replies
0 views

I am a TN resident, filing taxes under the "Married - Joint filing" option and my yearly dividends is less than $2500. However, turbo tax "Premier" is showing me that I owe $1 tax for TN state.

Is that incorrect calculation, as I read that the threshold for 2020 TN hall tax was $2500 under married joint filing option.

Some guidance will be highly appreciated.

TurboTax Premier Online

E

ErnieS0

The exemption amount is $2,500 for the Hall Tax for married filing joint. Capital gains distributions are also taxable. Do you have any?

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S

SweetieJean

Employee

@ErnieS0 I thought it was just on interest from bonds and notes, and dividends from stock. Do you have a cite for it applying it to capital gains?

E

ErnieS0

@SweettisJean 2020 Guidance for Tennessee’s Hall Income Tax Return:

Income from investment trusts and mutual funds, including capital gain distributions and distributions designated as “nontaxable” under federal income tax law, whether in cash or additional stock, is taxable. The portion of income derived from bonds of the U.S. government and its agencies or bonds of the state of Tennessee and its counties and municipalities are exempt.

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