I need a little help out there - I have a TN resident client who I have always filed taxes for (I'm in NY.). She paid tax on her dividends. When I went to prepare her return this year, the software is saying none of it is taxable. A little internet search brought up that the Hall Tax was repealed - is that correct? Looking at the TN tax website, I can't seem to confirm it, in fact, they have forms for 2016 to prepare the return. So - what's the verdict in TN - file a return or not? I appreciate any guidance.
-
-
TN Dept of Revenue answer
This might help things:
FE -
Dies a Slow Death
Hi Krav - and greetings to the land of low zip codes.
I am entrenched in Tennessee and watched with ardent fervor as the state legislature wrestled with the Hall Tax. I have known a few legislators and most of them have wanted to get rid of it for years, except there was no replacement for the $300M it brought in.
As it turned out, the Hall Tax is going to die, but it will be a slow death. Historically the tax rate has been 6%, but the rate will be reduced by 1% per year for the next 5 years until it is totally repealed in 2021. Your client should be paying 5% on his dividends in 2016.
Regards from the state that adorns its head in the grandeur of the Great Smoky Mountains, and washes its hallowed feet in the waters of Ol' Man River...Comment
-
Thank you very much for clarifying that for me - I just don't understand why Proseries won't even calculate the return. Haven't had a problem in previous years....Comment
Comment