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Old 03-22-2016, 06:06 AM
 
Location: Central Massachusetts
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Quote:
Originally Posted by DaveinMtAiry View Post
We got a bit sidetracked with the discussion moving to other taxes. So I guess I'll ask this question again. Does SS count towards the $59,000 limit for couples?


In answer to your question and I had to look back to see where it originated Dave, no that income is not counted. This hall tax is only on more or less inherited estates of about $1 million that generate a taxable income through dividends.
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Old 03-22-2016, 08:06 AM
 
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When you consider the audience of the WSJ, you can see why they consider this newsworthy. TN has the reputation for no income tax because for 95% of the population there is no income tax.

There are plenty of exemptions, such as interest from national or state chartered banks, US bonds, and most importantly TN municipal bonds.

I think the tax should remain. My guess is some 1%ers heard Nashville is a fun town and are whining because they can't live here tax free.

I think SS does apply to the 59K limit.

Quote:
This hall tax is only on more or less inherited estates of about $1 million that generate a taxable income through dividends
Anyone who has significant dividends will pay, inherited or not. Assuming a 2.5% average dividend, a non senior individual would be looking at a 50,000 portfolio of dividend stocks before they owed taxes. Still a small price to pay for living in the great state of TN.
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Old 03-22-2016, 08:19 AM
 
Location: Central Massachusetts
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Quote:
* Tax rates to do not include local option tax of 1 cent.TENNESSEE

Sales Taxes

State Sales Tax: 7% on tangible property (prescription drugs exempt); 6% on food and food ingredients. Counties and cities may add another 1.5% to 2.75% to the total of either rate (click here).
Gasoline Tax: 39.8 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 42.8 cents/gallon (Includes all taxes)
Cigarette Tax: 62 cents/pack of 20; 77.5 cents/pack of 25
Personal Income Taxes

Salaries, wages, Social Security, IRAs and pension income are not taxed. A 6% tax is levied on stock dividends and interest from bonds and other obligations. The first $1,250 in taxable income received by a single filer is exempt ($2,500 for joint filers). For details, click here.
Retirement Income Taxes: Beginning with tax year 2012, the annual Hall Income Tax standard income exemptions for taxpayers 65 years of age or older increases from $16,200 to $26,200 for single filers and from $27,000 to $37,000 for joint filers.


Widgets Magazine


Sorry to have to say this once again. That hall tax does not include the following taxes: Salaries, wages, SS IRA's Pensions. It is levied on stock dividends and interest from bonds or other obligations (mutual funds). Please see the widget link above. TN does not tax income. They have a sales tax that some consider high but in light of other things it is low.
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Old 03-22-2016, 09:47 AM
 
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The thing that is confusing is that residents are exempt from the Hall tax if their total income is below 37K/59K. one penny over and the total tax is due, minus the small exemption available for everyone.


That's the one thing I hate about the Hall tax, it is not phased in like federal income taxes.


95% certain SS is included in the total. I know rental income is. You don't pay Hall tax on rental income unless property is held in a corporation. Ditto for wages. No direct hall tax but it is applied towards the 37K/59K limit for seniors.

Still, you can live pretty well in TN on 37K/59K, especially if you have a paid for house.
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Old 03-22-2016, 09:53 AM
 
Location: Central Massachusetts
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Quote:
Originally Posted by creeksitter View Post
The thing that is confusing is that residents are exempt from the Hall tax if their total income is below 37K/59K. one penny over and the total tax is due, minus the small exemption available for everyone.


That's the one thing I hate about the Hall tax, it is not phased in like federal income taxes.


95% certain SS is included in the total. I know rental income is.

Still, you can live pretty well in TN on 37K/59K, especially if you have a paid for house.


You are right but rental income is not Wages, Salaries, 401k, IRA, Pension or Social Security. Tennessee does not tax income. Rental income is not earned income nor is it retirement income. It is investment income.
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Old 03-22-2016, 10:16 AM
 
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https://www.tn.gov/revenue/article/h...and-deductions
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Old 03-22-2016, 10:19 AM
 
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From the website:

Quote:
Any person 65 years of age or older having a total annual income below specific limits is completely exempt from the tax. Total annual income means income from any and all sources, including social security.
https://www.tn.gov/revenue/article/h...and-deductions
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Old 03-22-2016, 11:11 AM
 
Location: Central Massachusetts
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Quote:
Originally Posted by creeksitter View Post


From your link here.


Quote:
Joint Filers: When taxable interest and dividend income is received jointly by a quadriplegic and a spouse who is not a quadriplegic, only one-half of the jointly received income will be exempt from the tax. If the quadriplegic person receives taxable interest and dividend income and files jointly with a spouse, a deduction of $2,500 may be claimed. If only the non-quadriplegic spouse receives taxable interest and dividend income, the non-exempt spouse may only claim a deduction of $1,250. - See more at: https://www.tn.gov/revenue/article/h....TJuZ9sxw.dpuf

And I only pulled the info from the joint filers. It is the same Please see the highlighted line. Income is not taxed in TN.
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Old 03-22-2016, 11:23 AM
 
Location: Central Massachusetts
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You will pay taxes on your savings accounts. You will pay taxes rental property. You will pay taxes on stocks, bonds and mutual funds. You will not pay taxes on Salaries, Wages, Tips, SS, IRA, 401k, Keogh, SEP-IRA, Pensions. There is no income tax in TN. It is a Hall tax. It was introduced into law by State Senator Frank S Hall in April 1929.


Quote:
The Hall income tax is a Tennessee state tax on interest and dividend income from investments. It is the only tax on personal income in Tennessee, which does not levy a general state income tax.


https://en.wikipedia.org/wiki/Hall_income_tax
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Old 03-22-2016, 11:29 AM
 
Location: Central Massachusetts
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www.taxfoundation.org


Quote:
Tennessee


The facts on Tennessee’s Tax Climate


Tennessee's Individual Income Tax System
Tennessee's personal income tax system consists of a flat rate of 6%, which applies to interest and dividend income only. That rate ranks 19th highest among states levying an individual income tax. Tennessee's income tax collections per person were $28 in 2012 which ranked 3rd lowest nationally.

The quote highlights that Tennessee collected a grand total of $28 per person in 2012. If they taxed SS do you not think that they would be getting a bit more per person?
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