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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.
Never have I seen such misinformation. Take a deep breath and read the link again. It is funny how out of staters are such experts.
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You will pay taxes rental property.
As an individual owner, I have never paid TN taxes on rental income. I understand taxes are required on income from LLCs.
golfing duo, I am impressed that you are both still able to golf if one of you is legally blind or a quadriplegic. That doesn't apply to the vast majority of retirees and you know that. It feels like you are mansplaining about something that is irrelevant to most of us. Please stop.
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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?
Do I have to spell it out for you? $50K SS - no TN tax. $25K SS & $25K dividends, the tax is $1425 (6%of $23750). $10K SS and $25K dividends, no TN tax . This is for single filers.
The total PP is $28 because we are a poor state and very few have $40-100K in the stock market (outside retirement accounts).
Dave, do you receive more than $1250 in dividends?
Is your expected retirement income more than $37K from all sources?
If the answer to both is yes, my advice is to quit hoping and look at reality.
Call a TN accountant if need be, preferrably after April 15th. We do have to file federal taxes :-).
I am going to go at this again. That tax the Hall tax is only and I repeat only on dividend income and other sources not to include all the earned income. Maybe I should have used this line but I wanted to point out something that you seem to want to ignore.
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This tax does not apply to the first $1,250 of income reported on each individual return or the first $2,500 of joint income reported on a jointly filed return. - See more at: https://www.tn.gov/revenue/article/h....tQ6N3CSr.dpuf
The line that is missing from there is the line you choose to ignore. "When taxable interest and dividend income". That line is what the Hall tax is. You are right I am an out of state person. I can tell you though you are the one that added in rental income and because you mentioned it there is an explanation for that. Rental income is not earned income. Does that makes sense? You do not get taxed on "EARNED INCOME". Retirement income is EARNED INCOME. SS is EARNED INCOME. TN residents pay federal taxes on all of that EARNED INCOME. They do not pay taxes on that. Only on "UNEARNED INCOME" such as dividends from investments.
...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.
As someone who owns a lot of municipal bonds - I think diversification is important. Although I own some Tennessee GOs - no way I would want to invest 100% of my portfolio there (or any other state for that matter).
I don't think anyone in the 1% - or even in the 5% - is interested in retiring in Tennessee (or establishing a tax residence there). Only reason people who are retiring look at it is because of the low COL. Robyn
P.S. Like I said - ain't got no dog in this fight.
I was speaking of the senior exemption. Prior to age 65 its pretty simple, you get a $1250 exemption per person.
It's the exemptions for over 65 that don't follow the usual rules. As for rental income classification, you are referring to federal taxes, not TN taxes.
I was speaking of the senior exemption. Prior to age 65 its pretty simple, you get a $1250 exemption per person.
It's the exemptions for over 65 that don't follow the usual rules. As for rental income classification, you are referring to federal taxes, not TN taxes.
I don't want to argue anymore. You win. No Mas. I cannot convince a TN resident that he doesn't pay TN income tax. Continue to pay your Hall Tax.
I don't think anyone in the 1% - or even in the 5% - is interested in retiring in Tennessee (or establishing a tax residence there). Only reason people who are retiring look at it is because of the low COL. Robyn
P.S. Like I said - ain't got no dog in this fight.
We are planning on moving to Tennessee for retirement for the weather, the people and the terrain (as well as the lower cost of living). I will gladly cede Florida to the wealthy 5% retirees and be very happy if they don't show up in Tennessee along with me.
We are planning on moving to Tennessee for retirement for the weather, the people and the terrain (as well as the lower cost of living). I will gladly cede Florida to the wealthy 5% retirees and be very happy if they don't show up in Tennessee along with me.
Do you think Orlando (where you seem to live) has a lower COL than all of Tennessee? Doesn't seem that way to me:
As someone who owns a lot of municipal bonds - I think diversification is important. Although I own some Tennessee GOs - no way I would want to invest 100% of my portfolio there (or any other state for that matter).
I don't think anyone in the 1% - or even in the 5% - is interested in retiring in Tennessee (or establishing a tax residence there). Only reason people who are retiring look at it is because of the low COL. Robyn
P.S. Like I said - ain't got no dog in this fight.
Not everyone retiring to TN is doing so just because of the cost of living. If that was the case, there are areas of the Midwest quite a bit cheaper than most of Tennessee, but those places aren't attracting retirees to the same extent because they aren't as mild, and don't have the natural beauty that TN does. Eastern TN has excellent lakes and rivers for hiking/boating/fishing/hunting, and excellent outdoor activities for most of the year. There are frequently posts on the TN forum from retirees looking for mountain/river views, a lake house, etc. A lot of folks from up north think TN is all like Gatlinburg, which is far from the truth, and want a piece of some of "pioneer lifestyle," for lack of a better term. Taxes usually aren't at the top of the list.
It's a tough place to make a living, but if you're bringing in money from some rich and prestigious area, your quality of life in TN can be high.
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Originally Posted by Robyn55
Do you think Orlando (where you seem to live) has a lower COL than all of Tennessee? Doesn't seem that way to me:
I think it's pretty hard to generalize about states as a whole when it comes to the COL. Robyn
I would say that Orlando is going to be considerably more expensive overall than most anywhere in TN, aside from the Nashville city limits and Williamson County. Orlando is going to have much, much more expensive insurance costs than anywhere in TN, property prices are generally higher and rising faster, etc.
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