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Does my client need to file TN state tax return? (He lives in IL but got a w-2 form from a remote job in TN.)\

RitaKoala
Level 2

My client lives in IL and work remotely for a company in TN in 2020. He got W-2 from TN with state income tax on it. Does he need to file a TN tax return?

 

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Just-Lisa-Now-
Level 15
Level 15
No state income tax in TN. He files in IL as an IL resident.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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RitaKoala
Level 2

I wrote it wrong. The company is located in TN, but the state income tax on his W-2 is for IL.

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Just-Lisa-Now-
Level 15
Level 15
No state income tax in TN. He files in IL as an IL resident.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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PATAX
Level 9

Lisa you beat me by 30 seconds on that one...👍

PATAX
Level 9

If his residence for the whole year was Illinois, and only Illinois state income tax was withheld on the W-2 , IE no Tennessee withholding and no Tennessee wages on the W-2 , then I do not see why you would have to file a Tennessee return... It doesn't matter what state the employer is headquartered in... Just my opinion... Hope this helps 

dd4vols
Level 9

we have what is called the Hall Income tax......which is a tax  on certain non-bank interest, and most dividends,  and capital gains distributions from  mutual funds  There is NO state income tax on earned income (w2s, guaranteed payments, self-employment earnings, etc). This has been in effect since 1929. was 6% forever, but the legislature enacted a 1% annual reduction in the tax rate, til it goes away... which is 2021.  this is the last year of it...1%.

if you see a w2. with TN Income tax withheld....then something very fi$hy with that employer accounting $y$tem.

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RitaKoala
Level 2

Thank you guys~ All answers are helpful for me.