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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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6 Comments 6
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♥¸¸.•*¨*•♫♪
PATAX
Level 15

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 

PATAX
Level 15

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

dd4vols
Level 10
Level 10

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.