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TN Part Year Resident

Michael1896
Level 2

How do you enter the income earned in TN for a part year resident?

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dd4vols
Level 9

in the State Inc Tax program... on the Forms in use toolbar>>Div/Int Wks>>>There is a  column "Adjustments".. click on that, put your explanation (Non-Tennessee dividends, and the amount you are excluding)....and you should be good to go!

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8 Replies 8
dkh
Level 11

Enter taxpayer part year resident dates at bottom of Federal Information Worksheet Part XI then use the Quickzoom Part Year Resident State Allocation Worksheet   

 

 

Michael1896
Level 2

That is what I did, but the entire amount shows on the TN return, not just the part earned while in TN.

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dkh
Level 11

In Part XI of Federal Information Worskheet you entered state of residency as of 12/31 and checked the box Part Year Resident and completed date residence established and former state and verified table is complete and accurate.    And checked the Part Year Resident Allocation Worksheet

dd4vols
Level 9

Tennessee has NO regular income tax on earned income.  We have the Hall Income Tax (this is the last year,,the legislature  has done away with it.)  Commercial paper interest and other non-bank interests are one of the things taxed, Bank Interest, municipal bond interest, etc are not taxable.  Passthru earnings from mutual funds (dividends, cap gains, non-dividend distributions) are a component of 'taxable' items.

W2 earnings, capital gains, rent incomes, schedule C earnings, etc.... are not taxable items.

Even single-member LLCs are not taxed on earnings....not sure where you are saying it 'all shows up' on the Tennessee return?

You talking about indivudual income tax, or Tennessee Franchise & Excise Tax?/

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Michael1896
Level 2

I am referring to the Halls Tax on individuals.  ProSeries says TN taxes the total dividends for the year, not just the amount earned while living in TN.  Is that correct?

 

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dkh
Level 11

I don't know the answer but need to ask.....did you allocate in the Part Year Resident Allocation Worksheet the amount earned while in TN  and PS stills taxes 100% ???

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dd4vols
Level 9

in the State Inc Tax program... on the Forms in use toolbar>>Div/Int Wks>>>There is a  column "Adjustments".. click on that, put your explanation (Non-Tennessee dividends, and the amount you are excluding)....and you should be good to go!

If an answer solves your issue, click on the "Accept as Solution" button! Makes it easier for people to find answers to similar questions that have already been posed.

View solution in original post

Michael1896
Level 2

Thanks.  This was a good solution.  It still did not put the out of State income on Schedule B as non-taxable, so I had to enter that manually.  The information from Pro-Series help desk was just incorrect.  Thank you so much.