My state of tn. has a state income tax for seniors. You must be at least 65 before you pay income tax. Is this

Question

This has to be descrimination. The federal gov. does not tax my ss but tn. counts income from ALL sources. My gross income amount with federal gov. would exclude me from state income tax but I have to count social security. I yhink this would be a great class action lawsuit, anyone agree?

Answer 1

The individual income tax is imposed only on individuals and other entities receiving interest from bonds and notes and dividends from stock.

Enacted in 1929, this tax was originally called the Hall income tax for the senator who sponsored the legislation. The law can be found in Tennessee Code Annotated in Title 67, Chapter 2.

Exemptions:
The first $1,250 in taxable income received by a single filer is exempt. The first $2,500 in taxable income received by a joint filer is exempt.

Persons over 65 with total income less than $16,200 for a single filer or $27,000 for a joint filer are exempt.

DUE DATE
Annual – April 15

TAX RATE
6% of taxable income

CONTACT PHONE NUMBERS
Individual Income Tax Audit Staff:
[phone]
Statewide toll-free: [phone]

I think you were given bad information. You are exempt....

good luck & bless

Answer 2

No, the fact that one entity does NOT tax a certain class of income doesn't prevent another government entity from taxing it.

If income tax was only on income if you're over 65, then yes, that would be discrimination. But if it's EVERYBODY, on ALL their income - how is that discrimination? Just because you don't get special breaks isn't cause to claim discrimination.

That said - according to the TN website, "12. What about pension income, Social Security, 401(k) and IRA distributions?

As the Tennessee income tax does not apply to salaries and wages, items of income such as Social Security and pension income are not subject to state tax. Tenn. Code Ann. Section 67-2-104(m) provides that income from stocks and bonds of pension trusts and profit-sharing trusts which are exempt from federal income taxation shall be exempt from the state income tax. This includes such accounts as IRA and 401(k) accounts. Distributions from IRAs and 401(k) plans are also exempt." This is from the webpage http://tennessee.gov/revenue/faqs/indincome.htm#hall12, part of the state website. Possibly your information is wrong?

Answer 3

Wood smoke gave a good link. The tax is levied on interest and dividends regardless of age. The one thing that you have going for you is if your overall income is below $16,200 or $27,000 and you are 65 or older you are exempt for the Hall tax regardless if all the money up to the exemption is interest.

Check out the link for more information or email me for questions.

Answer 4

sure, I agree we pay too plenty in taxes. yet think of roughly what does not gets a commission if there wasn't a wide-unfold tax value: - police, fireplace, and emergency amenities - training - the militia and protection - scientific progression and analyze as quickly as there is no funds to return in to start up identifying to purchase those issues, human beings could be complaining that the amenities are not offered! the ingredient to undergo in recommendations is that the federal government isn't an entity to itself. that could be a element of united states of america such as you and that i. that is created from those that are our fellow voters and run with funds from all of our not straightforward artwork. that's *not* a difficulty the place the damaging peasants are working to help the feudal lord and that they are annoying further and further. each bit which you put in, you will get some thing back in return.