Senior citizens' exemption level raised for Tennessee's Hall income tax
Thursday, May 30, 2013
From Kraft CPA's
Tennessee Gov. Bill Haslam held a ceremonial bill signing in Crossville on Tuesday, raising the exemption level for senior citizens who are subject to Tennessee’s Hall income tax.
The bill, HB 192/SB 198, raises the exemption level of the tax to single filers 65 years old with an income of less than $33,000 and to joint filers with at least one spouse at least 65 years old with an income of less than $59,000.
Previously, single filers at least 65 years old with an income of less than $26,200 and joint filers with at least one spouse at least 65 years old with an income of less than $37,000 were exempt from the Hall Income tax.
The Hall Tax, enacted in 1929, is a tax imposed on individuals and other entities receiving interest from bonds, notes and stock dividends. Seniors are more likely to own stocks that pay dividends than other demographic groups, and many retirees rely on stock dividends for their income. In 2011, Governor Haslam and the General Assembly raised the Hall Tax exemption level. This legislation increases the exemption level again and further reduces the tax burden on seniors.
The new legislation is effective Jan. 1, 2013.
If you have any questions, please contact KraftCPAs Chief Manager, Vic Alexander, at 615-242-7351.