By Ryan Bowman

Most Tennessee residents and part-year residents are exempt from the Hall Income Tax because the taxable portion of certain interest and dividend income is below the exemption level. The exemption level for the taxable portion of interest and dividend income is $1,250 for individuals and $2,500 for married filing jointly. Filers 65 years old and over have an additional exemption.

Beginning January 1, 2013, any person 65 years or older with total income from any and all sources of less than $33,000 for single filers and joint filers with total income from any and all sources of less than $59,000 are exempt from the Hall Income Tax.  This exemption has increased from $26,200 for single filers and $37,000 for joint filers for 2012.

Total income from any and all sources means all income, including social security income, regardless of whether it’s taxable for federal purposes and without deduction for loss.  If total income from any and all sources exceeds the exemption levels for persons over 65 and the taxable portion of interest and dividend income is still under the $1,250 single or $2,500 married filing joint exemption, taxpayers remain exempt from the Hall Income Tax.