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** NOTE: There are nine states that do not levy any tax on earned income: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
CAUTION: Some of the nine states listed above may in fact tax other sources of income (i.e. tax on interest and dividends, real or personal property taxes, etc.) outside of earned income on W-2 salaries and wages. Consequently, clients from any of these nine states should consult their respective State Department of Revenue with the resources listed above to confirm whether they have any state individual tax filing requirements for other sources of income or property that may be taxed.
Eligible clients can schedule an appointment and consult one of our tax preparers for additional guidance on these issues.
FOR EXAMPLE: Tennessee income tax does not apply to salaries and wages, and items of income such as social security and pension income. However, Tennessee taxes income from Interest and Dividends exceeding the first $1,250 ($2,500 on a joint return), unless such income from interest or dividends meets other criteria to be exempt (i.e. the individuals are sixty-five (65) years old or older with total annual income of $16,200 or less ($27,000 for joint filers), or are blind persons who may be exempt upon filing a statement from their eye specialist).
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