Everything You Need To Know About Tennessee State Income Tax In 2023
If you’re a resident of Tennessee, then you’re probably aware that you have to pay taxes on any income you make. That’s why it’s important to understand the Tennessee state income tax laws so that you can make sure you’re paying the right amount of taxes on your income. In this article, we’ll be taking a look at the Tennessee state income tax laws in 2023, so you can make sure that you’re up-to-date on how much you’ll owe this tax year.
Tennessee State Tax Rates in 2023
In 2023, Tennessee is going to have a flat tax rate, which means that everyone who makes a certain amount of income will pay the same percentage of their income in taxes. The state income tax rate in Tennessee is currently 5.00%, so if you make more than $12,000 in 2023, you’ll be required to pay 5% of your income in state taxes. This rate has not changed since 2019, when it was lowered from 5.25%.
Deductions and Credits
Tennessee does offer several deductions and credits for residents who make less than $12,000 in income. For instance, if you make less than $4,000 in income, you may be eligible for a deduction of up to $2,000. In addition, there are several other deductions and credits available, including a sales tax deduction, a foreign earned income credit, and a dependent care credit. Be sure to check with the Tennessee Department of Revenue to see what deductions and credits you may be eligible for.
Filing Taxes in Tennessee
When it comes to filing taxes in Tennessee, you have several options. You can either file your taxes online using the state’s website, or you can file a paper return through the mail. The deadline for filing taxes in Tennessee is April 15th of each year. If you need an extension, you can file for one by filing an extension form with the Tennessee Department of Revenue.
Paying Taxes in Tennessee
Once you’ve completed your taxes and filed them, you’ll need to make sure that you pay your taxes on time. You can pay your taxes online, by mail, or in person at a local office of the Tennessee Department of Revenue. You can also set up an installment plan through the department if you can’t pay your taxes in full. Be sure to pay your taxes on time, as the state has penalties for late payments.
Tax Exemptions in Tennessee
In Tennessee, certain types of income are exempt from state taxes, including Social Security and Veteran’s benefits. In addition, certain types of income, such as retirement income and interest on certain types of bonds, are exempt from state taxes. Be sure to check with the Tennessee Department of Revenue to see if you are eligible for any tax exemptions.
Audits in Tennessee
The Tennessee Department of Revenue does conduct audits of residents’ tax returns. If you are chosen for an audit, you’ll need to provide the department with documentation to prove that the information on your tax return is accurate. Be sure to keep all of your documents and receipts in case you are chosen for an audit.
Conclusion
Tennessee state income tax laws can be complicated, but it’s important to understand them so that you can make sure you’re paying the right amount of taxes on your income. In this article, we’ve taken a look at the Tennessee state income tax laws in 2023, so you can make sure you’re up-to-date on how much you’ll owe this tax year. Be sure to check with the Tennessee Department of Revenue if you have any questions about taxes.