F&E Credit-5 - The Excise Tax Credit for an Entity that is Subject to the Hall Income Tax

The Tennessee Individual Income Tax (Hall tax) is computed on the dividend and interest income of individuals and partnerships. A partnership that is subject to this tax may claim an amount equal to the tax paid on form FAE170 Schedule D as a credit against the excise tax.  A Subchapter S Corporation should never claim this credit because this type of entity is not subject to the Hall tax.

The Hall tax is 0% for tax years beginning on or after January 1, 2021.

Reference: Tenn. Code Ann. §§ 67-2-102; 67-4-2009(7).

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