3 Things You Need To Know About Tennessee Tax Law
There are a lot of advantages to living and working in Tennessee. Most people have a limited understanding of Tennessee tax law, and overlook some of the financial perks of being a resident of this great state.
Tennessee is a retirement-friendly state
People love to retire in Tennessee. There isn’t a standard income tax here, and residents won’t pay state tax on their Social Security retirement benefits or income earned from retirement accounts.
When you live in Tennessee, you won’t pay standard income tax
There are only nine states that won’t take a chunk of residents’ paychecks as standard income tax in 2018.
- South Dakota
- New Hampshire
According to The American Legislative Exchange Council, states that don’t impose personal income tax have more reliable population growth. They also consistently outperformed states with the highest personal income tax rates in job creation. Tennessee is so committed to protecting the future financial stability of its residents that they voted to permanently abolish individual income taxes by changing the language in the Tennessee constitution in 2014.
If you owe back taxes in Tennessee, it’s easy to find help
Even though you won’t have to worry about paying individual income taxes here in Tennessee, you may have problems with the IRS if you don’t file your taxes on time or pay the full amount due to the federal government. Most people who end up in trouble with the IRS aren’t criminals. They simply did not have a solid understanding of federal tax law.
Owing back taxes can be scary. You have options, but it can be hard to understand which course of action would be best for your situation. Contact a qualified Tennessee tax law attorney if:
- You need to discuss your situation with a professional that can’t be made to testify against you, and while your CPA may be able to help, the information they have is fair game in court
- You need help with an IRS audit from a professional that can assist you in negotiating a settlement
- You have questions and concerns about tax evasion or tax fraud
With the right tax attorney on your side, your tax problems in Tennessee will be a memory in no time.