Fillable Form Inc 250 - Individual Income Tax Return (Page 4 of 4) in pdf

9. Dividends or interest from Federal National Mortgage Association, Government National Mortgage Association and Federal

Home Loan Mortgage Corporation.

10. Income credited to a limited partner’s capital account if the partner has a certificate evidencing transferable interest in the partnership

(usually a publicly-traded partnership).

*Legal domicile - Some items considered in determining “legal domicile” are: where you are registered to vote, where you maintain your

driver’s license, where you maintain your permanent or principal residence (as opposed to a special-purpose or temporary residence,

such as a vacation home, etc.).

Income is considered taxable when it is:

1. Received in cash; or

2. Paid by check or other negotiable instrument or equivalent that is mailed to taxpayer, regardless of date received; or

3. Credited on books of a bank, banking institution, broker or any agent of taxpayer; or

4. Received in merchandise or other commodities of intrinsic value.

Nontaxable Income

1. Dividends from stock in:

a. National banks (except holding companies).

b. Tennessee-chartered state banks (except holding companies).

c. Federal savings and loan associations and/or savings and loans in Tennessee (except holding companies).

d. Insurance companies licensed to do business in Tennessee (except holding companies).

e. Loan companies and cemetery companies in Tennessee.

Mutual funds and investment trusts to the extent the fund or trust invests in U.S. bonds or Tennessee municipal bonds.

2. Dividends on insurance policies.

3. Interest from the following if the instrument matures in six months or less from the date of issuance:

a. Bonds, mortgages, deeds of trust, personal notes, promissory notes, commercial paper, or other written instrument, issued by

any person, firm, corporation, joint-stock company, business, trust or partnership.

4. Interest from the following regardless of the date of maturity:

a. Bonds of the state of Tennessee and its counties and municipalities.

b. Bonds of the U.S. Government and its agencies. (FNMA, GNMA or FHLMC are not agencies of the U.S. Government so interest

they pay to their investors is taxable.)

c. Certificates of deposit issued by any bank, savings and loan association or credit union.

d. Repurchase agreements or similar evidences of indebtedness. A repurchase agreement is an investment instrument whereby

a person buys a security and the seller (usually a broker) agrees to repurchase the security on a certain date for a certain price.

5. Interest from insurance policies if interest is payable on demand.

6. Interest from savings accounts, checking accounts or money market accounts in any bank, savings and loan association or credit union

(except money market funds).

7. Interest or dividends from credit unions.

8. Income described by a partnership or S corporation as portfolio or pass-through interest or dividends, unless actually paid to a partner

with a certificate of transferable interest, or to a shareholder.

9. Earnings or distributions from education and Roth IRAs that are not subject to federal income tax.

10. Distributions of income or earnings from federally recognized retirement accounts, including IRAs.

11. Capital gains from the sale of real estate, stock, etc. (Capital gain distributions from mutual funds are taxable.)

12. Distributions paid on or after July 1, 2006, to shareholders of publicly-traded real estate investment trusts (REITS). Distribu-

tions paid prior to this date are taxable.

13. Earnings or distributions received on or after July 1, 2006, from health savings accounts (HSAs). Earnings received prior to this date are

taxable to the extent they are derived from sources taxable for Tennessee income tax purposes.

Rate of Taxation: All taxable dividends and interest which exceed the $1,250 single exemption or the $2,500 joint exemption are

taxable at the rate of 6%.

Penalty on Delinquent Tax: Penalty on delinquent tax will accrue at the rate of five percent (5%) per month or portion of a month,

for a maximum penalty of twenty-five percent (25%) of the delinquent tax or a minimum penalty of $15.

Interest on Deficient or Delinquent Tax: Interest on deficient or delinquent tax will accrue at the annual interest rate, determined

by the Commissioner of Revenue, which is in effect when the deficient or delinquent tax is paid, without regard to the taxable period

involved. The interest rate is determined on July 1 of each year.

Tax payment: Make checks or postal money orders payable to Tennessee Department of Revenue. Tax may be paid in cash at the Nashville office

or the regional offices (Chattanooga, Jackson, Johnson City, Knoxville, and Memphis). Refund: If a refund of $200 or more is requested on

Line 9, a Report of Debts form must be completed and filed with the return.

Distribution of Income Taxes Collected: Three-eighths (3/8) of the income taxes collected are distributed among the cities and

counties of the state. In order for the taxes to be properly distributed, please provide the name of the county and city (if the taxpayer

resides within an incorporated municipality) of the taxpayer's legal residence in the appropriate space on the front of the return.

When and where to file: A taxpayer filing on a calendar year basis must file a return by April 15 of the following year. A taxpayer’s

tax year means the calendar year unless a fiscal year is elected by the taxpayer when the first fiscal year return is due to be filed. For

a taxpayer on a fiscal year filing, the return is due by the 15th day of the fourth month following the end of the fiscal year.

Request for an extension of time to file must be made on or before the due date of return.

Mail returns or extension requests to: Tennessee Department of Revenue, Andrew Jackson State Office Building, 500 Deaderick Street,

Nashville, TN 37242. For additional information, please call our statewide toll free number at (800) 342-1003. Out-of-state callers must

dial (615) 253-0600.

Form Inc 250 - Individual Income Tax Return Page 4

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