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Individual Form INC 250 Tennessee Filing Requirements

SOLVEDby IntuitLacerte Tax12Updated July 12, 2022

Why is there no tax being calculated on the INC 250 form for the state of Tennessee?

Tennessee requires individuals with interest and/or dividend income of more than $1,250 ($2,500 Married Filing Joint) to file a tax return.

If the amount from the Schedule A (Form INC250, Page 2), does not exceed the exemption amount, not tax will be calculated. To ensure taxable dividends and interest are flowing to the Schedule A, they need to be marked as taxable for Tennessee:

  • Check the box Taxable to Tennessee {TN} in Screen 11, Interest Income, in the Other section for the applicable 1099-INT.
  • Check the box Taxable distribution {TN} in Screen 12, Dividend Income, in the Other section for the applicable 1099-DIV.
  • Amounts entered in Other interest (Ctrl+E) or Other dividends (Ctrl+E) in Screen 50.181, Tennessee Income, in the Tennessee Taxable Interest and Dividends section.

For Schedule B, Non-Taxable Dividends and Interest, the amounts will flow from:

  • Any 1099-INT entered in Screen 11, Interest Income, that doesn't have the Taxable to Tennessee {TN} checked in the Other section.
  • Any 1099-DIV entered in Screen 12, Dividend Income, that doesn't have the Taxable distribution {TN} checked in the Other section.
  • Amounts entered in Other interest (Ctrl+E) or Other dividends (Ctrl+E) in Screen 50.181, Tennessee Income, in the Tennessee Non-Taxable Interest and Dividends section.

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