Was a part year Illinois resident for the first three months of 2017. Then moved to Tennessee. On the Tennessee return dividend and interest income earned in Illinois is shown as non taxable income. Why?
On the Tennessee return, the beginning of year date is shown as January 1, 2017 instead of the date actually moved to Tennessee. How do you enter the correct beginning of year date? The correct dates are entered in the personal info section.
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This is correct filing. Tennessee does not have a true income tax return, but interest and dividends in Tennessee may be taxable above a certain amount. The TN return does not have a part-year section; rather, any interest received while not a TN resident is exempted from TN tax. Please click on the following link for more information: Hall Individual Income Tax Return Kit, and on page 3, you will note this excerpt on who must file the TN return:
A person who moved into or out of Tennessee during the year and whose taxable interest and dividend income during the period of Tennessee residency exceeded $1,250 ($2,500 if married, filing jointly). (Italics added)
Therefore, your Illinois interest and dividend income is properly non-taxable in Tennessee, but all of your interest and dividend income for the year is reported to determine the taxable amount.
This is correct filing. Tennessee does not have a true income tax return, but interest and dividends in Tennessee may be taxable above a certain amount. The TN return does not have a part-year section; rather, any interest received while not a TN resident is exempted from TN tax. Please click on the following link for more information: Hall Individual Income Tax Return Kit, and on page 3, you will note this excerpt on who must file the TN return:
A person who moved into or out of Tennessee during the year and whose taxable interest and dividend income during the period of Tennessee residency exceeded $1,250 ($2,500 if married, filing jointly). (Italics added)
Therefore, your Illinois interest and dividend income is properly non-taxable in Tennessee, but all of your interest and dividend income for the year is reported to determine the taxable amount.
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