Tennessee Individual Income Tax Return - INC 250

What is the TN INC 250 form?

The Tennessee Individual Income Tax Return - INC 250 form is the tax return form used by individuals to file their state income tax in Tennessee. It should be filed by anyone who has earned income in Tennessee, regardless of whether or not they are a resident of the state.

Who is required to file Tennessee individual income tax return?

Tennessee individual income tax form is required to be filed by individuals who have income from interest and/or dividends that exceed $1,250 for single filers or $2,500 for joint filers. This tax is known as the Hall Income Tax, which specifically applies to individuals receiving investment income from stocks, bonds, and other similar sources.

Note that as of January 1, 2021, Tennessee no longer imposes the Hall Income Tax due to the gradual phase-out of this tax approved by the Tennessee Legislature in 2016. Thus, individuals with interest and dividend income are no longer required to file a Tennessee individual income tax return starting from the 2021 tax year onwards.

How to Fill Out the Form Inc 250

The Tennessee INC 250 form is made up of several parts listed below:

1. Start by entering the fill out the "Resident Information" section of the form with your name, Social Security Number (SSN), date of birth, address, and other relevant details.
2. If you are filing a joint return, complete the "Spouse Information" section, providing your spouse's name, SSN, and date of birth.
3. In the "Filing Status" section, check the box corresponding to your filing status (single, married filing jointly, etc.).
4. Move on to the "Exemptions and Dependents" section. Enter the total number of exemptions you are claiming in the field provided, and fill out the "Dependents" table with the necessary information for each dependent.
5. In the "Income" section, report your salaries, wages, tips, etc., and any other sources of income. If you have multiple sources of income, use the "Additional Income" portion of the form to add more lines.
6. Calculate and enter your total income by summing up the amounts from all sources in the "Total Income" field. 
7. In the "Deductions" section, fill out the applicable deductions, such as the standard deduction, itemized deductions, and other deductions.
8. Calculate and enter your Adjusted Gross Income (AGI) in the "Adjusted Gross Income" field by subtracting the total deductions from your total income.
9. Fill out the "Tax, Credits, and Payments" section of the form. Calculate your tax liability and enter it in the "Total Tax" field.
10. If you claim any tax credits, complete the "Credits" table with the necessary information for each credit.
11. Calculate your total tax credits by summing up the amounts from all credits and entering them in the "Total Credits" field.
12. Enter any payments made in the "Payments" portion of the form.
13. Determine your balance due or refund in the "Balance Due/Overpayment" section by subtracting your total credits and payments from your total tax.
14. If you have an overpayment, choose whether you'd like a refund or apply the overpayment as a credit to the next year's taxes.
15. Once you've filled out all required sections, sign and date this your Tennessee form using PDFliner's e-signature option.

What are some mistakes in filling out Tennessee INC 250?

Here are some common mistakes to avoid when filling out the Tennessee individual income tax form template:

• Incorrect Tax Year: Make sure to enter the correct tax year at the top of the form for which you are filing the return.
• Incomplete or inaccurate personal information: Ensure that you provide complete and accurate personal details for yourself and your spouse (if applicable), including names, Social Security Numbers, dates of birth, and mailing addresses.
• Incorrect filing status: Choose the appropriate filing status (single, married, filing jointly, etc.) that matches your situation.
• Misreporting income: Make sure to report all your interest and dividend income from all sources and double-check your calculations.
• Not claiming exemptions and dependents: Don't forget to claim exemptions for yourself, your spouse, and any dependents, and provide the necessary information for each dependent.
• Inaccurate deductions: Ensure that you claim the correct amount of deductions, including the standard deduction, itemized deductions, and other applicable deductions.
• Incorrect tax calculation: Make sure you calculate your total tax liability correctly based on the tax rate applicable to your income category.
• Missing or ineligible tax credits: Ensure that you are accurately claiming eligible tax credits, and don't miss out on any credits for which you qualify.
• Miscalculating balance due or overpayment: Double-check your calculations for the balance due or overpayment to avoid potential discrepancies.
• Skipping the signature: Failing to sign and date your return can lead to processing delays or even rejection of your return. Remember to sign using the e-sign feature provided by PDFliner.