Tenn preparers please

[taxmom34]

i finally got stuff from client in Tenn. now i need to do Tenn return. they have installment interest from property sold here in mass. they are full year residents of Tenn, so i can take the exemption of $2500. besides the $20,000 interest on the installment sale, they have mass bank int of $14 and interest from john hancock ins and dividends from met life. do i report all these on Tenn. ?
they are being taxed on mass for the installment sale but can't get credit for paying another state because they are not residents any more. so they are being taxed twice on this income, is there something i should be doing. it doesnt seem fair.
and of course i need to go over again that client needs to file Tenn and they were told they don't and why don't i go to the website and read. where to they think i got the **** form to file?
do any of you live in the Lebanon area, would you like a new client next year?
thanks for any help, it would be appreciated

[Snaggletooth]

TaxMom

All interest coming from sources other than Tennessee-chartered banks is taxable. All dividends coming from sources other than Tennessee-foundation organizations is taxable. Your $20,000 in personal interest is thus taxable. The $14 Mass bank interest would be exempt if they operate in TN - I would ignore it. Insurance on John Hancock if it is on a life insurance policy is exempt - don't know why but life insurance interest gets a free pass. Dividends from Met Life are taxable, unless they are a return of capital, or the old-style "mutual" life insurance dividends, ruled to be a reduction in premium.

If they file married, there is a $2500 exemption.

They were probably told there was no income tax in Tennessee when they moved here. Most people, even long-time residents, are not aware of this rare "Hall" tax.

I have clients I visit north of Murfreesboro close to Lebanon, and could handle your client when I see them. If they would want to drive to see me, it's about an hour drive. My phone # is 931-723-5022. You might also check with RCooper, she's very good, and about an hour-and-a-half from Lebanon, but it is a spectacular scenic drive and all interstate.

[RitaB]

I love Snaggletooth

Wow. Thanks, Snags. (Can I call you Snags?)

Am I really this far gone that I think this exact situation also happened several days ago? Am I losin it? Do I need to check into a calm place for a while?

[taxmom34]

i forgot

to ask on my last post, how about the capital gain (principal on installment sale) not taxable to tenn? i didn't see it listed on instructions so i assumed not taxable, am i right?

[RitaB]

Correct

to ask on my last post, how about the capital gain (principal on installment sale) not taxable to tenn? i didn't see it listed on instructions so i assumed not taxable, am i right?

Yep, that's right. Capital gains distributions, however, would be taxable.

I can't tell you how many people who move here are shocked (shocked!) to find out TN does have an income tax return. It's a weird one, but we have one. Like a lot of things here, now that I think about it...

[taxmom34]

thank you tennessee

thank you tennessee preparers