HIT-13 - Examples of Taxable Dividends and Interest

Dividends:                                                            

• From investment trusts or mutual funds, including capital gain distributions, whether taken in stock or cash  
• From stock of banks or savings and loan associations situated outside Tennessee  
• From distribution of profits among stockholders even though not formally declared a dividend
• From holding companies, including those holding banks or insurance companies situated inside or outside Tennessee        
• From money market funds           

Interest:                                                                

• On all bonds issued by any person, firm, church, joint stock company, business trust or corporation      
• On bonds issued by states, counties, municipalities or political subdivisions outside Tennessee  
• On bonds issued by foreign governments 
• On all mortgages or other commercial paper maturing in more than six months from date of issue
• On written obligations that state interest is to be paid and mature in more than six months from date of issue (See Nontaxable Interest for exceptions.)