2015 Michigan Cities

Transcription

1 2015 Michigan Cities

2 Taxable Michigan Cities Michigan Cities Accepting the 2015 Common Form Albion Grayling Lansing Portland Battle Creek Hamtramck Lapeer Saginaw Big Rapids Highland Park Muskegon Springfield Flint Ionia Muskegon Heights Walker Grand Rapids Jackson Pontiac Michigan Cities Not Accepting the 2015 Common Form Detroit Hudson Port Huron MI-1040 CF 2

3 What s New CF-1040X Amended City Forms Expansion of 2D Barcode Use 3

4 INCOME SUBJECT TO CITY INCOME TAX Residents: All salaries, wages, bonuses, commissions and other compensation; net profits from business or profession; net rental income; capital gains less capital losses; interest and dividends; income from estates and trusts; and other income. Nonresidents: Salaries, wages, bonuses, commissions and other compensation for services rendered or work performed in the city; net rental income from property located in the city; net profits from a business, profession or other activity to the extent that it is from work done, services rendered or activity conducted in the city; capital gains less capital losses from the sale of real or tangible personal property located in the city. Part-Year Residence: Prorated share of income stated above. A tax calculation worksheet is required to show income that is excluded, taxed as a resident, and taxed as a nonresident. Resident 4

5 DATA Flow The common city income tax form is set up to flow from the federal return of the taxpayer. The starting points are the line items of income (lines 7 through 21 of federal Form 1040 or related lines of Form 1040EZ or Form 1040A) with where applicable, attached schedules and worksheets detailing the computation of exclusions or adjustments necessary to properly report the city s taxable income. 5

6 Exemptions 6

7 Taxwise W-2 City Codes Albion ( Albion) Battle Creek (Bcreek) Big Rapids (Brapids) Detroit (Detroit) Flint (Flint) Grand Rapids (Grapids) Grayling (Grayling) Hudson (Hudson) Hamtramck (Hamtramk) Highland Park (HighlandP) Ionia (Ionia) Jackson (Jackson) Lansing (Lansing) Lapeer (Lapeer) Muskegon (Muskegon) Muskegon Heights (Mheights) Pontiac (Pontiac) Port Huron (Porthuron) Portland (Portland) Saginaw (Saginaw) Springfield (Sfield) Walker (Walker) 7

8 Case 1 Full Year City Resident Case 1 Full Year Resident JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Where did you live during 2015? What months did you live there? First Address 2468 Otillia SE Grand Rapids MI X X X X X X X X X X X X Second Address Employer 1 When did you work there? JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC McDonalds - Wyoming X X X X Employer 2 Meijer - Wyoming X X X X X Meijer - Grand Employer 2 second location Rapids X X X X X X X One Employer with multiple locations For a resident individual, use the address of the primary work location. 8

9 Case 1 Full Year City Resident Resident 9

10 Wage Codes for MI - CF Worksheet 1 Wage Type Wages received as a household employee for which you did not receive a Form W-2. Tips from Form W-2, box 8, federal Form 4137, line 4 or other taxable tips. Taxable Dependent care benefits. Adoption benefits. Scholarship and Fellowship Disability pension shown on Form 1099-R if you have not reached the minimum retirement age set by your employer. (Note: A disability pension is excludible from city income.) Corrective distributions (excess salary deferrals and excess contributions plus earnings) from a retirement plan shown on Form 1099-R. Does not include distributions from an IRA. Code HHS TIPS DCB AB SCH DP CD Wages from Form 8919, line Excess employee business expense reimbursement from Form 2106, line Excess moving expense reimbursement from Form 3903, line 5, answer: no Foreign earned income not reported on a Form W-2. FEI Sick pay or disability payments not reported on a Form W-2. SDP Ordinary income from employer stock transactions not reported on Form W-2. Other income earned as wages not reported on Form W-2. IEST OW 10

11 Case 2 Nonresident Case 2 Full Year Non Resident JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Where did you live during 2015? What months did you live there? First Address 2110 Collins SW Wyoming MI X X X X X X X X X X X X Second Address Employer 1 Employer 2 Employer 2 second location When did you work there? JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC McDonalds - Wyoming X X X X Meijer - Wyoming X X X X X Meijer - Grand Rapids X X X X X X X One Employer with multiple locations For a nonresident individual using the wage allocation worksheet, provide the address of the work location outside the city. 11

12 Case 2 Nonresident Nonresident 12

13 Case 2 Nonresident Nonresident 13

14 Case 3 Part Year Resident Case 3 Part Year Resident JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Where did you live during 2015? What months did you live there? First Address 2110 Collins SW, Wyoming MI X X X X X X Second Address 2468 Otillia SE, Grand Rapids MI X X X X X X When did you work there? JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Employer 1 McDonalds - Wyoming X X X X Employer 2 Meijer - Wyoming X X X X X Employer 2 second location Meijer - Grand Rapids X X X X X X X One Employer with multiple locations For a Part Year individual using the wage allocation worksheet, provide the address of the work location outside the city. 14

15 Case 3 Part Year Resident Part Year Resident JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Where did you live during 2015? What months did you live there? First Address 2110 Collins SW, Wyoming MI X X X X X X Second Address 2468 Otillia SE, Grand Rapids MI When did you work there? X X X X X X Employer 1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC McDonalds - Wyoming Employer 2 Meijer - Wyoming Meijer - Grand Employer 2 second location Rapids Step One Excludible Portion McDonalds Meijer Total Days Worked Per Month Total Days Worked Days Lived or Worked in City Percentage Excludible from City 100% 8.33% Total Earned 2,361 14,389 16,750 Excluded Portion 2,361 1,199 3,560 Step Two Resident/Non Resident Allocation Wages as Nonresident 5,995 Wages as Resident 7,195 Excluded 3,560 Total Wages 16,750 15

16 Case 3 Part Year Resident 16

17 Case 3 Part Year Resident Part Year 17

18 Case 3 Part Year Resident Alternative Day Count Tax wise does not allow partial days unless calculating by hours. The objective is to reach the correct dollar amount to be excluded by manipulating the day count. 18

19 Case 4- Lives in a Taxable City & Works in Another Live in one, work in another taxable city JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Where did you live during 2015? What months did you live there? First Address 3935 Avery NW, Walker MI X X X X X X X X X X X X Second Address When did you work there? Employer 1 Employer 2 Employer 2 second location JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC McDonalds - Wyoming X X X X Meijer - Wyoming X X X X X Meijer - Grand Rapids X X X X X X X One Employer with multiple locations For Two Taxable Cities, provide the address of the work location inside the taxable city on the wage allocation. 19

20 Case 4 Lives in a Taxable City & Works in Another 20

21 Calculation of Credit For Tax Paid to Another City CALCULATION OF CREDIT FOR TAX PAID TO ANOTHER CITY (Residents only) Resident City WALKER Other City GRAND RAPIDS Use a separate calculation worksheet for each city 1. Income tax taxable in the nonresident city that is also taxable in the resident city (Same amount for both cities) 8,393 8, Exemptions amount per city's return Taxable income for credit 7,793 7, Tax for credit purposes at each city's nonresident tax rate (Line 3 * tax rate) Credit allowed for tax paid to another city (Enter the smaller of resident city's or other city's tax from line 4) 39 Walker's Nonresident Rate 0.5% Grand Rapids' Nonresident Rate 0.75% Grand Rapids Walker 21

22 Completing the return What to send in? 2D Barcode Sheet Base Forms Required Attachments Have client sign page 2 of the return Due date of the return Payment is due with the return Amended 22

23 Attachments 23