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Taxable Michigan Cities
2MI-1040 CF
Michigan Cities Accepting the 2015 Common Form
Albion Grayling Lansing PortlandBattle Creek Hamtramck Lapeer SaginawBig Rapids Highland Park Muskegon SpringfieldFlint Ionia Muskegon Heights WalkerGrand Rapids Jackson Pontiac
Michigan Cities Not Accepting the 2015 Common Form
Detroit Hudson Port Huron
INCOME SUBJECT TO CITY INCOME TAX
4Resident
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.
DATA Flow
5
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.
Taxwise W-2 City Codes
7
• 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)
Case 1 – Full Year City Resident
8
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 49507
X X X X X X X X X X X X
Second Address
When did you work there?
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Employer 1McDonalds -Wyoming X X X X
Employer 2 Meijer - Wyoming X X X X X
Employer 2 second locationMeijer - Grand 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.
Wage Codes for MI - CF Worksheet 1
Wage Type Code
Wages received as a household employee for which you did not receive a Form W-2. HHS
Tips from Form W-2, box 8, federal Form 4137, line 4 or other taxable tips. TIPS
Taxable Dependent care benefits. DCB
Adoption benefits. AB
Scholarship and Fellowship SCH
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.)DP
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.CD
Wages from Form 8919, line 6. 8919
Excess employee business expense reimbursement from Form 2106, line 8. 2106
Excess moving expense reimbursement from Form 3903, line 5, answer: no. 3903
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. IEST
Other income earned as wages not reported on Form W-2. OW
10
Case 2 – Nonresident
11
Case 2
Full Year Non Resident JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECWhere did you live during 2015?
What months did you live there?
First Address 2110 Collins SW Wyoming MI 49519
X X X X X X X X X X X X
Second Address
When did you work there?
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Employer 1McDonalds -Wyoming X X X X
Employer 2Meijer -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 nonresident individual using the wage allocation worksheet, provide the address of the work location outside the city.
Case 3 – Part Year Resident
14
Case 3
Part Year Resident JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECWhere did you live during 2015?
What months did you live there?
First Address 2110 Collins SW, Wyoming MI 49519
X X X X X X
Second Address 2468 Otillia SE , Grand Rapids MI 49507
X X X X X X
When did you work there?
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Employer 1McDonalds -Wyoming X X X X
Employer 2 Meijer - Wyoming X X X X XEmployer 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.
Case 3 – Part Year Resident
15
Step One
Excludible Portion McDonalds Meijer TotalDays Worked Per Month 10 20
Total Days Worked 40 240
Days Lived or Worked in City 0 220
Percentage Excludible from City
100% 8.33%
Total Earned 2,361 14,389 16,750
Excluded Portion 2,361 1,199 3,560
Step TwoResident/Non Resident Allocation
Wages as Nonresident 5,995
Wages as Resident 7,195
Excluded 3,560
Total Wages 16,750
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 49519 X X X X X X
Second Address 2468 Otillia SE , Grand Rapids MI 49507
X X X X X X
When did you work there?
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Employer 1McDonalds -Wyoming 590.25 590.25 590.25 590.25
Employer 2 Meijer - Wyoming 1199.08 1199.08 1199.08 1199.08 1199.08
Employer 2 second locationMeijer - Grand Rapids 1199.08 1199.08 1199.08 1199.08 1199.08 1199.08 1199.08
Case 3 – Part Year Resident –Alternative Day Count
18
Tax wise does not allow partial days unless calculating by hours. The objective is to reach the correct dollar amount to be excluded by manipulatingthe day count.
Case 4- Lives in a Taxable City & Works in Another
19
Live in one, work in another taxable city JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECWhere did you live during 2015?
What months did you live there?
First Address 3935 Avery NW, Walker MI 49534
X X X X X X X X X X X X
Second Address
When did you work there?
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Employer 1McDonalds -Wyoming X X X X
Employer 2Meijer -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 Two Taxable Cities, provide the address of the work location inside the taxable city on the wage allocation .
Calculation of Credit For Tax Paid to Another City
21Grand Rapids Walker
CALCULATION OF CREDIT FOR TAX PAID TO ANOTHER CITY (Residents only)
Resident City WALKER
Other City GRAND RAPIDSUse 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 8,393
2. Exemptions amount per city's return 600 600
3. Taxable income for credit 7,793 7,793
4. Tax for credit purposes at each city's nonresident tax rate (Line 3 * tax rate) 38.97 58.45
5. 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%
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
22Amended