2015 Michigan Citiesmeic.cedamichigan.org/files/Michigan-Cities-Common-Form... · 2015-11-23 · MI-1040 CF 2 Michigan Cities ... Detroit Hudson Port Huron. ... For a resident individual,

2015

Michigan Cities

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

What’s New

• CF-1040X – Amended City Forms

• Expansion of 2D Barcode Use

3

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.

Exemptions

6

Taxwise W-2 City Codes

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• 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

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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.

Case 1 – Full Year City Resident

9Resident

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

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Case 2 – Nonresident

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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


Second Address




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.


12Nonresident


13Nonresident

Case 3 – Part Year Resident

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Case 3

Part Year Resident JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECWhere did you live during 2015?


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




Employer 2 Meijer - Wyoming X X X X XEmployer 2 second location


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.


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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?


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



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


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17Part Year

Case 3 – Part Year Resident –Alternative Day Count

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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

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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?


First Address 3935 Avery NW, Walker MI 49534


Second Address




Employer 2Meijer -Wyoming X X X X X

Employer 2 second location


One Employer with multiple locations For Two Taxable Cities, provide the address of the work location inside the taxable city on the wage allocation .

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

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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

Attachments

23

Documents

2015 Michigan Citiesmeic.cedamichigan.org/files/Michigan-Cities-Common-Form... · 2015-11-23 · MI-1040 CF 2 Michigan Cities ... Detroit Hudson Port Huron. ... For a resident individual,