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                                        2022 NET PROFIT INCOME TAX 

                                      FORM 27 INSTRUCTION BOOKLET 

Filing Requirements                                                                                  Alternate Method 
Every corporation, partnership, trust, or estate that conducts  business in a RITA                   Check this box if you are requesting a method other than the prescribed three 
municipality  must  file  a return and pay  tax on net profit earned in the municipality.  A         factor  formula  for  apportioning  net  profits.  The  request  must  be  in  writing, 
disregarded entity or qualifying subchapter S subsidiary for federal income tax purposes             attached  to this  return, and contain  an explanation as to  why  an  alternate 
is not considered the “taxpayer” under Ohio law.  Instead, the “taxpayer” includes any               method is being requested.    
other person who owns the disregarded entity or qualifying subchapter S subsidiary. 
                                                                                                     Small Employer 
When to File                                                                                         Check this box if the taxpayer is a small employer.  A small employer is an Ohio 
Generally,  a business must  file its income tax return on or before the fifteenth (15th)            employer that had total gross revenue of less than $500,000.  A small employer 
day of the fourth (4th) month following the end of the taxpayer’s taxable year.                      does not include the federal government, any  state  government, including  any 
Note: Calendar year end filers due April 18, 2023.                                                   state agency or instrumentality; any political subdivision; or any entity treated as 
                                                                                                     a  government for financial  accounting  and reporting purposes.  See  ORC 
                                                                                                     §718.01 (TT).
Where to File 
Forms  may  be  mailed  with  payment  to:    RITA,  P.O.  Box  94582,  Cleveland,  OH 
44101-4582  or  without payment  to:    RITA, P.O. Box 89475,  Cleveland, OH                         Line 1. Federal Taxable Income 
44101-6475,  Please visit ritaohio.com for office locations and business hours.                      Indicate your C Corporation Federal Taxable Income (“FTI”), or the equivalent on 
                                                                                                     Line  1.  Refer  to  the  AFTI  worksheet  found  on  Page  3  of  Form  27  or  at 
                                                                                                     ritaohio.com to determine the starting point for FTI. A taxpayer that is not a C 
When a Return is Not Required                                                                        Corporation and is not an individual, must compute FTI as if the taxpayer were 
Nonprofits(as defined in  IRC  Section 501c) are not required to file an annual return if            a C Corporation. 
a  copy of the organization’s  approved IRS determination letter is on file with RITA. 
However, should a  nonprofit have  unrelated business income, said nonprofit is 
required to file a municipal return and pay tax thereon.                                             Line 3B.  Pre-Apportioned Losses from Tax 
                                                                                                     Years Beginning on or After 1/1/17 
Extensions of Time to File                                                                           Check this box if the business will be utilizing a net operating loss incurred prior 
A  federal  extension  extends  the  municipal  due  date  to  the  fifteenth  day  of  the  tenth   to 1/1/17 before utilizing pre-apportioned losses from tax years beginning on or 
month after the last  day  of the taxable  year to  which the return relates.   It is not            after 1/1/17.  The form is not designed to accommodate this approach, but the 
necessary to file a copy of the federal extension with RITA by the annual filing due date.           approach is permitted.  If you check the box, attach a schedule that shows the 
Attach a copy of the federal extension when filing the Net Profit annual return on                   net operating loss and how it is being utilized.  The schedule is subject to review. 
or  before  the extended  due  date.  If  you have not requested or received a federal               If post-apportioned net operating losses are applied first, those losses must be 
extension you may receive an extension for the filing of the Net Profit annual return by             applied to apportioned income.   If  a pre-apportioned net operating loss is also 
completing Form 20-EXT Net Profit Estimated Income Tax and/or Extension of Time to                   available, the income must then be grossed up before applying any net operating 
File which is due by the annual filing due date. An extension to file is not an extension to         loss  incurred  for a  tax year  starting on or after 1/1/17.  See  page 4  of these 
pay – the tax owed must be paid by the annual filing due date. Remit Form 20-EXT to                  instructions for an example of this method and sample worksheet. 
pay the tax balance due.  
                Extensions of time to file have no effect on the due dates of estimated              Line 3Bi.  Total Unutilized Pre-Apportioned 
                taxes. If the return is on extension, use Form 20-EXT to pay first quarter           Losses from Tax Years Beginning on  or 
               estimated taxes on or before the fifteenth (15th) day of the fourth (4th) 
                month of the tax year.                                                               After 1/1/17 
Caution                                                                                              Enter the TOTAL  amount  of   unutilized  pre-apportioned net  operating loss 
                                                                                                     available.  
Rounding Off to Whole Dollars 
A business may round off cents on its return and schedules. Eliminate any amount less                Line  3Bii.   Pre-Apportioned Losses from 
than fifty cents and increase any amount from fifty cents through ninety-nine cents to the 
next higher dollar.                                                                                  Tax Years Beginning on or  After 1/1/17 
                                                                                                     Utilized in this Tax Year               Enter the total amount  of  pre-
Penalty and Interest                                                                                 apportioned net operating loss being used. This amount is subject to the 
In  accordance  with the law, penalty and interest is charged  on  taxes  (including                 50% limitation under  ORC  718.01(D)(3)(c)(i).  The  NOL  is  limited  to  the 
estimated taxes) paid late, even if an extension of time to file is granted. Penalties may           lesser of 50% of the utilized NOL or 50% of the income. Enter the largest 
also  be charged for failing to  file a return  when due. A fee will be charged to  your             dollar amount of the NOL being utilized for any municipality that had a tax 
account  for a dishonored  check or  a  check/electronic debit  that cannot be                       in effect prior to 1/1/16.  
processed.    RITA  may  choose  to  redeposit  your  returned  item  electronically.  
Additionally,  you  understand and  agree that we may collect a returned item                        For  municipalities  and  taxing  jurisdictions  that  first  imposed  a  tax  on  or 
processing fee as allowed by state law. Electronic filers assume all responsibility                  after  January  1,  2016,  net  operating  loss  carryforward  amounts  are  not 
for the accuracy of the information submitted and are, therefore, subject to any                     phased-in and may be used in full.  The following municipalities and taxing 
charged fees described above for any errors.                                                         jurisdictions imposed a tax  on  or after January  1,  2016:  ALEXANDRIA, 
                                                                                                     AMELIA,  ASHLEY, BETHEL, BLOOMVILLE,  BRIDGEPORT,  BURBANK, 
                                                                                                     CHESTERVILLE, CIRCLEVILLE-PICKAWAY  TWP JEDD, CLARKSVILLE, 
Uniform Definition of Net Profit                                                                     DARBYVILLE,  DORR  STREET  JEDD,  ETNA-REYNOLDSBURG  JEDD  1, 
Ohio  law  provides  a  uniform  definition  of  taxable  income  for  net  profit  tax  returns,    ETNA-REYNOLDSBURG  JEDD  2,  ETNA-REYNOLDSBURG  JEDD  3,  ETNA-
“Adjusted Federal Taxable  Income” (AFTI). This definition can  be found under  Ohio                 REYNOLDSBURG JEDD  4,  ETNA-REYNOLDSBURG JEDD  7,  FULTON, 
Revised Code (ORC) §718.01. Refer to the AFTI worksheet found on Page 3 of Form 27                   GETTYSBURG, HANOVER, HELENA, HOLLAND SPRINGFIELD  TWP JEDZ, 
or at ritaohio.com  to determine the AFTI as it pertains to a  taxpayer that is not a  C             JACKSON, KIRKERSVILLE,  LATTY,  LODI, LYONS, MARENGO, MILFORD 
Corporation  and  is  not  an  individual,  and  who  must  compute  Federal  Taxable  Income        JEDD V,    MILFORD  JEDD VI,  MILFORD  JEDD VII,  MILLERSPORT, 
(FTI) as if the taxpayer were a C Corporation.                                                       NEWTONSVILLE, NEY, OSTRANDER, PAYNE, RISINGSUN, SHALERSVILLE 
                                                                                                     TWP  JEDD,  SHARON  TWP  JEDD,  SMITHFIELD,  SOUTH  VIENNA,  ST. 
                                                                                                     LOUISVILLE,  STOUTSVILLE,     WASHINGTONVILLE, WAYNE             LAKES,
Name and Address                                                                                     WILLIAMSBURG JEDD, WILLIAMSPORT.
Print your company name, address, and federal identification number. 
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Line 3C. Amount Allocable to RITA AFTI Worksheet
If the business operates strictly within one RITA municipality, enter 100% as the Ohio law creates a uniform definition of taxable income for net profit tax
percentage and enter the amount on Line 3C. Otherwise, enter the average returns, Adjusted Federal Taxable Income (AFTI). The definition of AFTI is found
percentage from Page 4, Schedule Y, Step 5. You must complete Schedule B on at ORC §718.01(E). A taxpayer that is not a C Corporation and is not an
Page 2 for any amount shown on Line 3C. The Ohio Revised Code requires that individual must make the adjustments in Lines B, C and/or Line D below.
Schedule Y be the default method used to determine the percentage of income
attributable to RITA municipalities by business entities conducting business activity Line B. Section 179 Adjustment
both within and outside RITA municipalities. Add federal Section 179 depreciation in excess of what would be allowed for
Per ORC §718.02 (G) when computing taxable income allocable to Brooklyn, Lagrange, federal tax purposes if the taxpayer were a C Corporation. Excess Section 179
Niles, Oberlin, and Wintersville add back to the income apportioned to each of these expenses should be carried forward to subsequent years. Subtract Section 179
municipalities the amount of the stock option income that is exempt from each depreciation carried over from prior years to the same extent as would be
municipality’s withholding (attach schedule). allowed if a C Corporation. Estates and trusts can claim the IRC section 179
deduction to the extent the deduction would be allowed if the estate or trust were a
C corporation. Attach a schedule showing your carryforwards for municipal
Schedule B – Distribution of Tax within tax purposes.
RITA Municipalities
If the amount of income (loss) and tax reported on Lines 3C and 5 of this form are to be Line C. Charitable Contribution Adjustment
allocated to any RITA municipality, you must fill in the names of all the RITA Add charitable contributions in excess of what would be allowed for federal
municipalities in which you conducted business along with the amount of taxable tax purposes if the taxpayer were a C Corporation. Excess charitable
income (loss) and tax due for each. If tax due is $10 or less for a municipality, enter zero contributions should be carried forward to subsequent years. Subtract
in the Tax Due field of Schedule B for that municipality. The total tax distribution in charitable contributions carried over from prior years to the same extent as
Schedule B must equal the total tax due shown on Page 1, Line 5. Attach a schedule if would be allowed if a C Corporation. Attach a schedule showing your
you need more space. carry forwards for municipal tax purposes.
Failure to allocate a loss shown on Page 1, Line 3D may Line D. Other
 affect your ability to claim a net operating loss Each taxpayer, who is not an individual, must compute net profit as if the entity
carryforward in future years. were a C corporation. As such, in addition to the adjustments required for Lines
Caution B and C on this worksheet, the taxpayer must also make the following applicable
adjustments on Line D. of this worksheet:
• Add back any distribution deduction claimed on IRS form 1041 (estates
Schedule X – Reconciliation with Federal and trusts only).
• Add back the additional deductions if any, (generally, depreciation
Income Tax Return expense deductions) claimed on the IRS form 1065 on account of the
This schedule is used to make adjustments when total income (Line 1) includes election described in IRC section 743 or section 754 (partnerships and
income not taxable and/or items not deductible for municipal purposes. Enter the LLCs treated as a partnership only).
amounts of any such items in Schedule X and carry totals from Line G and Line Q • Add the amount of recapture income described in IRC section 291.
respectively, to Lines (2A) and (2B). • Add the amount of interest expense otherwise deducted to the extent that
deduction is not allowed to a C corporation under IRC section 163 (j).
Line A. Section 1221 and 1231 Losses • Add back all other items of income and deductions to the extent those
Report all losses (ordinary and capital) directly related to the sale, exchange, or other items (i) are not listed above, (ii) are no already included in the
disposition of an asset described in Section 1221 or 1231 of the Internal Revenue computation of net profit, and (iii) would be taxable or nondeductible,
Code (IRC). Losses related to Section 1221 assets are usually reported on Federal respectively, if the taxpayer were a C corporation.
Schedule D while losses related to Section 1231 assets are us ual l y reported • Subtract any amount otherwise included in computation of net profit to the
on Federal Form 4797. extent that amount would either be nontaxable or deductible if the
taxpayer were a C corporation.
Line B. Taxes Based on Income
Include foreign, state, local, and other taxes based on income. Schedule Y – Business Apportionment
Formula
Line C. 5% of Certain Intangible Income A Business Apportionment Formula consisting of the average original cost of
Multiply Schedule X, Line O, (if used) by 5%. (Line C is not applicable to Wickliffe; real and tangible personal property, gross receipts, and wages paid must be
intangible income is taxable to the city of Wickliffe). used by business entities not required to pay tax on entire net profits by
reason of doing business both within and without of RITA municipalities. (ORC §
Line D. Certain Owner Compensation 718.02) However, if the Business Apportionment Formula does not produce an
For use by taxpayers that are not C Corporations and are not individuals. Ohio law equitable result, another basis (for example Books and Records) may be
prohibits taxpayers that are not C Corporations and not individuals from claiming a substituted following the process outlined in Section 3(F)(3)(b) of RITA’s Rules
deduction for payments to a qualified self-employed retirement plan, payments for and Regulations.
health or life insurance for an owner or owner-employee, or federal self-employment tax.
Report all such payments here. Step 1. Property
The average original cost of real property and tangible personal property
Line E. REIT and RIC Adjustments within RITA municipalities. Annual rental on rented or leased real and
A real estate investment trust or regulated investment company must report all tangible personal property situated within the RITA municipality multiplied
dividends, distributions, or amounts set aside for the benefit of investors included in by 8.
Page 1, Line 1.
Step 2. Wages and Salaries
Wages, salaries and other compensation paid during the taxable period to
Line N. Certain Section 1221 and 1231 Gains W-2 employees for services performed within RITA municipalities,
Report all income and gains directly related to the sale, exchange, or other excluding compensation from which taxes are not required to be withheld
disposition of an asset described in Section 1221 or 1231 of the IRC. (Note: Do not under ORC § 718.011. If your business is considered a “Small Employer”
include income or gain(s) described in Section 1245 or 1250 of the IRC. ORC §718.01 as defined on page 1 of these instructions or your business is impacted by
(E) requires all S-Corporations and partnerships to increase their Section 1250 gains by the 20 day rule, allocate wages and salaries in the same manner in which
the adjustment all C Corporations must make under IRC Section 291.) they were withheld.

Line P. Other Items Not Taxable Step 3. Gross Receipts
Use this line to report pass-through income/(loss) from another entity. Indicate the Total gross receipts of the business or profession from sales and rentals
Federal Identification Number of the business that originated the pass-through income made and services performed during the taxable period in the municipal
and include a copy of the K-1 issued. Do not include or take credit for tax paid by the corporation to total gross receipts of the business or profession during the
business that generated the pass-through income. same period from sales, rentals and services, where made or performed.
Also use this line to report any other income RITA municipalities are specifically
prohibited from taxing that is not required to be reported on another line of
Schedule X or on the AFTI Worksheet. Note: Cancellation of indebtedness and wage
adjustments associated with federal work and job credits are included as income
under federal code. A FT I (ORC §7 1 8 . 0 1 (E )) does not permit deductions for
cancellation of indebtedness or for wage adjustments associated with federal work
and job credits
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Step 3. Gross Receipts (continued) HOW TO TREAT A POST APPORTIONED
Sales and gross receipts in RITA municipalities means:
(1) Gross receipts from the sale of tangible personal property shall be sitused to the NET OPERATING LOSS FROM TAX YEARS
municipal corporation only if, regardless of where title passes, the property meets
either of the following criteria: BEGINNING PRIOR TO 1/1/17:
The portion of a net operating loss sustained in any taxable year allocable to
a) The property is shipped to or delivered within the municipal corporation a RITA municipality may be applied against the portion of the profit of the
from a stock of goods located within the municipal corporation. succeeding year(s) allocable to the same RITA municipality until exhausted or
b) the property is delivered within the municipal corporation from a location expired. No portion of a net operating loss shall be carried back against net
outside the municipal corporation, provided the taxpayer is regularly engaged profits of any prior year. The portion of a net operating loss sustained shall be
through its own employees in the solicitation or promotion of sales within such allocated to a RITA municipality in the same manner as provided herein for
municipal corporation and the sales result from such solicitation or promotion. allocating net profits to the taxing municipality. A municipality specific
(2) Gross receipts from the sale of services shall be sitused to the municipal worksheet or schedule is required to support a ne t operating loss
corporation to the extent that such services are performed in the municipal c a rryf o rw a rd claimed on the return. The net operating loss of a
business which loses its identity through merger, consolidation, etc. shall be
corporation. allowed as a loss carryforward deduction to the surviving business entity to
(3) To the extent included in income, gross receipts from the sale of real property the extent permitted by the Internal Revenue Code.
located in the municipal corporation shall be sitused to the municipal corporation.
(4) To the extent included in income, gross receipts from rents and royalties from real Line 5. Municipal Tax Due
property located in the municipal corporation shall be sitused to the municipal You must complete Schedule B on Page 2 for any amount shown on Line 5. See
corporation. ritaohio.com to obtain current tax rates.
(5) Gross receipts from rents and royalties from tangible personal property shall be
sitused to the municipal corporation based upon the extent to which the tangible
personal property is used in the municipal corporation. Line 6A. Payments on Declarations of

Estimated Municipal Tax
Schedule Y-1. Reconciliation of S c h ed u l e Enter estimated payments made to RITA municipalities for this taxable year.

Y Wages to Withholding Returns
Use this schedule to reconcile workplace wages, salaries, etc. allocated to RITA Line 6B. Amount of Previous Year Credits
municipalities on Schedule Y with the amounts reported on your withholding returns Enter credit from prior year(s). (This should be the overpayment you indicated
filed for the tax year covered by this return. on the prior year return to be credited against this year’s tax).

Line 1. Withholding Return Wages Line 7A. Balance Due
If Line 5 is greater than Line 6C, enter the difference here. Remittance in this
A calendar year taxpayer must use the workplace wages reported on their annual amount must accompany the return when filed. A business may round off cents.
Reconciliation of Income Tax Withheld (Form 17). A fiscal year taxpayer must use the
sum of the wages reported on the Form 11 withholding statements that correspond to
the fiscal year. Line 7B. Overpayment Claimed
If Line 6C is greater than Line 5, enter the difference here. This amount will be
transferred as a credit unless you request a refund. Amounts $10 or less will not be
Line 2. Explanation of Discrepancy refunded. If requesting a refund, please check the refund box on return
Provide an explanation on Line 2 if the overall discrepancy is: (1) greater than 10% of envelope to expedite processing of the refund.
the total workplace wages reported; and (2) greater than $5,000. If you are
reporting workplace wages for multiple RITA municipalities apply the 10% / $5,000
thresholds to each municipality. Line 8. Computation of Estimated Tax
Estimated tax payments are due on the fifteenth (15th) day of the fourth (4th)
sixth (6th), ninth (9th) and twelfth (12th) months of each fiscal year.
Line 3. Other Company Information
Provide the Company Name and Federal Identification Number under which the
withholding tax was remitted if different that information on page 1 of the Form 27. A. Enter the computed, estimated taxable income and tax for each municipality
in the space provided next to the name of that municipality. Then place the
total estimated taxes on Line 8A.
Schedule Z. Pass-Through Distributive Shares

of Net Income B. Credit from prior year: If upon completion of your annual net profit
All pass-through entities must attach a schedule showing each partner/shareholder Form 27 you have accrued a credit and did not request a refund, you may
name, social security number, distributive share, guaranteed payments (if applicable) take that credit on Line 8B. Otherwise, place a zero on this line.
and ow ner s h i p percentage. The amounts reported on this schedule must
correspond with the amounts reported on your federal return.
D. Enter the amount of estimated tax to be paid with this return. For your
Schedule ZZ: Consolidated Returns convenience, you may pay the full amount of total estimated tax due, (Line 8C)
Taxpayers filing consolidated returns must attach Federal Form 851 or a schedule with this declaration. Otherwise, 1/4 of the estimated tax due must be remitted
listing the name, address and employer identification number of each affiliate included with this declaration and the remaining amount will be billed.
in the consolidated return when filing their Form 27. Once an election is made to file a
consolidated return, permission is needed to file separately in future years. For tax years For each RITA municipality owed, if your estimated payments are not 90%
beginning on or after January 1, 2016, consolidated filers have a five year opt-in/out of the tax due or are not equal to or greater than your prior year’s total
window for changing from consolidated to single filing, or vice versa, and can elect each tax liability, you will be subject to penalty and interest charges. Quarterly
year to include or exclude income from 80% PTE ownership from the consolidated payments of estimated tax must be made to each RITA municipality if
group. Please see ORC §718.06 for more information on municipal income tax the anticipated amount owed is greater than or equal to $200.

consolidated return requirements.
Line 9. Total Due
Print your federal employer identification number on your check or money order
Line 3D. Post Apportioned Net Operating Loss and make it payable to RITA. Sign and date Form 27 in the space provided.
Enclose your check or money order with the Form 27 along with a copy of the

For Tax Year 2022, only two RITA municipalities allow a net operating loss to be federal return and supporting schedules as indicated below.
carried forward greater than five (5) years for tax years beginning prior to 1/1/17
JEWETT allows a net operating loss to be carried forward for a maximum of seven WHAT TO ATTACH TO YOUR RETURN:
(7) years for tax years beginning prior to 1/1/17. Attach a complete copy of the Federal Form 1041, 1065, 1120, 1120-A, 1120-

MCDONALD allows a net operating loss to be carried forward for a maximum of REIT, or 1120S as appropriate. Also attach copies of Schedule D, Schedule E,
ten (10) years for tax years beginning prior to 1/1/17. F or m 1 12 5 - A, Form 4562, Form 4797, Form 8825, and any supporting
statements for “other income”, “taxes and licenses”, “other expenses”, and Form
1125-A “other costs”. If applicable, attach copies of any K-1 schedules issued or
received. If filing a consolidated return, attach copies of your federal consolidation
schedules. If you issued any 1099-NEC forms, please attach copies of t ho s e
issued to Ohio residents. Note: The federal return MUST be attached to be
considered a complete tax return. Please also attach all applicable
schedules and 1099-NEC to avoid delays.

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Joint Economic Districts (JEDDs) or Joint Economic Development Districts (JEDZs)
Most RITA revenue sharing districts (JEDDs and JEDZs) require taxpayers to file annual Net Profit returns separately from the related municipal tax authority, meaning net profits must
be allocated to revenue sharing districts as if the districts are separate, stand-alone municipalities. However, the following JEDDs or JEDZ require that you file the annual Net Profit
return with the related tax authority
JEDD or JEDZ ______ Tax Authority
Beachwood East JEDD Beachwood
Beachwood West JEDD Beachwood
Orange Chagrin Highland JEDD Orange

Worksheet for Line 3B through Line 4. Pre-Apportioned Losses from Tax Years Beginning on or
After 1/1/17. If you check the box at Line 3B, attach a schedule that shows the net operating loss and how it is being utilized. The schedule is subject to
review. Below is an example of this method and sample worksheet. NOL PHASE-IN EXCEPTIONS: For municipalities and taxing jurisdictions that first imposed a tax
on or after January 1, 2016, net operating loss carryforward amounts are not phased-in and may be used in full. The following municipalities and taxing jurisdictions
imposed a tax on or after January 1, 2016: ALEXANDRIA, AMELIA, ASHLEY, BETHEL, BLOOMVILLE, BRIDGEPORT, BURBANK, CHESTERVILLE, CIRCLEVILLE-
PICKAWAY TWP JEDD, CLARKSVILLE, DARBYVILLE,, DORR STREET JEDD, ETNA-REYNOLDSBURG JEDD 1, ETNA-REYNOLDSBURG JEDD 2, ETNA-
REYNOLDSBURG JEDD 3, ETNA REYNOLDSBURG JEDD 4, ETNA-REYNOLDSBURG JEDD 7, FULTON, GETTYSBURG, HANOVER, HELENA, HOLLAND SPRINGFIELD
TWP JEDZ, JACKSON, KIRKERSVILLE, LATTY, LODI, LYONS, MARENGO, MILFORD JEDD V, MILFORD JEDD VI, MILFORD JEDD VII, MILLERSPORT, NEWTONSVILLE,
NEY, OSTRANDER, PAYNE, RISINGSUN, SHALERSVILLE TWP JEDD, SHARON TWP JEDD, SMITHFIELD, SOUTH VIENNA, ST. LOUISVILLE, STOUTSVILLE,
WASHINGTONVILLE, WAYNE LAKES, WILLIAMSBURG JEDD, WILLIAMSPORT.
Column 1 Column 2 Column 3 Column 4
Enter Municipality Name EXAMPLE Municipality #1 Municipality #2 Municipality #3 Total

Enter Adjusted Federal Taxable Income (AFTI) from Tax Year
1. 2022 Form 27, Page 1, Line 3A. $ 50,000
Enter Apportionment % from Schedule Y, Step 5. Enter the
2. total of all percentages on Page 1, line 3C%. 25 %
Row 1 multiplied by Row 2, this is the Apportioned Income and
ENTER Total (Column 4) on Tax Year 2022 Form 27, Page 1,
3. Line 3C. 12,500
Enter Post Apportioned Loss Utilized (from NOL schedule -
attach to your form). ENTER Total (Column 4) on Tax Year
4. 2022 Form 27, Page 1, Line 3D. $ 2,000

5. Row 3 less Row 4. $ 10,500

Divide Row 5 by Row 2 to calculate the gross amount of
6. income that must be used in this calculation. 42,000

7. Enter Pre-Apportioned Net Operating Loss $ 1,000
50% of the lesser of Row 7 or Row 6. ENTER the
HIGHEST dollar amount on Tax Year 2022 Form
8. 27, Page 1, Line 3Bii. NOTE: DO NOT ENTER
AMOUNTS from a RITA municipality on the NOL-
PHASE-IN EXCEPTIONS list, leave blank. $ 500

If there is an amount in Row 8, ENTER the difference of Row 6
less Row 8. Cannot be less than zero. If Row 8 is blank, enter
9. the difference of Row 6 less Row 7. ENTER Total (Column 4)
of Row 9 on Tax Year 2022 Form 27, Page 1, Line 3B(iii). $ 41,500
Row 9 multiplied by Row 2 for the Apportioned Income after
net operating loss. ENTER Total (Column 4) on Tax Year
10. 2022 Form 27, Page 1, Line 4. Enter each municipality on
Schedule B. $ 10,375

11. Enter Tax Rate of RITA Municipality 2 %

Row 10 multiplied by Row 11. ENTER Total (Column 4) on Tax
Year 2022 Form 27, Page 1, Line 5. Enter amounts for each
12. municipality on Schedule B. If the tax liability for a municipality
is $10 or less, enter a zero. in the tax due field of Schedule B. $ 208

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