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INSTRUCTIONS FOR FILING FORM L-1120, CORPORATION INCOME TAX RETURN
OVERPAYMENT basis in determining or loss; or (2) by multiplying the loss
Line 15. If the total tax payments (line 13) is greater for the entire holding period, as computed for federal
than the tax (line 12) subtract line 12 from line 13 and income tax purposes, by a fraction, the numerator being
enter the overpayment. the number of months the property was held prior to the
effective date and denominator being the total number of
Line 16. Enter all or any portion of the overpayment months the property was held.
to be credited forward and applied as a payment
against the corporation’s tax liability for the subsequent Capital losses from U.S. Government obligations
tax year. included in income reported on page 1, line 1, are not
deductible. Remove these losses by including them in
Line 17. See If you wish to make a donation of the amount reported on line 3.
any portion or all of your overpayment, enter the
amount of the overpayment you wish to donate on Line 4. Reserved for future use.
lines 17a, 17b and/or 17c, otherwise leave blank. Line 5. Other. Enter on line 5a the losses from entities
Enter the total of the donations on line 17d. filing as partnerships included in taxable income reported
Lines 18 and 19. Enter the amount of your on page 1, line 1. Enter and explain on lines 5b and 5c,
overpayment to be refunded. A refund will be issued any other items deducted on the corporation’s federal
via a paper refund check unless you elect to receive return but not deductible on Lansing return.
the refund via direct deposit to the corporation’s bank
account. To elect to receive the refund via an Column 2 – Deduct – Items Not Taxable and
electronic direct deposit, mark (X) the box on line Allowable Deductions
19a, Refund – Direct Deposit and enter the bank Line 7. Enter the amount of interest income from
obligations of the United States, the states or
routing number (line 19c), the bank account number subordinate units of government of the state that is
(line 19d) and the account type, checking (line included in taxable income reported on page 1, line 1.
19e1) or savings (line 19e2).
DISCLOSURE OF RETURN INFORMATION Line 8. If you reported dividend income, enter on this line
the amount of the dividend-received deduction allowed
BETWEEN CITY AND PREPARER by the federal Internal Revenue Code for dividends
Line 20. By marking (X) the “Yes” box (line 20a), the
corporation is authorizing the applicable city income tax received.
department to: contact the preparer for answers to Lines 9 & 10. Taxpayers may deduct income, war profits
any questions that may arise relating to its return; and excess profits taxes imposed by foreign countries or
and answer any questions from the preparer about the possessions of the United States, allocable to income
return. Also, by marking (X) the “Yes” box (line included in taxable net income, any part of which would
20a), the corporation is authorizing the preparer to: be allowable as a deduction in determining federal
provide the applicable income tax department with taxable income under the applicable provisions of the
any information about or missing from the return; federal Internal Revenue Code.
contact the income tax department for information
about the return or the status of any related refund or If a foreign tax credit, rather than a foreign tax deduction,
payments; and respond to notices about math errors, was claimed on your federal return, enter on line 9 the
offsets and return preparation. portion of the foreign tax credit which was grossed up
and included in your corporation common return as
PAGE 2 INSTRUCTIONS dividends received.
SCHEDULE S Enter on line 10 the "foreign taxes paid or accrued"
Tax option corporations (S corporations, etc.) must file portion of the foreign tax credit claimed on the federal
as C corporations. Schedule S is used to reconcile the return, not in excess of the federal limitations. The
amount reported on Form L-1120, line 1, page 1, with the balance of your foreign tax credit is not deductible.
amounts on federal Form 1120S and Schedule K. Line 11. Enter on line 11 the nontaxable portion of a gain
SCHEDULE C – Adjustments prior to Apportionment from the sale or exchange of property acquired prior to
Column 1 – Add – Items Not Deductible the effective date of the tax. See Appendix A for effective
Line 1. Enter on line 1 all expenses (including interest dates. The portion of the gain occurring prior to the
expense) incurred in connection with the derivation of inception of the tax is not recognized. Refer to the
income not subject to the applicable city’s income tax. instructions for Schedule C, line 3 for computation
instructions.
Line 2. Enter on line 2 the amount of applicable city’s
income paid or accrued during the tax year. Capital gains from US Government obligations included
in income reported on page 1, line 1, are not taxable.
Line 3. Enter on line 3 the nondeductible portion of a Remove these gains by including them in the amount
loss from the sale or exchange of property acquired prior reported on line 11.
to the effective date of the tax. See Appendix A for
effective dates. The portion of the loss occurring prior to Line 12. Other Items not taxable. Enter on line 12a
the inception of the income tax is not recognized. The income from entities filing as partnerships included in
amount of loss occurring prior to the effective date of the taxable income reported on page 1, line 1. Enter on line
tax is determined by either (1) computing the difference 12b the amount of wages claimed as a credit on the
between the total gain or loss for the property as corporation’s federal income tax return.
reported for federal income tax purposes and the SCHEDULE D
applicable city taxable portion of the loss computed by The business allocation percentage formula must be
substituting the fair market value of the property on the used by corporations “doing business” both within and
effective date, (closing price for traded securities) for the
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