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L-1040 RESIDENT INSTRUCTIONS B. The portion of any gains attributable to the time period before January
DOCUMENTATION REQUIREMENTS 1, 1967 on any sales or exchanges of property purchased prior to that
Copies of all Federal schedule(s) and other requested date.
documentation supporting income, losses and deductions must be C. Capital loss carryovers that originated in a year the taxpayer was not a
attached to your return. resident of the City are not deductible.
Failure to attach schedules and documentation or attaching
incomplete schedules and documentation will result in
deductions being disallowed or delay the processing of your LINE 8 – RENTAL REAL ESTATE, ROYALTIES, ESTATES,
return. TRUSTS, PARTNERSHIPS, ETC.
--On Page 2, line 30a enter all rental real estate and royalty income (or
LINE 1-EXEMPTIONS loss) included on your Federal Form 1040 Schedule 1 line 17 and
All individuals filing a Lapeer income tax return are allowed one received while a resident of Lapeer. Attach copies of Federal
personal exemption even if they are eligible to be claimed as a Schedule E page 1 and Federal Form 8582.
dependent on another filer’s return. On a joint return both individuals --Page 2, line 30b report your share of the partnership, trust, estate, etc.
are allowed one personal exemption. income (or loss) received while a resident of Lapeer. Enter only your
An individual who is 65 years of age or older may claim one share of ordinary income. Your share of interest, dividends, gains or
additional personal exemption. On a joint return, the taxpayer and/or losses, etc., are treated as belonging to you as an individual and should
the spouse, if they qualify, may claim an additional exemption for be reported accordingly. Attach copies of Federal Schedule E page 2,
being 65 years of age or older. Federal Form K-1 (1065) and Federal Form 8582.
Individuals who are legally blind may claim one additional personal Income from an estate or trust is taxable to a Lapeer resident and must
exemption. On a joint return, the taxpayer and/or the spouse, if they be included in the amount reported on page 1, line 8 regardless of the
qualify, may claim an additional exemption for being blind. location of the estate or trust, or the location of property it may own.
Individuals who are disabled (paraplegic, quadriplegic or hemiplegic, --Page 2, line 30c report all Subchapter S corporation distributions
or who is a totally or permanently disabled person) may claim one received while a resident of Lapeer from line 16, code D of Federal
additional personal exemption. On a joint return, the taxpayer and/or Schedule K-1. Attach copies of Federal Schedule K-1 (Form 1120S).
the spouse, if they qualify, may claim an additional exemption for Do not include gains, losses or other deductions from a Subchapter S
being disabled. corporation on this return. Subchapter S Corporation gains are not
taxable and losses are not deductible by a resident. All corporations
taxable under the City Income Tax Ordinance must file a Lapeer
LINE 2 & LINE 3- GROSS INCOME FROM EMPLOYERS Corporation income tax return.
All wages, salaries, tips, sick pay, bonuses, deferred compensation, --Add the amounts reported on page 2, lines 30a through 30c. Enter the
severance pay and other compensation earned while a resident of total on page 2, line 30d and page 1, line 8.
Lapeer are taxable regardless of where earned and must be
included in Column B, lines 2a through 2d. Use earnings from Box
1 of your W-2 NOT Box 18. Enter Lapeer income tax withheld by LINE 9 – OTHER INCOME
your employer in Column A, on line(s) 2a through 2d. Page 2, lines 31a through 31e are used to report other income including
Add columns A & B, lines 2a through 2d for wages and tax withheld, alimony received, lottery winnings, premature pension plan distributions
enter total on lines 3a and 3b. ATTACH W-2’S TO YOUR RETURN. (prior to qualifying for retirement) including distributions that are received
from qualified trusts upon termination of employment and receive
treatment as gains under the Federal Internal Revenue Code, any other
LINE 4 – INTEREST income reported on Federal Form 1099-R, and premature Individual
Enter interest from your Federal return minus interest from Retirement Account (IRA) distributions (Before age 59 ½) excluding
obligations of the United States and subordinate units of ROTH IRA conversions included in Federal adjusted gross income.
government. Interest received while a resident of Lapeer is taxable Normal distributions and pensions are not taxable. Attach a separate
regardless of where earned. schedule if more than five items are reported. Attach a copy of each
Form 1099-R.
LINE 5 – DIVIDENDS Add the amounts reported on page 2, lines 31a through 31e. Enter the
Enter dividends from your Federal return minus dividends from total on page 2, line 31f and on page 1, line 9.
obligations of the United States and subordinate units of
government. Dividends received while a resident of Lapeer are LINE 10 – TOTAL INCOME
taxable regardless of where earned. Add lines 3b through 9 and enter on line 10
LINE 6 – BUSINESS AND FARMING INCOME DEDUCTIONS:
(Complete lines 28a – 28f, page 2) IMPORTANT: The following deductions are limited to the amount
On page 2, line 28a; enter your Federal Schedule C net profit (or claimed on your Federal Form 1040 Schedule 1, except meals. The
loss). Lapeer residents are taxed on the net profits from their deductions are limited by the extent they apply to income taxable
operation of a business, a profession or farm, regardless of where it under the Lapeer Income Tax Ordinance. Part-year residents must
is located. Attach a complete copy of Federal Schedule C and/or allocate deductions the same way they allocate income.
Federal Schedule F.
Enter on line 28d the applicable portion of your net operating loss
carryover. A net operating loss (NOL) carryover may be deducted. The only deductions allowed by the Lapeer Income Tax Ordinance are as
Carryback losses are not allowed (Ord. Sec. 7(2)). Attach a follows:
schedule showing the calculation of any net operating loss carryover
deducted from line 28d. LINE 11 – INDIVIDUAL RETIREMENT ACCOUNT, KEOGH,
A SEP, SIMPLE or other qualified self-employment retirement plan SEP, OR SIMPLE RETIREMENT PLAN DEDUCTIONS
deduction must be entered on line 28e. Contributions to an Individual Retirement Account plan are deductible to
Multiply line 28a by line 28b put on line 28c. Add lines 28c and the same extent deductible under the Internal Revenue Code. Attach
subtract lines 28d and 28e. Enter the total on line 28f and on page Federal Form 1040 Schedule 1. ROTH IRA contributions are not
1, line 6. deductible.
LINE 7 – CAPITAL GAINS OR LOSSES LINE 12 – EMPLOYEE BUSINESS EXPENSES DEDUCTION
The Lapeer Income Tax Ordinance follows the Internal Revenue Employee business expenses are an allowable deduction only when
Code regarding capital gains. All capital gains received while a incurred in the performance of service for an employer and only to the
resident of Lapeer are taxable regardless of where the property is extent not reimbursed by the employer. Meal expenses are not subject to
located, with the following exceptions: the reductions and limitations of the Internal Revenue Code. Under the
A. Gains on sales of obligations of the United States and subordinate
units of government.
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