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CITY OF PONTIAC
FINANCE DEPARTMENT
INCOME TAX DIVISION
P.O. BOX 530
EATON RAPIDS, MI 48827-0530

City of Pontiac Income Tax                                         20229

Form P-1040 (NR)

Individual Return and Instructions for Non-Residents

            ALL PERSONS HAVING CITY TAXABLE INCOME 

                   EXCEEDING THEIR EXEMPTION DEDUCTION 

                           MUST FILE A RETURN.

                           MAILING ADDRESS:

BALANCE DUE RETURNS           ALL OTHER RETURNS
City of Pontiac 1040 Payments City of Pontiac Income Tax Division
P.O. Box 530                  P.O. Box 530
Eaton Rapids, MI 48827-0530   Eaton Rapids, MI 48827-0530

                           FOR ASSISTANCE:

                           VISIT THE INCOME TAX OFFICE AT CITY HALL
                           47450 WOODWARD AVE.
                           Pontiac, MI 48342
                           OR CALL (248) 758-3236

                           Note: We will not prepare your return.

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                    GENERAL INFORMATION                                            • Premature distribution of an Individual Retirement Account (IRA) when 
TEMPORARY CHANGES STILL FOR 2022                                                     a deduction(s) has been taken or from a deferred compensation plan 
  The Tax Cuts and Jobs Act enacted at the federal level has resulted in             such as a 401(k), 457, 403(b) or similar plans which reduced taxable 
changes to the calculation of Pontiac income tax as follows:                         wages on a Pontiac income tax return in previous year(s). 
   •  The moving expense deduction has been suspended, except for                     
         certain Armed Forces members.  See the federal instructions to            EXEMPT/NON-TAXABLE INCOME 
         see if you qualify for the deduction.                                       Exempt/non-taxable income includes: 
   •  The alimony deduction has been eliminated for payments required              • Gifts, inheritances and bequests. 
         under divorce or separation instruments executed after                    • Pensions (including disability pensions), Social Security benefits, 
         December 31, 2018.                                                          Railroad Retirement Act benefits, annuities, IRA and 401k distributions 
  Please contact the Pontiac Income Tax Division at (248) 758-3236 if you            after age 59 ½, and rollover of amounts from IRAs to ROTH IRAs. 
have any questions regarding what federal forms need to be attached.               • Proceeds from insurance (except that payments from a health and 
  DUE TO COVID-19 IMPACTING WORKPLACE PRACTICES, IF YOU                              accident policy paid for by your employer are taxable to the same 
WERE  DIRECTED  TO  WORK  REMOTELY  DURING  2022,  PLEASE                            extent as provided by the Internal Revenue Code). 
PREPARE AND SUBMIT THE  PONTIAC  COVID WORK ALLOCATION                             • Unemployment compensation, supplemental unemployment benefits, 
SCHEDULE  THAT CAN  BE FOUND ON  THE  CITY OF PONTIAC                                welfare relief payments. 
WEBSITE TOGETHER WITH OTHER FORMS.                                                 • Workers’ compensation, or similar payments for death, injury or illness 
                                                                                     arising out of and in the course of an employee’s job. 
WHO MUST FILE A RETURN                                                             • Interest, dividends, and other forms of intangible income.  (When the 
  For each taxable year, a return must be filed by each nonresident who              receipt of interest and other intangible income is part of the business, 
had income subject to Pontiac City income tax and exceeds your personal              such interest, etc. shall be considered as business income taxable to 
exemption amount. The return must be filed by the due date. See Taxable              nonresidents and reported on Schedule C.) 
Income paragraph below.                                                            • Military pay for members of the National Guard and the Armed Forces 
  Married persons may file either a joint return or separate returns.  The           of the United States. 
total Pontiac income of both spouses must be included on a joint return, and       • Income received by a nonresident as the result of disability after 
each spouse must sign the return.                                                    exhausting all vacation pay, holiday pay and sick pay. 
  If you do not meet the requirements for filing a return but Pontiac tax             
was withheld or estimated tax was paid, a return must be filed to claim a          DECLARATION OF ESTIMATED TAX 
refund.                                                                              If you expect that your Pontiac income in 2023, not subject to 
  A final return must be filed for any person who died during the year and         withholding, will be more than $20,000 after deductions ($100.00 in tax), you 
who is required to file as explained above. The executor, administrator,           must file a Declaration of Estimated Tax (form P-1040ES) for 2023 by April 
personal representative or survivor must file the final return and any other       30, 2023 and pay at least one-fourth (1/4) of the estimated 2023 tax with 
return due for the decedent. The return must be signed by the party filing the     your Declaration.  The three remaining payments are due at the end of 
return. If an executor administrator or personal representative has not been       June, September and January. This way you are paying your tax as it is 
appointed, the surviving spouse may file a joint return. The spouse must           earned. 
sign the return and add the notation “Surviving Spouse”. If a refund is due,         Failure to file a Declaration of Estimated Tax and make the required 
and the claimant is not the surviving spouse, Federal Form 1310 must be            payments will result in the assessment of penalty and interest for the 
filed together with the return.                                                    late payment of tax. 
  Each trust or estate with gross income of $600.00 or more subject to               To avoid penalty and interest charges, you must pay in through 
Pontiac income tax, must file.                                                     withholdings and/or quarterly estimated payments at least 70% of your 
                                                                                   current year or prior year tax liability, whichever is lower. 
WHO MUST USE THIS FORM                                                               If at any time during the year, your income increases to such a level that 
  Individuals who were nonresidents of the City of Pontiac during the              one hundred dollars (100.00) in tax or more will be due at the end of the 
entire year and worked in Pontiac must use this form.                              year, a Declaration of Estimated Tax must be filed. 
  An individual who was a resident of Pontiac during any part of the year            The Declaration of Estimated Tax Form P-1040ES is available from the 
must file form P-1040R (Resident form). See the form for specific                  City of Pontiac Income Tax Division or online at 
instructions. The forms are available from the Pontiac Income Tax Division,        www.pontiac.mi.us/departments/income_tax/index.php, and look for “Income 
or online at www.pontiac.mi.us/departments/income_tax/index.php and look           Tax” on the left side of the page. The mailing address for the payments, can 
for tax forms on the left side of the page.                                        be found on the forms. 
                                                                                                                       
EXTENSION OF TIME TO FILE 
  The due date to file this return may be extended for a period not to                              LINE BY LINE INSTRUCTIONS 
exceed six months.  When a city extension is granted, a tentative tax               
return must still be filed, and any tax owed must be paid by the original          HEADING – PERSONAL INFORMATION 
due date.  Applications to request an extension are available online at              Enter your name (and spouse’s name if filing a joint return), address, 
www.pontiac.mi.us/departments. It is the last form on that web page. The           birthdate and full Social Security Number(s). Enter the phone numbers for 
extension of time to file only applies to the filing of the tax return, not the    the primary taxpayer. If married, and your spouse is not filing on the joint 
payment of taxes.                                                                  return, answer the question by checking the appropriate box, and if filing a 
  Applying for a Federal extension does not satisfy the requirement                separate return, enter their Social Security Number in the space provided. 
to file a Pontiac request for an extension.                                         
                                                                                   SCHEDULE 1—EXEMPTIONS  ($600.00 each) 
TAXABLE INCOME                                                                     Lines 1-3 
  The following income is subject to tax:                                            All individuals filing a Pontiac income tax return are allowed one 
•  Compensation received for work done or services performed in                    personal exemption, unless they are claimed as a dependent on another 
   Pontiac—compensation includes, but is not limited to: salaries,                 filer’s return. On a joint return EACH individual is allowed one personal 
   bonuses, wages, commissions, sick pay, vacation pay, holiday pay,               exemption. 
   strike pay, incentive pay to leave employment or for “early retirement”,          Individuals who are 65 years of age or older as defined by the Internal 
   lump sum distribution of vacation pay, or sick pay, severance pay,              Revenue Code, may claim one additional personal exemption.  On a joint 
   employee savings plans, retirement stock purchase plans and profit              return either one or both individuals (if they qualify) may claim one additional 
                                                                                   exemption for being 65 years of age or older. 
   sharing plans.  (Please note that these examples do not cover                     Individuals, and/or their spouse, if they are legally blind (as defined in 
   every possible filing situation.  If you have any questions, please             section 206.504 of the Michigan Compiled Laws), may claim an additional 
   contact the City of Pontiac Income Tax Division at (248) 758-3236.)             personal exemption if they qualify 
•  That portion of net profits from the operation of a business or                   Dependents may also be claimed for a dependency exemption. If you 
   profession that is attributable to business activity conducted in Pontiac       can claim a dependent on the Federal Tax Form, you may claim the 
   whether or not such business or profession is located in Pontiac.               dependent on the Pontiac income tax form. Names and Social Security 
•  Net profits from rentals from real and tangible property located in             Numbers need to be included on the form. 
   Pontiac.                                                                         
•  Net profits on the sale or exchange of real and tangible personal                
   property located in Pontiac.                                                     

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SCHEDULE 2—WAGE DETAIL On line 6, deduct the applicable portion of a net operating loss carryover
Columns A, B and C from prior years. A net operating loss carry-over may be taken against the
Follow instruction (a) below if you performed all (100%) of your services current year’s net profit (or loss). You may not take a carry-back loss on
in Pontiac. Use instruction (b) below if you only performed part of your your Pontiac Income Tax return. Carry-back losses are specifically forbidden
services in Pontiac. Column B is where you enter Pontiac taxes withheld as by the Income Tax Ordinance (Section 7.2)
reported in Box 19 of your W2(s). On line 7, subtract the net operating loss from line 5, and enter this
(a) Nonresidents who worked 100% of their time in Pontiac: Enter in result on Schedule 5, line 1c.
Column A and Column C the full amount of your earnings as
recorded in box 1 of your W-2 statement. WORKSHEET 2. Used to determine a percentage for allocation of net
(b) Nonresidents who only performed part of their services in Pontiac: profit (or loss) as applicable to the City of Pontiac. This will be based on
Enter in Column A the full amount of your earnings as recorded in figures solely within the City of Pontiac and to the company as a whole.
box 1 of your W-2 statement. Compute the amount to be entered
in Column C by completing Schedule 4. On line 8 column A enter the average net book value of all real and
tangible property owned by the business, regardless of location. In column
SCHEDULE 3—PAYMENTS B, enter the average net book value of real and tangible property owned and
Line 1—Tax withheld by your employer located in the City. The average net book value may be determined by
Enter the amount of Pontiac tax withheld as shown on your W-2 adding the net book value at the beginning of the year to the net book value
statement(s). The City copy of your W-2 statement, showing clearly the at the end of the year, and dividing the sum by two.
amount of Pontiac tax withheld must be submitted with your return before On line 8a, enter in column A the gross annual rent multiplied by 8 for all
credit can be allowed for Pontiac tax withheld. rented real property regardless of location. In column B, show the gross
Line 2—Estimated payments, credit from a prior year, extension payments annual rent multiplied by 8 for rented real property located in the City. Gross
If you made a payment(s) on a 2022 City of Pontiac Declaration of annual rent must include money and other consideration given for the use or
Estimated Tax (Form P-1040ES), applied an overpayment from your 2021 possession of real property rented or leased.
Pontiac return to 2022, or made a payment with an extension/tentative On line 8b, add the amounts from line 8 to the amounts on line 8a and
return, enter the total of all payments on line 2. In addition, enter any determine the Pontiac related percentage by dividing column B by column A
Pontiac income tax paid on your behalf by a partnership of which you are a On line 9 column A enter the total compensation paid to all employees
partner. Please indicate in the space to the right of the amount, a note that during the year. In column B, show the compensation paid to employees for
the payment was made by a partnership and the partnership federal Tax work or services performed within the City of Pontiac. Determine the Pontiac
Identification Number. related percentage by dividing column B by column A.
Line 3—Total payments. On line 10 enter in column A the total gross revenue from all sales or
Add the amounts from line 1 and line 2 and enter the result on this line, AND services rendered during the year. In column B show the total amount of
enter this amount on line 8 of the RETURN SUMMARY portion of the form. revenue derived from sales made or services rendered in the City. Rental
This is the total amount paid on your Pontiac income tax prior to filing your income is considered to be derived from services rendered, and must be
return. included in gross receipts. Determine the Pontiac related percentage by
dividing column B by column A,
SCHEDULE 4—WAGES EARNED IN PONTIAC On line 11, add the percentages from lines 8b, 9 and 10.
Complete this schedule only if you worked both in and out of Pontiac for the On line 12, determine the average percentage by dividing the amount
same employer. If you were paid for 52 weeks, and 5 days per week, enter on line 11 by three (3) unless one of the factors does not exist anywhere,
260 days on line 1. On line 2, enter how much time you did not work such then divide by the number of factors actually used. Enter this figure on line 4
as vacation, holiday and sick time. Line 3 refers to the total amount of time of Worksheet 1 (see instructions above)
worked everywhere, so subtract line 2 from line 1. Line 4 refers to the
amount of time worked while inside Pontiac. Line 5 is used to allocate your SCHEDULE 5—OTHER INCOME/LOSS (continued)
W2 income based on the percentage of time worked inside Pontiac in Line 2—Income/loss from rents/royalties (for filers of Federal Schedule E,
relation to time worked everywhere. Line 6 uses the total wages earned from page 1)
this employer (Box 1 on the W-2, NOT Box 18). Line 7 is the result of If you have rent/royalty income/loss from property located in Pontiac,
multiplying line 6 by line 5, and enter this figure in column C of SCHEDULE enter the applicable amount from your Federal Schedule E, page 1 on line 2
2 for the appropriate employer. NOTE: Hours may be substituted for days. of Schedule 5. Copies of all federal schedules must be attached.
Instead of using days worked, employees paid on a commission basis Line 3—Income/loss from partnerships (for filers of Federal Schedule E,
should multiply their wages by the ratio of commissions earned in Pontiac to page 2)
the total of commissions earned everywhere. Partnerships engaged in business activity in the City of Pontiac are
required to file Pontiac Partnership returns (form P-1065, or CF-1065).
SCHEDULE 5—OTHER INCOME/LOSS Report your share of the partnership income/loss on line 3 of Schedule 5.
The federal rules concerning passive losses are applicable to losses Enter your share of ordinary income only. Your share of qualifying dividends,
deducted on this return. capital gains, interest, etc. are treated as belonging to you as an individual.
Line 1—Income/loss from business (for filers of Federal Schedule C) A partner is not allowed to apportion income distributed by a
You must attach a copy of Federal Schedule C if income is subject to partnership. All apportionment of distributed income must be made on the
taxation by the City of Pontiac.. Pontiac Partnership Return, form P-1065 or CF-1065.
If your Schedule C business is operated entirely within Pontiac, enter Corporations are not permitted to file as so-called “tax-option (Sub-
your Schedule C income/loss on line 1a. Enter your SEP deduction, if chapter S) corporations. Every corporation subject to City income taxes
applicable, on line 1b. Subtract line 1b. from 1a. and enter the result on line must file a Pontiac Corporation Return (P-1120 or CF-1120). The taxable
1c. If you have deducted a SEP contribution on line 1b. you must attach gain or loss of a corporation shall not be prorated to the shareholders and
a copy of Schedule 1 of your Federal Form 1040. nor reported on their City of Pontiac individual returns.
If your Schedule C business is operated partly within Pontiac and If you are a shareholder in a corporation that has elected to file under
partly outside Pontiac, complete Worksheets 1 and 2 on page 2 to calculate Subchapter S of the Internal Revenue Code, you are not required to report
the amount to be entered on line 1. any distributed income nor may you deduct your share of any loss or other
If your Schedule C business is operated entirely outside of Pontiac, do deductions distributed by the corporation.
not enter an amount on line 1a or 1b. Line 4—Income/loss from sale or exchange of property (for filers of Federal
Schedule D or Form 4797)
WORKSHEET 1. Only for use with a business that operates partly Enter on line 4 the gain/loss from the sale or exchange of real or
inside and outside the City of Pontiac. (If your business operates entirely in tangible personal property located in Pontiac, and are treated in the same
the City, go to Schedule 5, line 1a.) manner, and the amount subject to tax determined on the same basis as
On line 1, enter the net profit (or loss) from your business or profession. under the Federal Internal Revenue Code in its treatment of capital gains.
You must attach a copy of your Federal Schedule C. All capital gains received from the sale or exchange of real or tangible
On line 2, if you claim a federal SEP retirement plan deduction, enter personal property located within the City of Pontiac are fully taxable on this
the amount from your federal return here. return at the non-resident tax rate.
On line 3, subtract line 2 from line 1. Attach Federal Schedule D and Form 8949. Also attach Form 4797
On line 4, will be the percentage from line 12 on worksheet 2 as and Form 6252 if applicable.
explained below. Line 5—Premature Pension/IRA/401k distribution(s)
On line 5, enter the result from multiplying line3 by line 4.

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Enter on line 5 premature distributions (before age 59 ½) from an COMPLETING YOUR RETURN
IRA/401k plan when a deduction has been taken on a current or previous After completing schedules 1 through 6 as applicable, transfer the
year’s Pontiac Income Tax return and/or premature distributions from a results of schedules 1 through 6 to lines 1, 2, 3, 5 and 8 on the front of the
pension. If you have completed Schedule 4, apply the percentage on form (Return Summary section).
Schedule 4, Line 5 to your total distribution and enter the taxable portion of Follow the instructions on the front of the form for lines 4, 6 and 7.
the distribution on line 5 of Schedule 5. Provide a copy of form 1099-R with
the return. Line 9—Tax due
If after computing your Pontiac Income tax and deducting your
SCHEDULE 6—DEDUCTIONS—All of the following deductions are limited payments and credits, line 7 exceeds line 8, you have an additional income
to the extent they apply to income earned in Pontiac, and are limited to the tax liability due to the City of Pontiac. If the tax due is one dollar ($1.00) or
amount taken on your federal return. The only deductions allowed by the more, it must be entered on Line 9, and should be paid by the due date of
Income Tax Ordinance are listed below in Schedule 6 instructions. this return.
Line 1—Individual Retirement Account (IRA) deduction Make check or money order payable to CITY OF PONTIAC and mail
Contributions to your deductible individual retirement account. ATTACH with this return to: CITY OF PONTIAC 1040 PAYMENTS; P.O. BOX 530,
PROOF OF DEDUCTIBILITY, which includes, but is not limited to: a copy of EATON RAPIDS, MI 48827-0530. Do not send cash through the mail. Cash
receipt for traditional IRA contribution, a copy of federal form 5498, copy of payments can only be made in person at the Treasurer’s Office in City Hall.
cancelled check that clearly indicates it is for an IRA contribution, as allowed 1. For direct electronic withdrawal, mark line 14b. “Pay tax due-direct
on Federal 1040 Schedule 1. Contributions to ROTH IRAs are not withdraw”, and complete lines 14c, d, and e. The withdrawal date will
deductible. If your earned income on which the federal IRA deduction is be the date the return is processed. If authorizing a withdrawal from
based is earned both in and out of Pontiac, you must apportion your IRA your account of the amount due on line 9, go to line 14b, c, d, and e
deduction regardless of whether the income is from a single employer or and complete the routing number, type of account and account number
multiple employers. boxes provided If there are questions about your return, withdrawals
Attach Schedule 1 of Federal Form 1040. will be processed when all matters involving the return have been
A SEP retirement plan deduction must be entered on line 1b of resolved.
Schedule 5.
Line 2—Employee business expenses Line 10—Overpayment
The employee business expenses listed below are not subject to the If your total payments and credits on line 8 are more than Pontiac Tax
same reductions and limitations required under the Internal Revenue Code. on line 7, you have overpaid your tax for 2022. Enter this amount on line 10.
These expenses are, however, allowed only to the extent not paid or 1. If you want all or part of your overpayment to be HELD and applied to
reimbursed by your employer and only when incurred in the performance of your 2023 estimated tax, enter the amount of overpayment to be
service for your employer. credited forward on line 11.
The only deductions allowed by the City of Pontiac Income Tax 2. If you want a portion of your overpayment to be DONATED to City of
Ordinance are limited to the following: Pontiac, enter the amount you choose to donate on line 12.
• Expenses of travel, meals and lodging while away from home 3. A. If you want your overpayment MAILED to you, enter the
• Expenses as an outside salesperson who works away from his overpayment on line 13.
employer’s place of business (does not include driver/salesperson B. If you want your overpayment REFUNDED VIA DIRECT DEPOSIT,
whose primary duty is service and delivery). enter the overpayment on line 13 and complete the routing number,
• Expenses of transportation (but not transportation to and from type of account and account number boxes provided in line 14.
work). Refunds will be issued when all matters involving the return have been
• Expenses reimbursed under an expense account or other resolved
arrangement with your employer, if the reimbursement has been
included in reported gross earnings. Refunds or credits of less than one dollar ($1.00) cannot be made.
You must attach a detailed list of your employee business expenses.
THIRD PARTY DESIGNEE
Line 3—Moving expenses If you want to allow a friend, family member or any other person you
Under the Tax Cuts and Jobs Act of 2017, moving expenses have been choose to discuss your tax return with the Income Tax Division, give the
suspended through December 31, 2025 except for taxpayers who are Division any information missing from your return, receive copies of notices
members of the military on active duty and who move pursuant to a military and/or respond to notices about math errors, offsets and return preparation,
order. If you qualify for this deduction, you must attach a copy of Federal check the “Yes” box in the designated area. Enter the designee’s name and
Form 3903 or a list of your moving expenses, including the distance in miles phone number. To designate the preparer who signed your return, enter
from where you moved. However, the Pontiac deduction is limited to those “Preparer” in the space for designee’s name.
expenses that are applicable to income taxable under the City of Pontiac
Income Tax Ordinance, and only if moving into the Pontiac area. ASSISTANCE
If you have questions not answered in these instructions or if you need
Line 7—Alimony deduction (CHILD SUPPORT IS NOT DEDUCTIBLE) assistance in preparing your return, call (248) 758-3236.
As stated earlier, the Tax Cuts and Jobs Act of 2017 eliminates the We will not prepare your return for you.
deductibility of alimony payments for divorce or separation agreements that Questions by mail should be directed to: City of Pontiac Income Tax
are executed (or modified) after December 31, 2018. If the agreement was Division, PO. Box 530, Eaton Rapids, MI 48827-0530.
prior to December 31, 2018, the following rules still apply.
Alimony deducted on your 2022 federal return is subject to adjustment If you have access to the internet, tax forms and instructions can be
before it may be deducted on this return. The alimony adjustment is found at www.pontiac.mi.us/departments/income_tax/index.php and look for
computed as follows: “Income Tax” on the left side of the page.
Pontiac Income (Line 4, Page 1)
(without alimony deduction) X Alimony Paid NOTICE
Federal Adjusted Gross Income These instructions are an interpretation of the Pontiac City Income Tax
(without alimony deduction) Ordinance. If any discrepancy exists between the instructions and the
You must attach a copy of page 1 and Schedule 1 of your Federal Form Ordinance, the Ordinance prevails.
1040.
A copy of the federal schedules and other requested documentation
supporting deductions must be attached. Failure to attach schedules and
documentation or attaching incomplete schedules and documentation will
result in deductions being disallowed or delay the processing of your return
until proper documentation is obtained.

If any due date for filing or making a payment falls on a weekend or
holiday, the due date automatically becomes the next business day.

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