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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                                         20209

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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reported in Box 19 of your W2(s).                                                   wages on a Pontiac income tax return in previous year(s). 
services in Pontiac. Column B is where you enter Pontiac taxes withheld as          such as a 401(k), 457, 403(b) or similar plans which reduced taxable 
in Pontiac.  Use instruction (b) below if you only performed part of your           a deduction(s) has been taken or from a deferred compensation plan 
Follow instruction (a) below if you performed all (100%) of your services           Premature distribution of an Individual Retirement Account (IRA) when      •
                                                 Columns A, B and C                               property located in Pontiac. 
SCHEDULE 2—WAGE DETAIL                                                              Net profits on the sale or exchange of real and tangible personal          •
                                                                                                                                      Pontiac.
Numbers need to be included on the form.                                            Net profits from rentals from real and tangible property located in        •
dependent on the Pontiac income tax form. Names and Social Security                 whether or not such business or profession is located in Pontiac. 
can claim a dependent on the Federal Tax Form, you may claim the                    profession that is attributable to business activity conducted in Pontiac 
Dependents may also be claimed for a dependency exemption. If you                   That portion of net profits from the operation of a business or            •
personal exemption if they qualify                                                  contact the City of Pontiac Income Tax Division at (248) 758-3236.)
section 206.504 of the Michigan Compiled Laws), may claim an additional             every possible filing situation.  If you have any questions, please 
Individuals, and/or their spouse, if they are legally blind (as defined in          (Please note that these examples do not cover     sharing plans.
exemption for being 65 years of age or older.                                       employee savings plans, retirement stock purchase plans and profit 
return either one or both individuals (if they qualify) may claim one additional    lump sum distribution of vacation pay, or sick pay, severance pay, 
Revenue Code, may claim one additional personal exemption.  On a joint              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             bonuses, wages, commissions, sick pay, vacation pay, holiday pay, 
                                                         exemption.                 Pontiac—compensation includes, but is not limited to: salaries, 
filer’s return. On a joint return EACH individual is allowed one personal           Compensation received for work done or services performed in               •
personal exemption, unless they are claimed as a dependent on another                             The following income is subject to tax:                       
All individuals filing a Pontiac income tax return are allowed one                                      TAXABLE INCOME 
                                                         Lines 1-3 
SCHEDULE 1—EXEMPTIONS  ($600.00 each)                                                             to file a Pontiac request for an extension. 
                                                                                    Applying for a Federal extension does not satisfy the requirement 
separate return, enter their Social Security Number in the space provided.                                                            payment of taxes. 
return, answer the question by checking the appropriate box, and if filing a        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        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             Applications to request an extension are available online at due date.
Enter your name (and spouse’s name if filing a joint return), address,              return must still be filed, and any tax owed must be paid by the original 
HEADING – PERSONAL INFORMATION                                                      When a city extension is granted, a tentative tax exceed six months.  
                                                                                    The due date to file this return may be extended for a period not to        
LINE BY LINE INSTRUCTIONS                                                                         EXTENSION OF TIME TO FILE 

                                                 be found on the forms.                           for tax forms on the left side of the page. 
Tax” on the left side of the page. The mailing address for the payments, can        or online at www.pontiac.mi.us/departments/income_tax/index.php and look 
www.pontiac.mi.us/departments/income_tax/index.php, and look for “Income            instructions. The forms are available from the Pontiac Income Tax Division, 
City of Pontiac Income Tax Division or online at                                    must file form P-1040R (Resident form). See the form for specific 
The Declaration of Estimated Tax Form P-1040ES is available from the                An individual who was a resident of Pontiac during any part of the year     
year, a Declaration of Estimated Tax must be filed.                                 entire year and worked in Pontiac must use this form. 
one hundred dollars (100.00) in tax or more will be due at the end of the           Individuals who were nonresidents of the City of Pontiac during the 
If at any time during the year, your income increases to such a level that                        WHO MUST USE THIS FORM 
current year or prior year tax liability, whichever is lower. 
withholdings and/or quarterly estimated payments at least 70% of your                             Pontiac income tax, must file. 
To avoid penalty and interest charges, you must pay in through                      Each trust or estate with gross income of $600.00 or more subject to 
                                                 late payment of tax.                             filed together with the return. 
payments will result in the assessment of penalty and interest for the              and the claimant is not the surviving spouse, Federal Form 1310 must be 
Failure to file a Declaration of Estimated Tax and make the required                sign the return and add the notation “Surviving Spouse”. If a refund is due, 
                                                         earned.                    appointed, the surviving spouse may file a joint return. The spouse must 
June, September and January. This way you are paying your tax as it is              return. If an executor administrator or personal representative has not been 
your Declaration.  The three remaining payments are due at the end of               return due for the decedent. The return must be signed by the party filing the 
 one-fourth (1/4) of the estimated 2021 tax with at least30, 2021 and pay           personal representative or survivor must file the final return and any other 
must file a Declaration of Estimated Tax (form P-1040ES) for 2021 by April          who is required to file as explained above. The executor, administrator, 
withholding, will be more than $20,000 after deductions ($100.00 in tax), you       A final return must be filed for any person who died during the year and 
If you expect that your Pontiac income in 2021, not subject to                                                                                     refund.
DECLARATION OF ESTIMATED TAX                                                        was withheld or estimated tax was paid, a return must be filed to claim a 
                                                                                    If you do not meet the requirements for filing a return but Pontiac tax     
exhausting all vacation pay, holiday pay and sick pay.                                            each spouse must sign the return. 
Income received by a nonresident as the result of disability after          •       total Pontiac income of both spouses must be included on a joint return, and 
of the United States.                                                               Married persons may file either a joint return or separate returns.  The 
Military pay for members of the National Guard and the Armed Forces         •                     Income paragraph below. 
nonresidents and reported on Schedule C.)                                           exemption amount. The return must be filed by the due date. See Taxable 
such interest, etc. shall be considered as business income taxable to               had income subject to Pontiac City income tax and exceeds your personal 
receipt of interest and other intangible income is part of the business,            For each taxable year, a return must be filed by each nonresident who 
Interest, dividends, and other forms of intangible income.  (When the       •                     WHO MUST FILE A RETURN 
arising out of and in the course of an employee’s job. 
Workers’ compensation, or similar payments for death, injury or illness     •       have any questions regarding what federal forms need to be attached. 
welfare relief payments.                                                            Please contact the Pontiac Income Tax Division at (248) 758-3236 if you     
Unemployment compensation, supplemental unemployment benefits,              •                     December 31, 2018. 
extent as provided by the Internal Revenue Code).                                   executed afterunder divorce or separation instruments 
accident policy paid for by your employer are taxable to the same                     The alimony deduction has been eliminated for payments required •
Proceeds from insurance (except that payments from a health and             •                     see if you qualify for the deduction. 
after age 59 ½, and rollover of amounts from IRAs to ROTH IRAs.                     certain Armed Forces members.  See the federal instructions to 
Railroad Retirement Act benefits, annuities, IRA and 401k distributions               The moving expense deduction has been suspended, except for •
Pensions (including disability pensions), Social Security benefits,         •       changes to the calculation of Pontiac income tax as follows: 
Gifts, inheritances and bequests.                                           •       The Tax Cuts and Jobs Act enacted at the federal level has resulted in 
Exempt/non-taxable income includes:                                                                                                   NEW FOR 2020 
EXEMPT/NON-TAXABLE INCOME                                                           GENERAL INFORMATION

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(a) Nonresidents who worked 100% of their time in Pontiac: Enter in On line 7, subtract the net operating loss from line 5, and enter this
Column A and Column C the full amount of your earnings as result on Schedule 5, line 1c.
recorded in box 1 of your W-2 statement.
(b) Nonresidents who only performed part of their services in Pontiac: WORKSHEET 2. Used to determine a percentage for allocation of net
Enter in Column A the full amount of your earnings as recorded in profit (or loss) as applicable to the City of Pontiac. This will be based on
box 1 of your W-2 statement. Compute the amount to be entered figures solely within the City of Pontiac and to the company as a whole.
in Column C by completing Schedule 4.
On line 8 column A enter the average net book value of all real and
SCHEDULE 3—PAYMENTS tangible property owned by the business, regardless of location. In column
Line 1—Tax withheld by your employer B, enter the average net book value of real and tangible property owned and
Enter the amount of Pontiac tax withheld as shown on your W-2 located in the City. The average net book value may be determined by
statement(s). The City copy of your W-2 statement, showing clearly the adding the net book value at the beginning of the year to the net book value
amount of Pontiac tax withheld must be submitted with your return before at the end of the year, and dividing the sum by two.
credit can be allowed for Pontiac tax withheld. On line 8a, enter in column A the gross annual rent multiplied by 8 for all
Line 2—Estimated payments, credit from a prior year, extension payments rented real property regardless of location. In column B, show the gross
If you made a payment(s) on a 2020 City of Pontiac Declaration of annual rent multiplied by 8 for rented real property located in the City. Gross
Estimated Tax (Form P-1040ES), applied an overpayment from your 2019 annual rent must include money and other consideration given for the use or
Pontiac return to 2020, or made a payment with an extension/tentative possession of real property rented or leased.
return, enter the total of all payments on line 2. In addition, enter any On line 8b, add the amounts from line 8 to the amounts on line 8a and
Pontiac income tax paid on your behalf by a partnership of which you are a determine the Pontiac related percentage by dividing column B by column A
partner. Please indicate in the space to the right of the amount, a note that On line 9 column A enter the total compensation paid to all employees
the payment was made by a partnership and the partnership federal Tax during the year. In column B, show the compensation paid to employees for
Identification Number. work or services performed within the City of Pontiac. Determine the Pontiac
Line 3—Total payments. related percentage by dividing column B by column A.
Add the amounts from line 1 and line 2 and enter the result on this line, AND On line 10 enter in column A the total gross revenue from all sales or
enter this amount on line 8 of the RETURN SUMMARY portion of the form. services rendered during the year. In column B show the total amount of
This is the total amount paid on your Pontiac income tax prior to filing your revenue derived from sales made or services rendered in the City. Rental
return. income is considered to be derived from services rendered, and must be
included in gross receipts. Determine the Pontiac related percentage by
SCHEDULE 4—WAGES EARNED IN PONTIAC dividing column B by column A,
Complete this schedule only if you worked both in and out of Pontiac for the On line 11, add the percentages from lines 8b, 9 and 10.
same employer. If you were paid for 52 weeks, and 5 days per week, enter On line 12, determine the average percentage by dividing the amount
260 days on line 1. On line 2, enter how much time you did not work such on line 11 by three (3) unless one of the factors does not exist anywhere,
as vacation, holiday and sick time. Line 3 refers to the total amount of time then divide by the number of factors actually used. Enter this figure on line 4
worked everywhere, so subtract line 2 from line 1. Line 4 refers to the of Worksheet 1 (see instructions above)
amount of time worked while inside Pontiac. Line 5 is used to allocate your
W2 income based on the percentage of time worked inside Pontiac in SCHEDULE 5—OTHER INCOME/LOSS (continued)
relation to time worked everywhere. Line 6 uses the total wages earned from Line 2—Income/loss from rents/royalties (for filers of Federal Schedule E,
this employer (Box 1 on the W-2, NOT Box 18). Line 7 is the result of page 1)
multiplying line 6 by line 5, and enter this figure in column C of SCHEDULE If you have rent/royalty income/loss from property located in Pontiac,
2 for the appropriate employer. NOTE: Hours may be substituted for days. enter the applicable amount from your Federal Schedule E, page 1 on line 2
Instead of using days worked, employees paid on a commission basis of Schedule 5. Copies of all federal schedules must be attached.
should multiply their wages by the ratio of commissions earned in Pontiac to Line 3—Income/loss from partnerships (for filers of Federal Schedule E,
the total of commissions earned everywhere. page 2)
Partnerships engaged in business activity in the City of Pontiac are
SCHEDULE 5—OTHER INCOME/LOSS required to file Pontiac Partnership returns (form P-1065, or CF-1065).
The federal rules concerning passive losses are applicable to losses Report your share of the partnership income/loss on line 3 of Schedule 5.
deducted on this return. Enter your share of ordinary income only. Your share of qualifying dividends,
Line 1—Income/loss from business (for filers of Federal Schedule C) capital gains, interest, etc. are treated as belonging to you as an individual.
You must attach a copy of Federal Schedule C if income is subject to A partner is not allowed to apportion income distributed by a
taxation by the City of Pontiac.. partnership. All apportionment of distributed income must be made on the
If your Schedule C business is operated entirely within Pontiac, enter Pontiac Partnership Return, form P-1065 or CF-1065.
your Schedule C income/loss on line 1a. Enter your SEP deduction, if Corporations are not permitted to file as so-called “tax-option (Sub-
applicable, on line 1b. Subtract line 1b. from 1a. and enter the result on line chapter S) corporations. Every corporation subject to City income taxes
1c. If you have deducted a SEP contribution on line 1b. you must attach must file a Pontiac Corporation Return (P-1120 or CF-1120). The taxable
a copy of Schedule 1 of your Federal Form 1040. gain or loss of a corporation shall not be prorated to the shareholders and
If your Schedule C business is operated partly within Pontiac and nor reported on their City of Pontiac individual returns.
partly outside Pontiac, complete Worksheets 1 and 2 on page 2 to calculate If you are a shareholder in a corporation that has elected to file under
the amount to be entered on line 1. Subchapter S of the Internal Revenue Code, you are not required to report
If your Schedule C business is operated entirely outside of Pontiac, do any distributed income nor may you deduct your share of any loss or other
not enter an amount on line 1a or 1b. deductions distributed by the corporation.
Line 4—Income/loss from sale or exchange of property (for filers of Federal
WORKSHEET 1. Only for use with a business that operates partly Schedule D or Form 4797)
inside and outside the City of Pontiac. (If your business operates entirely in Enter on line 4 the gain/loss from the sale or exchange of real or
the City, go to Schedule 5, line 1a.) tangible personal property located in Pontiac, and are treated in the same
On line 1, enter the net profit (or loss) from your business or profession. manner, and the amount subject to tax determined on the same basis as
You must attach a copy of your Federal Schedule C. under the Federal Internal Revenue Code in its treatment of capital gains.
On line 2, if you claim a federal SEP retirement plan deduction, enter All capital gains received from the sale or exchange of real or tangible
the amount from your federal return here. personal property located within the City of Pontiac are fully taxable on this
On line 3, subtract line 2 from line 1. return at the non-resident tax rate.
On line 4, will be the percentage from line 12 on worksheet 2 as Attach Federal Schedule D and Form 8949. Also attach Form 4797
explained below. and Form 6252 if applicable.
On line 5, enter the result from multiplying line3 by line 4. Line 5—Premature Pension/IRA/401k distribution(s)
On line 6, deduct the applicable portion of a net operating loss carryover Enter on line 5 premature distributions (before age 59 ½) from an
from prior years. A net operating loss carry-over may be taken against the IRA/401k plan when a deduction has been taken on a current or previous
current year’s net profit (or loss). You may not take a carry-back loss on year’s Pontiac Income Tax return and/or premature distributions from a
your Pontiac Income Tax return. Carry-back losses are specifically forbidden pension. If you have completed Schedule 4, apply the percentage on
by the Income Tax Ordinance (Section 7.2) Schedule 4, Line 5 to your total distribution and enter the taxable portion of

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Follow the instructions on the front of the form for lines 4, 6 and 7.
form (Return Summary section).
until proper documentation is obtained. results of schedules 1 through 6 to lines 1, 2, 3, 5 and 8 on the front of the
result in deductions being disallowed or delay the processing of your return After completing schedules 1 through 6 as applicable, transfer the
documentation or attaching incomplete schedules and documentation will COMPLETING YOUR RETURN
supporting deductions must be attached. Failure to attach schedules and
A copy of the federal schedules and other requested documentation 1040.
You must attach a copy of page 1 and Schedule 1 of your Federal Form
Ordinance, the Ordinance prevails. (without alimony deduction)
Ordinance. If any discrepancy exists between the instructions and the Federal Adjusted Gross Income
These instructions are an interpretation of the Pontiac City Income Tax X Alimony Paid (without alimony deduction)
NOTICE Pontiac Income (Line 4, Page 1)
computed as follows:
“Income Tax” on the left side of the page. 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 Alimony deducted on your 2020 federal return is subject to adjustment
If you have access to the internet, tax forms and instructions can be prior to December 31, 2018, the following rules still apply.
are executed (or modified) after December 31, 2018. If the agreement was
Division, PO. Box 530, Eaton Rapids, MI 48827-0530. deductibility of alimony payments for divorce or separation agreements that
Questions by mail should be directed to: City of Pontiac Income Tax As stated earlier, the Tax Cuts and Jobs Act of 2017 eliminates the
We will not prepare your return for you. CHILD SUPPORT IS NOT DEDUCTIBLE) —Alimony deduction (Line 7
assistance in preparing your return, call (248) 758-3236.
If you have questions not answered in these instructions or if you need Income Tax Ordinance, and only if moving into the Pontiac area.
ASSISTANCE expenses that are applicable to income taxable under the City of Pontiac
from where you moved. However, the Pontiac deduction is limited to those
“Preparer” in the space for designee’s name. or a list of your moving expenses, including the distance in miles Form 3903
phone number. To designate the preparer who signed your return, enter you must attach a copy of Federal order. If you qualify for this deduction,
check the “Yes” box in the designated area. Enter the designee’s name and 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, suspended through December 31, 2025 except for taxpayers who are
Division any information missing from your return, receive copies of notices 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 —Moving expenses Line 3
If you want to allow a friend, family member or any other person you
THIRD PARTY DESIGNEE You must attach a detailed list of your employee business expenses.
included in reported gross earnings.
.Refunds or credits of less than one dollar ($1.00) cannot be made arrangement with your employer, if the reimbursement has been
Expenses reimbursed under an expense account or other •
resolved work).
Refunds will be issued when all matters involving the return have been Expenses of transportation (but not transportation to and from •
type of account and account number boxes provided in line 14. whose primary duty is service and delivery).
enter the overpayment on line 13 and complete the routing number, employer’s place of business (does not include driver/salesperson
B. If you want your overpayment REFUNDED VIA DIRECT DEPOSIT, Expenses as an outside salesperson who works away from his •
overpayment on line 13. Expenses of travel, meals and lodging while away from home •
A. If you want your overpayment MAILED to you, enter the 3. Ordinance are limited to the following:
Pontiac, enter the amount you choose to donate on line 12. The only deductions allowed by the City of Pontiac Income Tax
If you want a portion of your overpayment to be DONATED to City of 2. service for your employer.
credited forward on line 11. reimbursed by your employer and only when incurred in the performance of
your 2021 estimated tax, enter the amount of overpayment to be These expenses are, however, allowed only to the extent not paid or
If you want all or part of your overpayment to be HELD and applied to 1. same reductions and limitations required under the Internal Revenue Code.
on line 7, you have overpaid your tax for 2020. Enter this amount on line 10. 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 —Employee business expenses Line 2
Line 10—Overpayment Schedule 5.
A SEP retirement plan deduction must be entered on line 1b of
resolved. Attach Schedule 1 of Federal Form 1040.
will be processed when all matters involving the return have been multiple employers.
boxes provided If there are questions about your return, withdrawals deduction regardless of whether the income is from a single employer or
and complete the routing number, type of account and account number 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 deductible. If your earned income on which the federal IRA deduction is
be the date the return is processed. If authorizing a withdrawal from on Federal 1040 Schedule 1. Contributions to ROTH IRAs are not
withdraw”, and complete lines 14c, d, and e. The withdrawal date will cancelled check that clearly indicates it is for an IRA contribution, as allowed
For direct electronic withdrawal, mark line 14b. “Pay tax due-direct 1. 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. 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 Contributions to your deductible individual retirement account. ATTACH
with this return to: CITY OF PONTIAC 1040 PAYMENTS; P.O. BOX 530, —Individual Retirement Account (IRA) deduction Line 1
Make check or money order payable to CITY OF PONTIAC and mail Income Tax Ordinance are listed below in Schedule 6 instructions.
this return. 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 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 All of the following deductions are limited SCHEDULE 6—DEDUCTIONS—
payments and credits, line 7 exceeds line 8, you have an additional income
If after computing your Pontiac Income tax and deducting your the return.
Line 9—Tax due the distribution on line 5 of Schedule 5. Provide a copy of form 1099-R with

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