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

City of Pontiac Income Tax                                         2022

Form P-1040 (R)

Individual Return and Instructions for 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.

                      GENERAL INFORMATION                                         Applying for a Federal extension does not satisfy the requirement 
                                                                                to file a Pontiac request for an extension. 
TEMPORARY CHANGES STILL FOR 2022                                                 
   The Tax Cuts and Jobs Act enacted at the federal level has resulted in       TAXABLE INCOME 
changes to the calculation of Pontiac income tax as follows:                      Pontiac residents are required to report the same kinds of taxable 
        The moving expense deduction has been suspended, except for            income on their city return as they report on their federal return, with the 
         certain Armed Forces members.  See the federal instructions to         following exceptions: 
         see if you qualify for the deduction.                                    EXEMPT/NON-TAXABLE INCOME 
                                                                                
        The alimony deduction has been eliminated for payments                    Gifts, inheritances and bequests 
         required 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 
   Please contact the Pontiac Income Tax Division at (248) 758-3236 if you         distributions after age 59 ½, and rollover of amounts from IRAs to 
have any questions regarding what federal forms need to be attached.               ROTH IRAs. 
                                                                                  Proceeds of insurance (except that payments from a health and 
WHO MUST FILE A RETURN                                                             accident policy paid for by your employer are taxable to the same 
   For each taxable year, every resident or part-year resident of Pontiac          extent as provided by the Internal Revenue Code). 
who had taxable income subject to Pontiac income tax and exceeds the              Unemployment compensation, supplemental unemployment benefits, 
personal exemption amount. The Tax Return, or Request for Extension of             welfare relief payments. 
time to file is to be filed by April 30, 2023, or next business day, and taxes    Workers’ compensation or similar payments for death, injury or illness 
due paid by that time.  See Taxable Income paragraph below.                        arising out of and in the course of an employee’s job. 
   If you do not meet the requirements for filing a return but Pontiac tax        Interest from obligations of the United States, the states, or 
was withheld or estimated tax was paid, a return must be filed to claim a          subordinate units of government of the states, and gains or losses on 
refund.                                                                            the sales of obligations of the United States. 
   Married persons may file either a joint return or separate returns. The        Military pay of members of the National Guard and the Armed Forces 
total Pontiac income of both spouses must be included on a joint return,           of the United States including reserve pay.  Attach a copy of your 
and each spouse must sign the return.                                              military W-2. 
   DECEASED TAXPAYER                                                             
   A final return must be filed for any person who died during the year and     DECLARATION OF ESTIMATED TAX 
who is required to file as explained above. The executor, administrator,          If you expect that your Pontiac income in 2023 not subject to 
personal representative or survivor must file the final return and any other    withholding will be more than $10,000 after deductions ($100.00 in tax), 
return due for the decedent. A joint return may be filed and signed by the      you must file a Declaration of Estimated Tax (form P-1040ES) for 2023 by 
surviving spouse, and the executor, administrator or personal                   April 30, 2023, or next business day, and pay at least one-fourth (1/4) of 
representative. The return must be signed by the party filing the return.       the estimated 2023 tax with your Declaration.  The remaining payments are 
   If an executor administrator or personal representative has not been         due at the end of June, September and January. This way you are paying 
appointed, the surviving spouse may file a joint return. The spouse must        your tax as it is 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 
and the claimant is not the surviving spouse, Federal Form 1310 must be         required payments will result in the assessment of penalty and 
filed together with the return.                                                 interest for the late payment of tax. 
   TRUST OR ESTATE                                                                To avoid penalty and interest charges, you must pay through 
   Each trust or estate with gross income of $600.00 or more subject to         withholdings and/or quarterly estimated payments at least 70% of your 
Pontiac income tax, must file.                                                  current year or prior year tax liability, whichever is lower. 
                                                                                  If at any time during the year, your income increases to such a level 
WHO MUST USE THIS FORM                                                          that one hundred dollars (100.00) in tax or more will be due at the end of 
   Full-year resident - If you were a resident of Pontiac during all of 202 2   the year, a Declaration of Estimated Tax must be filed. 
and had taxable income, you must use this form (P-1040R).  All taxable            The Declaration of Estimated Tax Form P-1040ES is available from the 
income while a resident of Pontiac must be reported on this form,               City of Pontiac Income Tax Division or online at www.pontiac.mi.us, and 
regardless of the source of the income.  (See Taxable Income paragraph)         look for “Departments”, then “Finance”, and then “Income Tax”. Estimated 
   Part-year resident who worked in Pontiac as both a resident and a            payments are to be mailed to: City of Pontiac Estimated Tax Payments, 
nonresident - In addition to filing a resident form, individuals who had        P.O. Box 530, Eaton Rapids, MI 48827-0530. 
income subject to the Pontiac tax both as a resident and as a nonresident                                       
must fill out and attach a Schedule L.  Schedule L is available from the City                      LINE BY LINE INSTRUCTIONS 
of Pontiac Income Tax Division, or online at                                                                    
www.pontiac.mi.us/departments/income_tax/index.php and is necessary to          HEADING – PERSONAL INFORMATION 
compute the tax on those items of income that are taxed differently to            Enter your name (and spouse’s name if filing a joint return), address, 
residents and nonresidents. To find the form online, go to the link above,      birthdate and full Social Security Number(s). Enter the phone numbers for 
and then go to Tax Forms on the left side. When you click the link,             the primary taxpayer. If married, and your spouse is not filing on the joint 
Schedule L is the 5 thform down on the page..       Do not use Schedule L       return, answer the question by checking the appropriate box, and if filing a 
unless you had income subject to the Pontiac tax BOTH as a resident             separate return, enter their Social Security Number for your non-filing 
and as a nonresident.                                                           spouse in the space provided. 
   Indicate to the left of the dollar amount entered on line 7 that such 
amount has been transferred from Schedule L by checking the box.  Do not                                        
fill in lines 1 through 6 on the front of the form.                             SCHEDULE 1—EXEMPTIONS 
   Part-year resident who did not work in Pontiac as a nonresident -            Lines 1-3 
Do NOT use Schedule L if you were a part-year resident of Pontiac and did         A deduction of $600.00 is allowed for each personal and dependency 
NOT work in Pontiac during the part of the year that you lived outside of       exemption. An additional exemption is allowed for a taxpayer who is 65 
Pontiac.  Report on this form (P-1040R) only your taxable income while a        years of age or older or who is blind as defined in Section 206.504 of the 
resident, regardless of the source of the income.  Show the period you          Michigan Compiled Laws. If the taxpayer is both 65 years of age or older 
were a resident and your former address in the spaces provided above            and blind, two (2) additional exemptions are allowed.  
Schedule 1.                                                                       If you are taking an exemption for your spouse, you must enter their 
                                                                                social security number and they must sign the return even if they do not 
EXTENSION OF TIME TO FILE                                                       have any Pontiac income. 
   The due date to file this return may be extended for a period not to           All individuals filing a Pontiac income tax return are allowed one 
exceed six months.  When a city extension is granted, a tentative tax           personal exemption except if they are claimed as a dependent on another 
return must still be filed, and any tax owed must be paid by April 30,          filer’s return. 
2023.  Applications to request an for extensions are available online at          Dependents may also be claimed for a dependency exemption. If you 
www.pontiac.mi.us/departments/income_tax/index.php then go to the left          can claim a dependent on the Federal Tax Form, you may claim the 
side of the page for Tax Forms. It is the last form on the webpage. The         dependent on the Pontiac income tax form. Names and Social Security 
extension of time to file only applies to the filing of the tax return, not the Numbers, relationship and the number of months they lived in your home 
payment of taxes.                                                               are to be entered on Line 2, and need to be included on the form. 
                                                                                   

SCHEDULE 2—WAGE DETAIL                                                                          A net operating loss carry-over may be taken against the current year’s 
Columns A and B                                                               net profit or loss. You may not take a carry-back loss on your Pontiac 
                                                                              Income Tax return. Carry-back losses are specifically forbidden by the 
All wages, salaries, sick pay, vacation pay, holiday pay, strike pay, tips,   income tax ordinance, (Section 7.2).  Attach a schedule showing the 
bonuses, and other compensation, etc. earned by a resident of Pontiac         calculation of any net operating loss carryover deducted from line 3c.   
while a resident of Pontiac are taxable regardless of where earned and         
must be included on Schedule 2. If you were a full year resident, this is the Line 4—Income/loss from rents/royalties (for filers of Federal Schedule E, 
amount in box 1 of the W2 and entered in column B.                            page one) 
                                                                                                Enter all rental and royalty income included on your Federal return and 
 Enter Pontiac income tax withheld by your employer in Column A as            received while a resident of Pontiac.  Attach a copy of Federal Schedule 
shown in box 19 of your 2022 W-2 statements.  The locality name on your       E, page one and any other supporting schedules. 
W-2(s) must be Pontiac for you to receive credit for Pontiac income tax        
withholding.  The City of Pontiac copy of your W-2(s) must be                 Line 5—Income/loss from partnerships (for filers of Federal Schedule E, 
submitted with your return.                                                   page two) 
                                                                                                   If you have partnership income (or loss), enter your share of 
 In Column B, enter total wages from box one of your W-2(s).                  ordinary income and capital gains from the partnership on line 5 of 
                                                                              Schedule 4 as reported on Federal Schedule E, page two.  Your share of 
SCHEDULE 3—PAYMENTS                                                           interest and qualifying dividends, gains, etc. are treated as belonging to 
                                                                              you as an individual and should be reported on the appropriate Federal 
Line 1—Tax withheld by your employer                                          Schedule 1, and Pontiac Schedule 4, lines 1 or 2.. 
 Enter the amount of Pontiac tax withheld from Schedule 2, Column A,          Attach a copy of Federal Schedule 1, and Schedule E, page two. 
line 1a from above.                                                                             If you are claiming a loss from a partnership located outside of Pontiac, 
                                                                              a copy of your Federal Schedule K-1 must be attached. 
Line 2—Estimated payments, credit from a prior year, extension payments        
 If you made quarterly estimated payment(s) on form P-1040-ES,                Line 6—Income/loss from sale or exchange of property (for filers of Federal 
applied an overpayment from your 2021 Pontiac return to 2022 or made a        Schedule D, Form 8949, Form 4797 and/or Form 6252) 
payment with an extension, enter the total of all payments on line 2.  If a                     Enter on line 6 the gain/loss from the sale or exchange of real or 
payment was made with a request for extension/Tentative Return, indicate      tangible personal property regardless of where located.  The Pontiac 
the date the payment was made.                                                Income Tax Ordinance follows the Internal Revenue Code in its treatment 
                                                                              of capital gains, with two exceptions: 
Line 3—Credit for tax paid to another city.                                     Gains on the sales of obligations of the United States are not taxable on 
 If you are a Pontiac resident subject to city income tax in another city,    this return. 
you may claim a credit against Pontiac income tax for a part or all of the      Gain or loss on property purchased prior to January 1, 1968 must be 
non-resident amount paid to the other city. This credit may not exceed the    determined by one of the following methods: 
tax that a non-resident of Pontiac would pay on the same income earned in                       a) The base may be the adjusted fair market value of the property on 
Pontiac (1/2% or 0.005) of the other city’s taxable income.  Complete                              January 1, 1968 (January 2, 1968 closing price for traded 
Worksheet 1 on page 2 of the form to determine the amount of credit to                             securities), or 
enter on line 3. You must attach a copy of the 2022 city income tax                             b) Divide the number of months the property was held since January 
return(s) you filed with the other city(ies) to receive this credit.                               1, 1968 by the total number of months the property was held, and 
                                                                                                   apply this fraction to the total gain or loss as reported on your 
Line 4—Credit for taxes paid by a partnership.                                                     federal income tax return. 
 Enter any Pontiac income tax paid on your behalf by a partnership of                           The result of the selected method (if applicable) is entered on line 6. 
which you are a partner on line 4.  Please indicate to the right of the       Attach Federal Schedule D and Form 8949.  Also attach Form 4797 
amount that the payment was made by a partnership. Clearly provide the        and Form 6252 if applicable. 
Partnership’s name and Federal Tax Identification Number.                      
                                                                              Line 7—Distributions from Subchapter S corporations. 
Line 5. Add the total of Lines 1 through 4 and enter the total of all                           Enter on line 7 cash or property distributions from S corporations from 
payments on this line, and also on Line 8 of the Return Summary.              line 16, code D of Federal Schedule K-1.  The Pontiac City Income Tax 
                                                                              Ordinance does not recognize Subchapter S status.  Distributions from an 
SCHEDULE 4—OTHER INCOME/LOSS (ON PAGE 2)                                      S corporation are taxable as if paid by a regular corporation as dividends.   
The federal rules concerning passive losses are applicable to losses                            If you are a shareholder in a corporation that has elected to file under 
deducted on this return.                                                      Subchapter S of the Internal Revenue Code, you are not required to report 
                                                                              any distributed income from Federal Schedule K-1 lines 1 through 11, nor 
 Line 1—Interest income                                                       may you deduct your share of any loss or other deductions distributed by 
      All interest taxed on your federal return minus interest from           the corporation. 
obligations of the United States and subordinate units of government          Attach copies of Federal Schedule K-1 for all S corporations listed on 
received while a resident of Pontiac is taxable on this return regardless of  page two of your Federal Schedule E regardless of whether or not the 
where earned. Enter interest from your federal return on line 1a.  Enter      S corporation made distributions.                
interest from obligations of the United States and subordinate units of        
government on line 1b.  Subtract line 1b. from line 1a. and enter the result  Line 8—Income from estates and/or trusts. 
on line 1c.                                                                                     Enter on line 8 all income from estates and/or trusts reported on your 
                                                                              Federal Schedule E, page two.  Income from an estate or trust is taxable to 
Line 2—Dividend income                                                        a Pontiac resident regardless of the location of the estate or trust, or the 
      Enter all dividends from your federal return on line 2a. Enter          location of property it may own. 
dividends from obligations of the United States and subordinate units of      Attach a copy of Federal Schedule E, page two. 
government on line 2b.  Subtract line 2b. from line 2a. and enter the result                    
on line 2c.                                                                   Line 9—Distributions from profit sharing plans, premature IRA distributions. 
                                                                                                If you receive distributions from employee stock purchase and profit 
Line 3—Income/loss from business (for filers of Federal Schedule C)           sharing plans (which are classified as wages not subject to withholding); 
 Pontiac residents are taxed on the net profits from their operation of a     and distributions that are received from qualified trusts upon termination of 
business or profession regardless of where it is located.                     employment and receive treatment as capital gains under the Federal 
 Enter your Schedule C income/loss on line 3a.  Enter your Keogh or           Internal Revenue Code, all withdrawals  and distributions  from deferred 
SEP deduction, if applicable, on line 3b.  Subtract line 3b. from 3a. and     income plans must be reported on line 9. Also enter on line 9 all early 
enter the result on line 3c. You must attach a copy of Federal Schedule       pension and profit sharing withdrawals and/or distributions subject to the 
C.  If you have deducted a Keogh or SEP contribution on line 3b. you          10% federal penalty.  Additionally, report on line 9 premature IRA and 
must attach a copy of Schedule 1 of your Federal Form 1040.                   401k/457/403b distributions subject to the 10% federal penalty. These 
                                                                              distributions are not pensions, and are treated as income subject to income 
                                                                              tax by the City of Pontiac. 
                                                                               

Line 10—Other income.                                                             COMPLETING YOUR RETURN – RETURN SUMMARY 
 Enter on line 10 all other income reported on your federal return and           After completing schedules 1 through 5 as applicable, transfer the 
not specifically exempted by the City of Pontiac Income Tax Ordinance.        results of schedules 1 through 5 to lines 1, 2, 3, 5 and 8 on page 1 of the 
Examples of the types of income reported on line 10 are gambling winnings     form, in the RETURN SUMMARY AREA. 
from casinos, racetracks or non-charitable lotteries or bingo halls, alimony     Follow the instructions on Page 1 of the form for lines 4, 6 and 7. 
received, miscellaneous income or income from any other source.                
With the passage of the Tax Cut and Jobs Act in December, 2017,the            Line 9—Tax due 
inclusion of alimony income has been eliminated for payments required            If after computing your Pontiac Income tax and deducting your 
under divorce or separation instruments executed after December 31,           payments and credits, the balance due is one dollar ($1.00) or more, you 
2018. Alimony decrees that were in effect prior to January 1, 2019 that       have an additional income tax liability, and a balance due owing to the City 
require payments of alimony will still require these payments be reported     of Pontiac, and it must be entered on Line 9.   
as taxable income.                                                               Make check or money order payable to CITY OF PONTIAC and mail 
Attach a copy of Schedule 1 from the federal 1040.                            with this return to:  CITY OF PONTIAC 1040 PAYMENTS, P.O. BOX 530, 
                                                                              EATON RAPIDS, MI  48827-0530.  Do not send cash through the mail. 
SCHEDULE 5—DEDUCTIONS                                                         Cash payments can only be made in person at the Treasurer’s Office in 
Part-year residents must allocate deductions the same way they allocate       City Hall.  
income.  The only deductions allowed by the Income Tax Ordinance are:         1.  For direct electronic withdrawal, mark line 14b. “Pay tax due-direct 
                                                                                  withdraw”, and complete lines 14c, d, and e.  The withdrawal date will 
Line 1—IRA deduction                                                              be the date the return is processed. If authorizing a withdrawal from 
 The rules governing IRA deductions on this return are the same as                your account of the amount due on line 9, go to line 14b, c, d, and e 
under the Internal Revenue Code. ATTACH PROOF OF DEDUCTIBILITY.                   and complete the routing number, type of account and account 
Proof of deductibility includes, but is not limited to: a copy of receipt for     number boxes provided If there are questions about your return, 
traditional IRA contribution, a copy of federal Form 5498, copy of cancelled      withdrawals will be processed when all matters involving the return 
check that clearly indicates it is for an IRA contribution, as allowed on         have been resolved. 
Schedule 1 of the federal 1040 which shows the deduction.                      
 Contributions to ROTH IRA’s are not deductible.                              Line 10—Overpayment 
Attach Schedule 1 of Federal Form 1040.                                          If your total payments and credits on line 8 exceed the Pontiac Tax on 
 A Keogh or SEP retirement plan deduction must be entered on line 1b.         line 7, you have overpaid your tax for 2022 and are entitled to a refund.  
of Schedule 4, and NOT on line 1 of Schedule 5 of this Pontiac return.        Enter this amount on line 10. 
                                                                              1.  If you want your overpayment to be HELD and applied to your 2023 
Line 2—Employee business expenses                                                 estimated tax, enter the overpayment on line 11. 
 The employee business expenses listed below are not subject to the           2.  If you want your overpayment DONATED to the City of Pontiac, enter 
same reductions and limitations required under the Internal Revenue Code.         the overpayment on line 12. 
These expenses are, however, allowed only to the extent not paid or           3.  A. If you want your overpayment MAILED to you, enter the 
reimbursed by your employer and only when incurred in the performance of          overpayment on line 13. 
service for your employer.                                                        B. If you want your overpayment REFUNDED VIA DIRECT DEPOSIT, 
 The only deductions allowed by the City of Pontiac Income Tax                    enter the overpayment on line 13 and complete the routing number, 
Ordinance are as follows:                                                         type of account and account number boxes provided in line 14. 
  Expenses of travel, meals and lodging while away from home                     Refunds will be issued when all matters involving the return have 
  Expenses as an outside salesperson who works away from his                     been resolved 
   employer’s place of business (does not include driver/salesperson          Refunds or credits of less than one dollar ($1.00) cannot be made. 
   whose primary duty is service and delivery).                                                                   
  Expenses of transportation (but not transportation to and from                               THIRD PARTY DESIGNEE 
   work i.e. commuting expense).                                                 If you want to allow a friend, family member or any other person you 
  Expenses reimbursed under an expense account or other                      choose to discuss your tax return with the Income Tax Division, give the 
   arrangement with your employer, if the reimbursement has been              Division any information missing from your return, receive copies of notices 
   included in reported gross earnings.                                       and/or respond to notices about math errors, offsets and return 
You must attach a detailed list of your employee business expenses.           preparation, check the “Yes” box in the designated area.  Enter the 
These were previously reported on federal form 2106.                          designee’s name and phone number.  To designate the preparer who 
                                                                              signed your return, enter “Preparer” in the space for designee’s name.       
Line 3—Moving expenses                                                                                            
 Under the Tax Cuts and Jobs Act of 2017, moving expenses have                                              ASSISTANCE 
been suspended through December 31, 2025 except for certain members              If you have questions not answered in these instructions or if you need 
of the Armed Forces who are on active duty and who move pursuant to a         assistance in preparing your return, call (248) 758-3236. 
military order. Moving expenses on the Resident return are only allowed for      Questions by mail should be directed to: City of Pontiac Income Tax 
those Armed Forces members that move into the City of Pontiac and that        Division, P.O. Box 530, Eaton Rapids, MI 48827-0530. 
qualify under the Internal Revenue Code as a deduction from federal gross         
income may be deducted on your City of Pontiac Resident return.                  If you have access to the internet, tax forms and instructions can be 
You must attach a copy of Federal Form 3903 or a list of your moving          found at www.pontiac.mi.us/departments/income_tax/index.php and look 
expenses, including the distance in miles from where you moved.               for Tax Forms on the left side of the page.. 
                                                                               
Line 4—Alimony deduction  (CHILD SUPPORT IS NOT DEDUCTIBLE)                                                 NOTICE 
 Alimony, separate maintenance payments and principal sums payable               These instructions are an interpretation of the Pontiac City Income Tax 
in installments to the extent includable in the spouse’s Adjusted Gross       Ordinance.  If any discrepancy exists between the instructions and the 
Income under the Federal Internal Revenue Code and deducted on                Ordinance, the Ordinance prevails. 
Schedule 1 of your Federal return. Enter the alimony deducted on your          
2021 federal return here on line 4. Be aware that under the 2017 Tax Cuts        A copy of the federal schedules and other requested documentation 
and Jobs Act, the alimony deduction has been eliminated for payments          supporting deductions must be attached. Failure to attach schedules and 
required under divorce or separation instruments executed after               documentation or attaching incomplete schedules and documentation will 
December 31, 2018.                                                            result in deductions being disallowed or delay the processing of your return 
You must attach a copy of Schedule 1 of your Federal Form 1040.               until proper substantiation 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.