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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 (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.

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    are to be entered on Line 2, and need to be included on the form.                                                             payment of taxes. 
Numbers, relationship and the number of months they lived in your home       extension of time to file only applies to the filing of the tax return, not the 
dependent on the Pontiac income tax form. Names and Social Security          side of the page for Tax Forms. It is the last form on the webpage. The 
    can claim a dependent on the Federal Tax Form, you may claim the         www.pontiac.mi.us/departments/income_tax/index.php then go to the left 
Dependents may also be claimed for a dependency exemption. If you              Applications to request an for extensions are available online at 2021.
                                                         filer’s return.     return must still be filed, and any tax owed must be paid by April 30, 
personal exemption except if they are claimed as a dependent on another      When a city extension is granted, a tentative tax exceed six months.  
    All individuals filing a Pontiac income tax return are allowed one       The due date to file this return may be extended for a period not to       
                                            have any Pontiac income.                                         EXTENSION OF TIME TO FILE 
social security number and they must sign the return even if they do not 
If you are taking an exemption for your spouse, you must enter their                                                                    Schedule 1. 
            and blind, two (2) additional exemptions are allowed.            were a resident and your former address in the spaces provided above 
Michigan Compiled Laws. If the taxpayer is both 65 years of age or older     resident, regardless of the source of the income.  Show the period you 
years of age or older or who is blind as defined in Section 206.504 of the   Pontiac.  Report on this form (P-1040R) only your taxable income while a 
exemption. An additional exemption is allowed for a taxpayer who is 65        work in Pontiac during the part of the year that you lived outside of NOT
A deduction of $600.00 is allowed for each personal and dependency            use Schedule L if you were a part-year resident of Pontiac and did NOT Do
                                                                Lines 1-3    Part-year resident who did not work in Pontiac as a nonresident - 
                                      SCHEDULE 1—EXEMPTIONS                                        fill in lines 1 through 6 on the front of the form. 
                                                                             amount has been transferred from Schedule L by checking the box.  Do not 
                                                                             Indicate to the left of the dollar amount entered on line 7 that such 
                                            spouse in the space provided.                                                         and as a nonresident. 
separate return, enter their Social Security Number for your non-filing      unless you had income subject to the Pontiac tax BOTH as a resident 
return, answer the question by checking the appropriate box, and if filing a Do not use Schedule L Schedule L is the 5  form down on the page..  
the primary taxpayer. If married, and your spouse is not filing on the joint and then go to Tax Forms on the left side. Whenth    you click the link, 
birthdate and full Social Security Number(s). Enter the phone numbers for    residents and nonresidents. To find the form online, go to the link above, 
Enter your name (and spouse’s name if filing a joint return), address,       compute the tax on those items of income that are taxed differently to 
                         HEADING – PERSONAL INFORMATION                      www.pontiac.mi.us/departments/income_tax/index.php and is necessary to 
                                                                                                   of Pontiac Income Tax Division, or online at 
            LINE BY LINE INSTRUCTIONS                                        must fill out and attach a Schedule L.  Schedule L is available from the City 
                                                                             income subject to the Pontiac tax both as a resident and as a nonresident 
                         P.O. Box 530, Eaton Rapids, MI 48827-0530.          In addition to filing a resident form, individuals who had nonresident - 
payments are to be mailed to: City of Pontiac Estimated Tax Payments,        Part-year resident who worked in Pontiac as both a resident and a 
look for “Departments”, then “Finance”, and then “Income Tax”. Estimated     regardless of the source of the income.  (See Taxable Income paragraph) 
City of Pontiac Income Tax Division or online at www.pontiac.mi.us, and      income while a resident of Pontiac must be reported on this form, 
The Declaration of Estimated Tax Form P-1040ES is available from the         and had taxable income, you must use this form (P-1040R).  All taxable 
            the year, a Declaration of Estimated Tax must be filed.          If you were a resident of Pontiac during all of 2020 Full-year resident -  
that one hundred dollars (100.00) in tax or more will be due at the end of                                   WHO MUST USE THIS FORM  
If at any time during the year, your income increases to such a level    
            current year or prior year tax liability, whichever is lower.                                    Pontiac income tax, must file. 
withholdings and/or quarterly estimated payments at least 70% of your        Each trust or estate with gross income of $600.00 or more subject to 
    To avoid penalty and interest charges, you must pay through                                                   TRUST OR ESTATE 
                                  interest for the late payment of tax.                                           filed together with the return. 
    required payments will result in the assessment of penalty and           and the claimant is not the surviving spouse, Federal Form 1310 must be 
    Failure to file a Declaration of Estimated Tax and make the              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       If an executor administrator or personal representative has not been 
with your Declaration.  The remaining payments are due at the end of         representative. The return must be signed by the party filing the return.  
 one-fourth (1/4) of the estimated 2021 tax at leastApril 30, 2021 and pay       surviving spouse, and the executor, administrator or personal 
you must file a Declaration of Estimated Tax (form P-1040ES) for 2021 by     return due for the decedent. A joint return may be filed and signed by the 
withholding will be more than $10,000 after deductions ($100.00 in tax),     personal representative or survivor must file the final return and any other 
    If you expect that your Pontiac income in 2021 not subject to            who is required to file as explained above. The executor, administrator, 
                                  DECLARATION OF ESTIMATED TAX               A final return must be filed for any person who died during the year and 
                                                                                                             DECEASED TAXPAYER 
                                                     military W-2.                                    and each spouse must sign the return.  
of the United States including reserve pay.  Attach a copy of your           total Pontiac income of both spouses must be included on a joint return, 
Military pay of members of the National Guard and the Armed Forces      •    Married persons may file either a joint return or separate returns. The 
                      the sales of obligations of the United States.                                                                             refund.
subordinate units of government of the states, and gains or losses on        was withheld or estimated tax was paid, a return must be filed to claim a 
    Interest from obligations of the United States, the states, or      •    If you do not meet the requirements for filing a return but Pontiac tax    
            arising out of and in the course of an employee’s job.                                    See Taxable Income paragraph below.  
Workers’ compensation or similar payments for death, injury or illness  •    time to file is to be filed by April 30, 2021, and taxes due paid by that time.  
                                            welfare relief payments.         personal exemption amount. The Tax Return, or Request for Extension of 
Unemployment compensation, supplemental unemployment benefits,          •    who had taxable income subject to Pontiac income tax and exceeds the 
            extent as provided by the Internal Revenue Code).                For each taxable year, every resident or part-year resident of Pontiac 
accident policy paid for by your employer are taxable to the same                                            WHO MUST FILE A RETURN 
    Proceeds of insurance (except that payments from a health and       •
                                                     ROTH IRAs.              you have any questions regarding what federal forms need to be attached. 
distributions after age 59 ½, and rollover of amounts from IRAs to           Please contact the Pontiac Income Tax Division at (248) 758-3236 if        
         Railroad Retirement Act benefits, annuities, IRA and 401k                                           December 31, 2018. 
Pensions (including disability pensions), Social Security benefits,     •    executed afterunder divorce or separation instruments 
                                  Gifts, inheritances and bequests      •      The alimony deduction has been eliminated for payments required •
                                  EXEMPT/NON-TAXABLE INCOME                                        see if you qualify for the deduction. 
                                            following exceptions:            certain Armed Forces members.  See the federal instructions to 
with the income on their city return as they report on their federal return,   The moving expense deduction has been suspended, except for •
Pontiac residents are required to report the same kinds of taxable               changes to the calculation of Pontiac income tax as follows: 
                                                    TAXABLE INCOME           The Tax Cuts and Jobs Act enacted at the federal level has resulted in 
                                                                                                                                  NEW FOR 2020 
                         to file a Pontiac request for an extension. 
Applying for a Federal extension does not satisfy the requirement                        GENERAL INFORMATION

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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 2020 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 2019 Pontiac return to 2020 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
If you are a Pontiac resident subject to city income tax in another city, on 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 2020 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.

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 until proper substantiation is obtained.                                    You must attach a copy of Schedule 1 of your Federal Form 1040. 
result in deductions being disallowed or delay the processing of your return                                 December 31, 2018. 
documentation or attaching incomplete schedules and documentation will       executed afterrequired under divorce or separation instruments 
supporting deductions must be attached. Failure to attach schedules and      and Jobs Act, the alimony deduction has been eliminated for payments 
 A copy of the federal schedules and other requested documentation           2020 federal return here on line 4. Be aware that under the 2017 Tax Cuts 
                                                                             Schedule 1 of your Federal return. Enter the alimony deducted on your 
 Ordinance, the Ordinance prevails.                                          Income under the Federal Internal Revenue Code and deducted on 
 Ordinance.  If any discrepancy exists between the instructions and the      in installments to the extent includable in the spouse’s Adjusted Gross 
These instructions are an interpretation of the Pontiac City Income Tax      Alimony, separate maintenance payments and principal sums payable      
 NOTICE                                                                      CHILD SUPPORT IS NOT DEDUCTIBLE)Line 4—Alimony deduction  (
 for Tax Forms on the left side of the page..                                expenses, including the distance in miles from where you moved. 
found at www.pontiac.mi.us/departments/income_tax/index.php and look         You must attach a copy of Federal Form 3903 or a list of your moving 
 If you have access to the internet, tax forms and instructions can be       income may be deducted on your City of Pontiac Resident return.  
                                                                             qualify under the Internal Revenue Code as a deduction from federal gross 
 Division, P.O. Box 530, Eaton Rapids, MI 48827-0530.                        those Armed Forces members that move into the City of Pontiac and that 
 Questions by mail should be directed to: City of Pontiac Income Tax         military order. Moving expenses on the Resident return are only allowed for 
 assistance in preparing your return, call (248) 758-3236.                   of the Armed Forces who are on active duty and who move pursuant to a 
If you have questions not answered in these instructions or if you need      been suspended through December 31, 2025 except for certain members 
 ASSISTANCE                                                                  Under the Tax Cuts and Jobs Act of 2017, moving expenses have 
                                                                                                             Line 3—Moving expenses 
 signed your return, enter “Preparer” in the space for designee’s name. 
 designee’s name and phone number.  To designate the preparer who            These were previously reported on federal form 2106. 
 preparation, check the “Yes” box in the designated area.  Enter the         You must attach a detailed list of your employee business expenses. 
 and/or respond to notices about math errors, offsets and return                           included in reported gross earnings. 
Division any information missing from your return, receive copies of notices arrangement with your employer, if the reimbursement has been 
 choose to discuss your tax return with the Income Tax Division, give the    Expenses reimbursed under an expense account or other              •
 If you want to allow a friend, family member or any other person you                                    work i.e. commuting expense). 
 THIRD PARTY DESIGNEE                                                        Expenses of transportation (but not transportation to and from     •
                                                                                           whose primary duty is service and delivery). 
 Refunds or credits of less than one dollar ($1.00) cannot be made.          employer’s place of business (does not include driver/salesperson 
                      been resolved                                          Expenses as an outside salesperson who works away from his         •
 Refunds will be issued when all matters involving the return have           Expenses of travel, meals and lodging while away from home         •
 type of account and account number boxes provided in line 14.                                               Ordinance are as follows: 
 enter the overpayment on line 13 and complete the routing number,           The only deductions allowed by the City of Pontiac Income Tax          
B. If you want your overpayment REFUNDED VIA DIRECT DEPOSIT,                                                 service for your employer.   
            overpayment on line 13.                                          reimbursed by your employer and only when incurred in the performance of 
 A. If you want your overpayment MAILED to you, enter the               3.   These expenses are, however, allowed only to the extent not paid or 
 the overpayment on line 12.                                                 same reductions and limitations required under the Internal Revenue Code.
If you want your overpayment DONATED to the City of Pontiac, enter      2.   The employee business expenses listed below are not subject to the 
 estimated tax, enter the overpayment on line 11.                                                        Line 2—Employee business expenses 
 If you want your overpayment to be HELD and applied to your 2021       1. 
            Enter this amount on line 10.                                    of Schedule 4, and NOT on line 1 of Schedule 5 of this Pontiac return.  
 line 7, you have overpaid your tax for 2019 and are entitled to a refund.   A Keogh or SEP retirement plan deduction must be entered on line 1b.   
If your total payments and credits on line 8 exceed the Pontiac Tax on                     Attach Schedule 1 of Federal Form 1040. 
                      Line 10—Overpayment                                                  Contributions to ROTH IRA’s are not deductible. 
                                                                             Schedule 1 of the federal 1040 which shows the deduction.  
            have been resolved.                                              check that clearly indicates it is for an IRA contribution, as allowed on 
 withdrawals will be processed when all matters involving the return         traditional IRA contribution, a copy of federal Form 5498, copy of cancelled 
 number boxes provided If there are questions about your return,             Proof of deductibility includes, but is not limited to: a copy of receipt for 
 and complete the routing number, type of account and account                under the Internal Revenue Code. ATTACH PROOF OF DEDUCTIBILITY. 
your account of the amount due on line 9, go to line 14b, c, d, and e        The rules governing IRA deductions on this return are the same as      
 be the date the return is processed. If authorizing a withdrawal from                                       Line 1—IRA deduction 
withdraw”, and complete lines 14c, d, and e.  The withdrawal date will 
 For direct electronic withdrawal, mark line 14b. “Pay tax due-direct   1.   income.  The only deductions allowed by the Income Tax Ordinance are:
                      City Hall.                                             Part-year residents must allocate deductions the same way they allocate 
 Cash payments can only be made in person at the Treasurer’s Office in                                   SCHEDULE 5—DEDUCTIONS 
 EATON RAPIDS, MI  48827-0530.  Do not send cash through the mail. 
with this return to:  CITY OF PONTIAC 1040 PAYMENTS, P.O. BOX 530,                         Attach a copy of Schedule 1 from the federal 1040.
 Make check or money order payable to CITY OF PONTIAC and mail                                               as taxable income.
 of Pontiac, and it must be entered on Line 9.                               require payments of alimony will still require these payments be reported 
have an additional income tax liability, and a balance due owing to the City 2018. Alimony decrees that were in effect prior to January 1, 2019 that 
payments and credits, the balance due is one dollar ($1.00) or more, you      December 31, executed afterunder divorce or separation instruments 
 If after computing your Pontiac Income tax and deducting your               inclusion of alimony income has been eliminated for payments required 
                      Line 9—Tax due                                         With the passage of the Tax Cut and Jobs Act in December, 2017,the 
                                                                             received, miscellaneous income or income from any other source. 
 Follow the instructions on Page 1 of the form for lines 4, 6 and 7.         from casinos, racetracks or non-charitable lotteries or bingo halls, alimony 
 form, in the RETURN SUMMARY AREA.                                           Examples of the types of income reported on line 10 are gambling winnings 
 results of schedules 1 through 5 to lines 1, 2, 3, 5 and 8 on page 1 of the not specifically exempted by the City of Pontiac Income Tax Ordinance.  
 After completing schedules 1 through 5 as applicable, transfer the          Enter on line 10 all other income reported on your federal return and  
 COMPLETING YOUR RETURN – RETURN SUMMARY                                                                     Line 10—Other income.

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