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INSTRUCTIONS FOR SCHEDULE L
GENERAL INFORMATION Capital gain or loss (line 5) - Enter any capital gains or
The City of Port Huron's income tax ordinance imposes losses on this line. Your residency status on the date of
differing tax rates for residents (1%) and nonresidents (½ the sale or exchange will decide how we tax it. Compute
of 1%). Certain types of income are taxable if earned by gains and losses using the instructions provided with
a resident and are not taxable if earned by a nonresident. Form PH-1040.
Schedule L provides a means to figure out your tax
liability if you had income subject to tax as a resident and Supplemental income or loss (line 6) - All rental
as a nonresident. income earned while a resident is subject to tax, no
matter the location of the property. Rental income
Read the instructions for Form PH-1040 before you received by a nonresident is subject to tax if the rental
complete Schedule L. The instructions will explain what property is located in the City of Port Huron.
income is taxable while a resident and as a nonresident.
Losses transferred between columns (line 10) - When
Be sure to attach all federal schedules requested in the
a loss exists on line 9 in either column, use this line to
instructions.
subtract the loss from the other column.
COMPUTING TAXABLE INCOME Exemption credit (lines 12 and 14) - The amount
If you received income from the same source, both as a allowed for exemptions is first applied against resident
resident and as a nonresident, you must prorate the income. If your exemption credit exceeds your resident
income. Prorate the income based on how much time income, apply the excess credit to your nonresident
that you were a resident and a nonresident in relation to income.
when you earned the income.
COMPUTING THE TAX
Example: You earned $10,000 working in the city for The tax rate for residents is 1% (.01). The tax rate for
Employer A. You worked for Employer A from February nonresidents is 1/2 of 1% (.005). Compute the tax on
1, to November 30 (10 months). You were a city resident each portion of your income. Transfer the amount shown
from January 1, to May 31 (5 months). Your wages would on line 18 of Schedule L to line 12, of Form PH-1040.
be taxable as follows:
COMPLETION OF FORM PH-1040
$4,000 as a city resident Schedule L is not a return itself. Attach Schedule L to
your City of Port Huron Individual Income Tax Return,
4 months (Feb - May) / 10 months (Feb - Nov) = .400 Form PH-1040.
.400 X $10,000 = $4,000
Enter your tax on line 12 of Form PH-1040. Follow the
$6,000 as a nonresident instructions for Form PH-1040 to complete the remaining
sections of the return. Leave lines 1 through 11 of Form
6 months (Jun - Nov) / 10 months (Feb - Nov) = .600 PH-1040 blank. Be sure to sign the return and attach
.600 X $10,000 = $6,000 your W-2's in the designated area.
In the example above, if you worked outside of the city ASSISTANCE
only the amount you earned as a resident ($4,000) would If you have any questions about this schedule or the City
be taxable. of Port Huron income tax call (810) 984-9741, email
incometax@porthuron.org, or send requests by mail to:
Wages, salaries, tips, etc. (line 1) - All amounts earned Income Tax Division
by City residents are taxable (including salary, wages, 100 McMorran Boulevard
bonuses, tips, commissions and other compensation). Port Huron, Michigan 48060
The work location of a resident does not matter. We tax If you wish to visit our office, we are in Room 112 of the
nonresidents on amounts earned for work done or Municipal Office Center at the preceding address. Our
services rendered in the City. Make a separate normal office hours are Monday through Friday 8:00 a.m.
computation for each W-2 you received. If only part of to 4:30 p.m..
your nonresident wages were earned in the City, please
furnish the information requested in Schedule A of Form
PH-1040.
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