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RESIDENT NON-RESIDENT
Line 1-Wages, Salaries, Tips, Bonuses, Sick Pay, Buyouts etc. Line 1-Wages, Salaries, Tips, etc.
Pages 1&2 and Schedule 1 of the Federal Return must be attached A non-resident is taxed only on earnings received for work done or
to all returns in order to verify income. A resident is taxed on ALL services performed in the City of Saginaw. Compensation paid to a
earnings, including salary, bonus, separation and incentive payments, non-resident for work performed outside the City of Saginaw should
tips, commissions and other compensation for services rendered, be excluded, based on the percentage of time worked in and out of
REGARDLESS WHERE EARNED. EXAMPLE: Taxpayer lives Saginaw. During the COVID shutdown, if you worked from home
in the City of Saginaw but works in Alpena and receives his paycheck outside the City for hours’ equivalent to your regular work shift (Use
from the home office in New York City, 100% of his compensation is Schedule A, Page 2). Severance, vacation, holiday, sick, family leave
taxable. Attach all Form W-2s. and bonus payments are taxable on the same ratio as normal earnings.
Line 2-Interest and Dividends If you were paid by your employer, but did not work from home,
Interest and Dividends are taxable the same as the Federal return these wages are taxed as normal wages. If non-resident couple files
except margin interest and interest on U.S. Bonds, Treasury Bills and jointly, one of who works in the city and the other outside the city,
Notes is excluded on Schedule B. The amount from Federal 1040, the compensation of the spouse working outside shall be excluded.
page 1, Line 2b, U.S. Agency Bonds are taxable Attach Forms W-2, showing Saginaw tax withheld.
Line 4-Business Income (Attach Federal Schedule C) Line 2-Interest and Dividends. NOT TAXABLE to non-residents.
All self-employment income is taxable. Job Credits and additional Line 4-Business Income (Attach Federal Schedule C)
depreciation due to Investment Credit adjustment are deducted from If the business activity is not entirely within the City of Saginaw,
Federal taxable income. attach a note to explain computation or you may obtain Schedule
Line 5 & 6-Sale or Exchange of Property (Attach Schedule D) S-1040BC by downloading the form from www.saginaw-mi.com.
Long and short term capital gains and losses are to be reported in the In determining the average percentage, a factor shall be excluded
same manner as the Federal return except that portion occurring before from the computation only when such factor does not exist
July 1, 1965, shall be excluded. The exclusion shall be computed by anywhere and, in such cases, the sum of the percentages shall be
the difference between the purchase price and fair market value at July divided by the number of factors actually used.
1, 1965 (June 30 closing price for traded securities) or by prorating the Line 5 & 6-Sale or Exchange of Property (Attach Schedule D)
gain or loss on the basis of total months held to months in the non- Report only those gains and losses arising from property located in
taxable period. Include gains or losses from Federal Form 4797. the City of Saginaw. See instructions under “Resident” for method
Line 7-Individual Retirement Account. (Attach 1099R) Individual of prorating gains/losses and record transactions in Schedule D.
Retirement Account distributions received after reaching 59 ½ and An estate or trust will pay the tax for a non-resident beneficiary and
conversions to Roth IRA are not taxable unless early distributions. such income is not taxable on the Saginaw return.
Line 8-Pension Distributions (Attach 1099R) Line 7-Individual Retirement Account.
Enter amounts from Federal 1040, Line 4b. Pensions are not taxable Individual Retirement Account distributions are NOT taxable.
unless early distributions. However, the portion a premature IRA distribution, in relation to
Qualified Retirement Plan Distributions (Attach 1099R) city income (Form 1099-R, Box 7, Code 1) is taxable to a nonresident.
Social security and annuities are not taxable. Line 8-Pension Distributions
Line 9-Supplemental Income (Attach Federal Schedule E) Qualified Pension plans are not taxable. Qualified Retirement Plan
Enter on this line, Column I, the total amount shown on the Federal Distributions are not taxable. However, premature distributions
Schedule 1, line 5. For Income not subject to tax, Complete Schedule (those received prior to qualifying for retirement) are taxable.
E on Page 2 and enter total to Page 1 of Form S-1040, Line 9, in Line 9-Supplemental Income (Attach Federal Schedule E)
column “Income not subject to tax”. Losses on passive income is the Rents on units outside the City of Saginaw and partnerships located
same as Federal Form 1040, except Sub Chapter “S” Corp are not outside the City of Saginaw are excluded. Indicate name, location
deductible. and Federal ID# on Schedule E. Losses on passive income are the
Line 10-Subchapter S Corporation Distributions. same as Federal Form 1040. However losses on passive income of
Actual distributions of Subchapter earnings (dividends) are taxable the Sub Chapter “S” Corporation are not deductible.
same as the Federal, except margin interest is deducted on Schedule B. Line 10-Subchapter S Corporation Distributions.
Line 14-Miscellaneous (Attach Schedule 1) THIS IS NOT TAXABLE TO NONRESIDENTS.
Enter amount from Federal Form 1040 Schedule 1, Line 8. Line 14-Miscellaneous (Attach Support)
Included in this line would be jury duty, stock savings plans, ESOP See instructions under “Resident”. Sick pay is taxable in proportion
payout, all gambling winnings and other miscellaneous income. to taxable wages. Any miscellaneous income for services performed
Line 16-22-DEDUCTIONS outside the City of Saginaw should be excluded.
See “Instructions for Page 1” for allowable Adjustments. Enter total Gambling winnings are not taxable.
“Adjustments to Income” from Federal Form 1040. Must attach Form Line 16-22-DEDUCTIONS
2106 for employee business expense; Form 3903 for moving expenses See instructions under “Resident”. If your earnings from Line 1
and federal Schedule 1 for all other adjustments. (IRA, SEP, above have been prorated through use of the percentage shown on
Alimony, etc.). Line 1 (d) of Schedule A, use the same percentage to prorate these
Line 26– Tax adjustments. However, if another method was used to prorate
Residents are taxed on 100% of their earnings at 1.50%. earnings use this same method to prorate your adjustments.
Tax Partial year residents are taxed on: Line 26 –
- 100% of earnings while a resident at 1.50% Non-residents are taxed on 100% of city earnings at .75%.
- 100% of city earnings while a non-resident at .75% Partial year residents are taxed on:
- Partial Residency Tax Rate Table-use only if total income -100% of earnings while a resident at 1.50%.
for all year (12 months) was in the City of Saginaw -100% of city earnings while a non-resident at .75%.
If your tax situation does not fit any of the above use S-1040TC -Partial Residency Tax Rate Table- use only if total income
included in this instruction booklet. for all year (12 months) was in the City of Saginaw
If your tax situation does not fit any of the above use S-1040TC
included in this instruction booklet.
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