Grand Rapids Department of Treasury
Income Tax Office
P.O. Box 2528
Grand Rapids, Michigan 49501-2528
2010 GRAND RAPIDS
INDIVIDUAL INCOME TAX
FORMS AND INSTRUCTIONS
Form GR-1040
For use by individual residents,
part-year residents and nonresidents
ALL PERSONS HAVING GRAND RAPIDS TAXABLE INCOME IN 2010 MUST FILE A RETURN
NEW
RATE
TAX FORM
ORDINANCE
CHANGES
FOR 2010
BLENDED
TAX RATES
FILING DATE
PAYMENT
OF TAX DUE
A new tax form has been designed for use by residents, nonresidents and part-year residents. You begin with information
from your federal tax return (US 1040) and exclude what is not taxable by the City. Part-year residents need to file using
Schedule TC. Tax forms are available online at: www.grcity.us/incometax
Resident tax rate increased from 1.3% to 1.5%.
Nonresident tax rate increased from 0.65% to 0.75%.
Exemption value decreased from $750 to $675.
All 2010 changes effective July 1, 2010
RESIDENT: 1.4%
NONRESIDENT: 0.7%
You may use the blended tax rates for 2010. However, you have the option to use Schedule TC, to report income during
the half-year in which it was received and calculate the tax using the tax rate for that half-year.
The due date is May 2, 2011. Penalty and interest ($2.00 minimum) will be assessed on all late payments.
Tax due, if one dollar ($1.00) or more, must be paid with your return. NOTE: If you are paying $100.00 or more with
your 2010 return, you may need to make estimated income tax payments for 2011. See page 2 of instructions.
Make check or money order payable to: GRAND RAPIDS CITY TREASURER
Mail tax return and payment to: Grand Rapids Income Tax, P.O. Box 2528, Grand Rapids, MI 49501-2528.
NEW CHECK
PROCESSING
NOTIFICATION
When you make a payment by check, your check may be converted into an electronic fund transfer. By paying via check,
you are authorizing us to copy your check and use the account information from the check to make an electronic funds
transfer from your account for the amount of the check. You will not receive your check back. The check will be copied and
we will destroy your original check, but keep the electronic copy for recordkeeping purposes.
CONTACT
For assistance, visit Grand Rapids Income Tax, City Hall, 300 Monroe NW, Grand Rapids, Michigan, call (616) 456-3415,
or find us online: www.grcity.us/incometax. Mail returns to: Grand Rapids Income Tax, P.O. Box 2528, Grand Rapids, MI
49501-2528.
Failure to attach documentation or attaching incorrect or incomplete documentation
will delay processing of the return or result in corrections being made to the return.
2010 GRAND RAPIDS GR-1040 INSTRUCTIONS FOR RESIDENTS, NONRESIDENTS AND PART-YEAR RESIDENTS
NEW ITEMS FOR 2010
must be paid (MCL 141.664). Filing an extension with payment is not a
substitute for making estimated tax payments. An extension does not
extend the time for paying the tax due.
New Tax Form. The new Grand Rapids income tax return form has
been designed for use by resident, nonresident and part-year resident
taxpayers. Reporting of income starts with categories of income
reported on the federal Form 1040 (1040A or 1040EZ) in the federal
return column. Income that is taxable on the federal and not taxable
under the Grand Rapids Income Tax Ordinance is reported in the
Exclusions and Adjustments column and explained in various
schedules in other parts of the return forms. The Income Subject to Tax
column is the difference between the income taxable on the federal
return and the Exclusions and Adjustments column.
Ordinance Changes: Tax Rate and Exemption Amount. The Grand
Rapids Income Tax Ordinance was amended twice in 2010. On May 4,
by a vote of the electorate, the tax rate was raised effective July 1,
2010. The resident tax rate was increased from 1.3% to 1.5%, and the
nonresident tax rate was increased from 0.65% to 0.75%. On May 11,
the City Commission voted to decrease the value of a personal and a
dependency exemption to $600 effective July 1, 2010.
Blended Tax Rate. Due to the tax rate increase, taxpayers may use a
blended tax rate (1.4% for residents and 0.7% for nonresidents) to
compute the amount of income tax due for 2010, or may elect to report
income and pay tax at the tax rate in effect for the different tax rate
periods in 2010.
Split Tax Rate. Taxpayers electing not to use the blended tax rate are
required to use Schedule TC (formerly Schedule L) to report taxable
income and compute the tax due.
2010 Exemption Amount. The value of an exemption in 2010 is $675.
Check Processing Notification. If you make an income tax payment
by check to the City, your check may be converted into an electronic
fund transfer. By completing and signing a check for payment, you
authorize us to copy your check and use the account information from
your check to make an electronic fund transfer from your account for
the amount of the check. If the electronic fund transfer cannot be
processed for technical reasons, you authorize us to process your
check. You will not receive your original check back from your financial
institution. For security reasons we will destroy your original check but
will keep a copy of the check for recordkeeping purposes.
AMENDED RETURNS
File amended returns on the GR-1040 and clearly mark AMENDED at
the top of the return. If a change on your federal return affects Grand
Rapids taxable income, you must file an amended return within 90 days
of the change and pay the tax due. Note to the left of the box on line 32
any tax paid or refunds received from the original return. Add any tax
paid and subtract any refunds received, and enter the total on line 32.
All schedules supporting the changes should accompany the filing.
Every change must be explained.
CHARGES FOR LATE PAYMENTS
All tax payments remaining unpaid after they are due are liable to a
penalty of 1% per month, not to exceed a total penalty of 25%, and
bear interest at the rate of 1% above the prime rate on an annual basis.
The minimum combined charge for interest and penalty is $2.00.
ASSISTANCE
If you have questions or need help preparing your return, call (616) 4563415 or visit the Income Tax office on the third floor at City Hall, 300
Monroe NW, Grand Rapids, Michigan. See www.grcity.us/incometax for
tax forms and other resources. Our mailing address is Grand Rapids
Income Tax, P.O. Box 2528, Grand Rapids, Michigan 49501-2528.
DISCLAIMER
These instructions are interpretations of the Uniform City Income Tax
Ordinance, MCLA 141.601 et seq. The City of Grand Rapids Ordinance
will prevail in any disagreement between these instructions and the
Ordinance.
COMPLETING YOUR RETURN
RESIDENCY STATUS
Resident – is a person whose domicile (principle residence) was in the
City of Grand Rapids all year. File as a resident if:
1. you were a resident the entire year, or
2. you were a resident for only part of the year and had no income
subject to tax while you were a nonresident. Exclude amounts
that are not subject to City tax in Column B.
Nonresident – is a person whose domicile (principle residence) was
outside the City of Grand Rapids all year. File as a nonresident if:
1. you were a nonresident the entire year, or
2. you were a nonresident for only part of the year but had no
income while you were a resident.
Part-Year Resident – is a person who changed their domicile (primary
residence) during the year from one inside Grand Rapids to one outside
Grand Rapids or vice versa. See website for the Grand Rapids Street
Directory of addresses located in the City: http://www.grcity.us.
WHO MUST FILE A RETURN
If you had Grand Rapids taxable income greater than the total of your
personal and dependency exemptions, you must file a tax return—even
if you did not file a federal tax return. The value of each exemption is
$675. You are allowed an exemption even if someone can claim you on
their federal return as a dependent. If you are blind or 65 years of age
or older, you are allowed an additional exemption.
You are required to file a tax return and pay tax even if your employer
did not withhold Grand Rapids tax from your paycheck. You will be
required to make estimated income tax payments if you work for an
employer not withholding Grand Rapids tax from your 2011 wages.
We accept paper filed and electronically filed returns. Only preparers
using City approved software can file electronic returns. Taxpayers may
prepare and E-file a return via the City’s website: http://www.grcity.us.
Married with Different Residency Status. If you were married in 2010
and had a different residency status from that of your spouse, file
separate returns or file a resident return with Form GR-1040TC.
ADDRESSES WHERE TAXPAYER AND SPOUSE RESIDED IN 2010
If you and/or your spouse, if a joint return, maintained your principal
residence at more than one location during the tax year, on page 2
under this heading, list each complete address, mark whether the
address was for the taxpayer (T), spouse (S) or both (B) and enter the
beginning and ending dates of residence for each address listed.
ESTIMATED TAX PAYMENTS
When your total income tax is greater than the amount withheld from
your pay (plus other credits) by $100 or more, you need to make
quarterly estimated tax payments. To do this, you must file a
Declaration of Estimated Income Tax (available on the Grand Rapids
website) by April 30 of the year and pay at least one-fourth (¼) of the
estimated tax. The rest is due in three equal payments on June 30 and
September 30 of the tax year and January 31 of the following year.
During the year, if your income increases so that $100 or more of tax
will be due, you must file a Declaration of Estimated Tax at that time.
TAX RETURN HEADING INFORMATION
• Always write your social security number(s) on the return.
Your social security number must agree with your W-2’s.
• Enter your name and your spouse’s name, if a joint return.
• If the taxpayer or spouse is deceased, attach a copy of federal
Form 1310, or a copy of the death certificate.
• Enter your current address under Present home address. If
using a P.O. Box, or an address that is not your legal residence,
you must add an attachment that states your actual residence.
• Write your occupation in the box provided.
• Indicate your residency status by checking the proper box. If you
were a resident for only part of 2010, use form GR-1040TC to
calculate your tax and attach it to the GR-1040.
• Mark the box to indicate your filing status.
Failure to make required estimated tax payments or underpayment
of estimated tax will result in assessment of penalty and interest.
If you have made estimated tax payments and do not owe more tax for
the year, you still must file a tax return.
DUE DATE AND EXTENSIONS
Returns are due on or before May 2, 2011. The due date of the annual
income tax return may be extended for a period not to exceed six
months. To apply for an extension, use the Application for Extension of
Time to File a Grand Rapids Income Tax Return. Applying for a federal
extension does not satisfy the requirement for filing a city extension.
Application for an extension must be made and the tentative tax due
Page 2
Attach a copy of federal Form 2106 or a list of your employee
business expenses.
3. Moving Expenses (line 21). Moving expenses for moving into
Grand Rapids are deductible to the same extent deductible under
the Internal Revenue Code. Moving must be related to starting
work in a new location. Attach a copy of federal Form 3903 or a
list of moving expenses, with the distance in miles from
where you moved.
4. Alimony Paid (line 22). Separate maintenance payments,
alimony, and principal sums payable in installments (to the extent
includable in the spouse's or former spouse’s adjusted gross
income under the federal Internal Revenue Code) and deducted
on your federal return are deductible. Child support is not
deductible. Attach a copy of page 1 of your federal return.
IMPORTANT: The above deductions are limited to the
amount claimed on your federal return, except meals. The
deductions are limited by the extent they apply to income
taxable under the Grand Rapids Income Tax Ordinance. Partyear residents must allocate deductions the same way they
allocate income.
5. Renaissance Zone (line 23). A Renaissance Zone deduction
may be claimed by a qualified resident domiciled in a
Renaissance Zone, an individual with income from rental real
estate located in a Renaissance Zone and an individual proprietor
or a partner in a partnership that has business activity within a
Renaissance Zone. Individuals who qualify for the deduction
must attach Schedule RZ of GR-1040R or GR-1040NR to their
return to claim the deduction. Residents are not qualified to claim
the deduction until they have been domiciled in a Renaissance
Zone for 183 consecutive days. Individuals are not qualified to
claim the Renaissance Zone deduction if they are delinquent for
any Michigan or Grand Rapids taxes. A Grand Rapids income tax
return must be filed to qualify and claim this deduction. Schedule
RZ is available on the website or at the Income Tax Office.
Renaissance Zones 1 – 6 are being phased out. In 2010 only
50% of the deduction is allowable.
EXEMPTIONS
On the Exemptions Schedule on p. 2, mark the boxes that apply to
yourself, and spouse if a joint return. Enter the names of the dependent
children that live with you and the names of any other dependents and
their relationship to you (do not state “Other”). Add the amounts in
boxes 1 and 2, and enter the total exemptions in box 3 and again on
page 1 after Exemptions.
Everyone who files a City return gets a personal exemption of $675 for
2010. If you are age sixty-five or older, or you are blind, you get an
extra exemption. You get an exemption even if someone else claims
you as a dependent on their return.
Determine dependents using the same rules that apply to your Federal
return. If you cannot claim a dependent on your federal return, you
cannot claim the person on your City return.
INCOME EXEMPT FROM CITY TAX
We do not tax the following types of income:
1. Social security, pensions and annuities (including disability
pensions), Individual Retirement Account (IRA) distributions
received after reaching age 59½.
2. Proceeds of insurance where the taxpayer paid policy premiums.
(Payments from a health and accident policy paid by an employer
are taxed the same as under the Internal Revenue Code).
3. Welfare relief, unemployment compensation, and supplemental
unemployment benefits.
4. Interest from obligations of the United States, the states or
subordinate units of government of the states and gains or losses
on the sales of obligations of the United States.
5. Military pay of members of the armed forces of the United States,
including Reserve and National Guard pay.
6. Michigan Lottery prizes won on or before December 30, 1988.
(Michigan lottery prizes won after December 30, 1988 are
taxable)
7. Sub-chapter S corporation dividends.
8. City, state and federal refunds.
NON-DEDUCTIBLE ITEMS
We do not allow deductions for items such as taxes, interest, medical
expenses, charitable contributions, casualty and theft losses, etc. In
addition, the following federal adjustments are not deductible on the
Grand Rapids return: Student loan interest, Archer MSA deduction,
self-employed health insurance deduction, one-half or self employment
tax, and penalty for early withdrawal of savings.
TOTAL INCOME AND TAX COMPUTATION
Round all figures to the nearest dollar.
Lines 1 – 17, Columns A & B – Enter Federal Data and Exclusions
In column A enter income from Federal Return. In column B enter
income NOT subject to Grand Rapids income tax (exclusions). Explain
exclusions by completing the applicable exclusions sections on pages 2
through 6 or on a separate attachment to the return.
Attach copies of federal schedules to support all entries on line 6, 7, 8,
11 and 12 of Column A.
Lines 1 – 17, Column C – Figure Taxable Income
Subtract column B from column A and enter difference in column C.
Support figures with schedules.
DEDUCTIONS FROM INCOME
You can only deduct amounts that directly relate to income that is
taxable by the City. You must prorate where necessary. The only
deductions are as follows:
1. Individual Retirement Account (IRA) Contributions (line 18).
Contributions to an IRA are deductible to the same extent
deductible under the Internal Revenue Code. Attach page 1 of
federal return and evidence of contribution, which includes,
but is not limited to, one of the following: a copy of receipt for IRA
contribution, a copy of federal Form 5498, a copy of a cancelled
check that clearly indicates it is for an IRA contribution. KEOGH,
SEP or SIMPLE retirement plan deductions must be entered on
page 2, line 25d. ROTH IRA contributions are not deductible.
2. Employee Business Expenses (line 19). Employee business
expenses are deductible only when incurred in the performance
of service for an employer and only to the extent not reimbursed
by the employer. Meal expenses are not subject to the reductions
and limitations of the Internal Revenue Code. Under the Grand
Rapids Income Tax Ordinance meals must be incurred while
away from home overnight on business to be deductible.
BUSINESS EXPENSES ARE LIMITED TO THE FOLLOWING:
A. Expenses of transportation, but not to and from work.
B. Expenses of travel, meals and lodging while away from home
overnight on business for an employer.
C. Expenses incurred as an “outside salesperson” away from the
employer's place of business. This does not include driversalesperson whose primary duty is service and delivery.
D. Expenses reimbursed by employer from an expense account
or other arrangement if included in gross earnings.
IMPORTANT: Business expenses claimed on line 4 of federal
Form 2106 are not allowed unless the taxpayer qualifies as
an outside salesperson.
Line 24 – Total Deductions
Add lines 18 through 23.
Line 25 – Total Income after Deductions
Subtract line 24 from line 17.
Line 26 – Exemption Credit
Multiply the number of exemptions allowed by $675.00.
Line 27 – Taxable Income
Subtract line 26 from line 25. If line 26 is greater, enter zero.
Line 28 – Compute Tax
Multiply line 27 by the proper tax rate to compute tax liability. If you
were a resident for only part of the year, use form GR-1040TC to
compute your tax and attach it to GR-1040.
PAYMENTS AND CREDITS
Line 29 – Grand Rapids Tax Withheld by Employers
On line 29 enter the amount of Grand Rapids tax withheld from your
pay. The W-2 (Wages and Tax Statement) you received from your
employer(s) shows the tax withheld in box 19. You must attach a copy
of the W-2 form(s) showing the ENTIRE AMOUNT of Grand Rapids
tax withheld. We will not allow the credit without these W-2 Forms.
Line 30 – Estimated Tax Payments and Credits
On line 30, enter the total of the following: the estimated tax paid, the
tax paid with an extension and the prior year credit carried forward.
Page 3
Direct withdrawal” and enter the routing number, account number, type
of account and the direct withdrawal effective date. If the effective date
is left blank, it will default to the date the return is processed.
Line 34 – Overpayment
If the total payments and credits on line 32 exceed tax on line 28, enter
the difference on line 34. Use lines 35 through 38 to indicate how you
would like the refund to be distributed.
Line 35 – Donations
You may donate your overpayment, or a part of it, to the following: to
purchase American flags for veterans’ graves in the City, to the Grand
Rapids Children’s Fund or to the Grand Rapids Parks’ Fund. Mark the
box in front of your choice(s) and enter the amount of the overpayment
you want to donate. Otherwise leave blank.
Line 36 – Credit Forward
Enter on line 36 the amount of overpayment to credit to the next year.
Lines 37 and 38 – Refund Check or Direct Deposit of Refund
Refund Check. Enter on Line 37 the amount of the overpayment to be
refunded by check. If you want your refund to be deposited into your
account, complete lines 38a, b and c.
Direct Deposit Refund. To have your refund deposited directly into
your bank account, on line 38, mark the box “Refund – Direct Deposit”
and enter (a) the bank routing number; (b) the bank account number;
and (c) the account type: checking or savings.
Please allow 45 DAYS before calling about a refund.
Line 31 – Other Tax Credits
Credit for Income Tax Paid to Another City. (Residents Only) Enter
on line 31 the credit for income taxes paid to the other city. If while you
were a resident, you had income subject to tax in another city, we will
allow you a credit on your return. The credit IS NOT NECESSARILY the
tax paid to the other city. This credit must be taxable by both cities and
may not exceed the tax that a nonresident of Grand Rapids would pay
on the same income earned in Grand Rapids. Report only the amount
you actually paid to another city, not the amount withheld. You must
attach a copy of the income tax return you filed with the other city
to receive this credit.
Credit for Tax Paid by a Partnership. Also include on line 31 the
income tax paid in your behalf by a partnership. Clearly indicate to the
left of the credit that it was paid by a partnership.
Credit for Tax Paid by an S-Corporation. A Grand Rapids resident
reporting and paying income tax on flow through income from an S
corporation may claim a credit for their proportionate share of income
tax paid by the S corporation to another city. This credit for tax paid by
an S corporation may not exceed the amount of income tax that a
corporation would pay if the income was taxable in Grand Rapids.
Documentation of tax paid should be attached.
Add the payments and credits on lines 29 - 31 and enter the total on
line 32.
You must file the return even if there is no tax due or overpayment.
TAX DUE OR REFUND
Line 33 – Balance Due and Payment of Tax
If the tax due on line 28 exceeds the total Payments and Credits on line
32, enter the difference, the tax due, on this line. The tax due must be
paid with the return when filed, or by the due date.
Pay by Check or Money Order. Make payable to GRAND RAPIDS
CITY TREASURER, and mail with the return to Grand Rapids Income
Tax, P.O. Box 2528, Grand Rapids, Michigan 49501-2528.
Pay by Direct Withdrawal from Bank Account. To make payment by
direct withdrawal, complete line 38. Check the box to “Pay tax due –
FINALIZE THE RETURN
Choose a Third-Party Designee. To allow someone to discuss the tax
return information with the Income Tax Office, mark the “Yes” box and
enter the person’s name, phone number and any five digits as their
personal identification number (PIN). To designate the tax preparer,
enter “Preparer” as designee’s name.
Sign the Return. You must sign and date the return. If filing a joint
return, both spouses must sign and date it. If someone else prepared it,
they must sign and provide their address and telephone number.
PART-YEAR RESIDENTS
residents as a guide to allocate income.
The booklet does not include Schedule TC. To get this schedule, call
(616) 456-3415 or print it from our website: www.grcity.us/incometax.
NOTE: Copies, schedules and other documentation that support
exclusions, adjustments and deductions must be attached. Failure to
attach support or attaching incomplete supporting information will delay
the processing of your return or result in deductions being disallowed.
If you had income taxable as a resident and as a nonresident during the
year, you must file as a part-year resident. Part-year residents compute
the amount of their tax on Schedule TC, which has multiple tax rates.
Complete the form using the instructions on the Schedule TC.
Income is allocated according to the residency status for each item of
income. Adjustments and deductions must be allocated in the same
way income is allocated. Use the instructions for residents and non-
RESIDENTS
Line 1 – Wages, Salaries, Tips, Etc.
Report on line 1, column A, the amount of wages, salaries, tips, etc.
from your federal tax return (Form 1040, Form 1040A, Form 1040EZ).
The front page of the federal tax return must be attached to all City
resident tax returns.
A resident is taxed on ALL earnings, including salary, bonus,
separation, and incentive payments, tips, commissions and other
compensation for services renders—no matter where earned.
Example: Taxpayer lives in the City of Grand Rapids but works in
Lansing and receives his paycheck from the home office in New York
City: 100% of this compensation is taxable.
If your employer did not withhold Grand Rapids tax from your paycheck,
you are still required to file and pay tax on those wages at the resident
tax rate. You will also be required to make estimated tax payments if
you employer does not withhold Grand Rapids tax for you in 2011.
On Schedule W, Form GR-1040, p. 3, Line 1 - Schedule of Wages,
Salaries, Tips, Etc., use data from Form W-2, box 1, of each
employer to report wages. Do not use box 18. Follow instructions on
Schedule W. You must list on this schedule any adjustments and
exclusions to wages; see lines 16, 17, and 23.
Report on line 1, column A (page one of the return), the total from line
21 of this schedule. Report on line 1, column B, exclusions from line 23.
Attach all W-2 forms showing wages and the tax withheld to p. 1 of the
return form.
Line 2 – Interest
Interest is taxable the same as on the federal return except for interest
on U.S. Bonds, Treasury Bills and notes which may be excluded.
Report the amount of taxable interest income from federal 1040, on line
2, column A. Exclude interest from U.S. Bonds and Treasury Bills and
notes (on p. 2, Excludible Interest and Dividend Income schedule) and
list this non-taxable interest on p. 1, line 2, column B. S corporation flow
through interest income is taxable unless from a federal government
obligation.
Line 3 – Dividends
Dividends are taxable. Report on line 3, column A, the total amount of
dividend income from the federal return. In column B, exclude dividends
from U.S. Bonds, Treasury Bills and notes. S corporation flow through
dividend income is taxable unless from a federal government obligation.
Line 4 – Taxable Refunds, Credits or Offsets
NOT TAXABLE. Exclude all. No explanation needed.
Line 5 – Alimony Received
Alimony received is taxable. Report on line 5, column A, the amount of
alimony received as reported on the federal return.
Line 6 – Business Income
All self-employment income is taxable regardless of where the business
is located. Report on line 6, column A, the total business income from
the federal return. Attach a complete copy of federal Schedule C.
Federal rules concerning passive losses are applicable to losses
deducted on a city return.
Page 4
Excluded pension and retirement benefits are reported on line 10,
column B and explained on the Line 10 - Exclusions and Adjustments
to Pension Distributions schedule, p. 4. Pension and retirement benefits
received from the following are not taxable:
1. Pension plans that define eligibility for retirement and set
contribution and benefit amounts in advance;
2. Qualified retirement plans for the self-employed;
3. Distributions from a 401(k) or 403(b) plan attributable to employer
contributions or attributable to employee contributions to the extent
they result in matching contributions by the employer;
4. IRA distributions received after age 59½ or described by Section
72(t)(2)(A)(iv) of the IRC;
5. Benefits from any of the previous plans received on account of
disability or as a surviving spouse if the decedent qualified for the
exclusion at the time of death;
6. Benefits paid to an individual from a retirement annuity policy that
has been annuitized and paid over the life of the individual.
Premature pension plan distributions (those received prior to qualifying
for retirement) are taxable.
Also taxable are amounts received from deferred compensation plans
that let the employee set the amount to be put aside and do not set
retirement age or requirements for years of service. These plans
include, but are not limited to, plans under Sections 401(k), 457 and
403(b) of the Internal Revenue Code (IRC): Amounts received before
the recipient could retire under the plan provisions, including amounts
paid on separation, withdrawal or discontinuance of the plan. Amounts
received as early retirement incentives, unless the incentives were paid
from a pension trust.
Benefits paid to an individual from a retirement annuity policy other than
annuitized benefits paid over the life of the individual are taxable to the
same extent taxable under the Internal Revenue Code.
Report pension and retirement income taxable by Grand Rapids on line
10, column C.
Line 7 – Capital Gains or Losses
The Uniform City Income Tax Ordinance follows the Internal Revenue
Code regarding capital gains. All capital gains realized while a resident
are taxable regardless of where the property is located, with the
following exceptions:
1. Capital gains on sales of obligations of the United States and
subordinate units of government.
2. The portion of the capital gain (or loss) on property purchased prior
to the inception of the Grand Rapids income tax ordinance that is
attributed to the time before inception ordinance.
3. Capital loss carryovers that originated prior to the taxpayer
becoming a resident of Grand Rapids are not deductible.
Capital losses are allowed to the same extent they are allowed under
the Internal Revenue Code and limited to $3,000 per year. Unused net
capital losses may be carried over to future tax years. The capital loss
carryover for Grand Rapids may be different than the carryover for
federal income tax purposes.
Deferred capital gain income from installment sales and like-kind
exchanges are taxable in the same year as on the taxpayer’s federal
income tax return.
Flow through income (or loss) from an S corporation reported on federal
Schedule D is taxable. Attach copies of federal Schedule K-1 (Form
1120S).
Residents reporting capital gains (or losses) must attach a copy of
federal Schedule D.
Excluded capital gains must be explained on p. 2, Line 7 - Exclusions
and Adjustments to Capital Gains and Losses schedule.
Line 8 – Other Gains and Losses
Other Gains and Losses are taxable to the extent that they are taxable
on the federal 1040. Other gains and losses realized while a resident
are taxable regardless of where the property is located except the
portion of the gain or loss on property purchased prior to the inception
of the Grand Rapids Income Tax Ordinance.
Deferred other gains from installment sales and like-kind exchanges
are taxable in the year recognized on the federal income tax return.
Deferred gains must be supported by attaching a copy of federal Form
6252 and/or Form 8824.
Residents reporting other gains and losses must attach a copy of
federal Form 4797.
Flow through income (or loss) from an S corporation reported on federal
Form 4797 of a resident is taxable. Report this on line 8, Column C.
Attach copies of federal Schedule K-1 (Form 1120S.
Use the Line 8 - Exclusions and Adjustments to Other Gains and
Losses on p. 6 to compute exclusions and adjustments to other gains
and losses reported on your federal income tax return.
Line 11 – Rental Real Estate, Royalties, S Corporations, Partnerships, Royalties, Estates, Trust, Etc.
All income reported on federal Schedule E is taxable. A resident’s
share of an S corporation’s flow through income is taxable to the same
extent and on the same basis the income is taxable under the Internal
Revenue Code. Report this income on line 11, column C.
Line 13 – Farm Income (Or Loss)
Profit or loss from the operation of a farm is taxable as reported on the
federal return regardless of where the farm is located. There are no
exclusions. Attach a complete copy of federal Schedule F.
Line 14 – Unemployment Compensation
NOT TAXABLE. Exclude all. No explanation needed.
Line 15 – Social Security Benefits
NOT TAXABLE. Exclude all. No explanation needed.
Line 16 – Other Income
Other income reported on the federal return of a resident is taxable
except for income from recoveries related to federal itemized
deductions from prior tax years. Report on this line a net operating loss
carryover from the previous tax year. Report exclusions and
adjustments on p. 2, using the Line 16 - Exclusions and Adjustments to
Other Income schedule.
Line 17 – Total Income
Add lines 1 through 16 of each column and enter amounts on line 17.
Lines 18 through 23 – Deductions
See “Deductions from Income” for allowable deductions. List deductible
amounts on the corresponding lines.
Line 9 – IRA Distributions
In column A enter the IRA distributions reported on federal Form 1040
or Form 1040A. Premature IRA distributions (Form 1099-R, box 7,
distribution code 1) and IRA distributions made to a decedent’s
beneficiary other than the decedent’s spouse (Form 1099-R, box 7,
distribution code 4) are taxable. Report these in column C.
Exclude in column B, IRA distributions qualifying as retirement benefits:
IRA distributions received after age 59½ or described by Section 72(t)
(2)(A)(iv) of the IRC and all other IRA distributions. Explain on Line 9
Exclusions and Adjustments to IRA Distributions schedule, p. 4.
Line 10 – Taxable Pension Distributions
Enter on line 10, column A, the pension and annuities reported on
federal Form 1040 or Form 1040A.
NONRESIDENTS
The following income is subject to tax:
1. Compensation for work done or services performed in Grand Rapids
(includes salaries, wages, bonuses, commissions, fees, tips,
incentive payments, severance pay, vacation pay and sick pay).
2. Net profits of from the operation of an unincorporated business,
profession or other activity attributable to business activity
conducted in Grand Rapids, whether or not such business is located
in Grand Rapids.
3. Gains or losses from the sale or exchange of real or tangible
personal property located in Grand Rapids.
4 Net profits from the rental of real or tangible personal property
located in Grand Rapids.
5. Premature distributions from an Individual Retirement Account (IRA)
where a deduction was claimed on a current or previous year’s city
income tax return.
6. Premature distributions from a pension plan attributable to work
performed in Grand Rapids.
7. Deferred compensation earned in Grand Rapids.
Line 1 – Wages, Salaries, Tips, Etc.
List all employers, wages and tax withheld on Schedule W, Line 1 Schedule of Wages, Salaries, Tips, Etc. (p. 3). All W-2 forms showing
income earned in Grand Rapids and/or tax withheld for Grand Rapids
must be attached to the return. Follow instructions on Schedule W.
Page 5
Rapids. Deferred other gains and losses from installment sales and
like-kind exchanges of property located in Grand Rapids are taxable in
the year recognized on the taxpayer’s federal income tax return.
Deferred other gains must be supported by attaching a copy of federal
Form 6252 and/or Form 8824.
Flow through income (or loss) from an S corporation reported on federal
Form 4797 is excluded on the Line 8 - Exclusions and Adjustments to
Other Gains and Losses schedule on p. 6. Attach copies of federal
Schedule K-1 (Form 1120S).
Nonresidents reporting other gains and losses must attach a copy of
federal Form 4797. Use the Exclusions and Adjustments to Other
Gains and Losses schedule to compute exclusions and adjustments to
other gains and losses reported on the federal income tax return.
Line 9 – IRA Distributions
That portion of a premature IRA distribution that was deducted from a
city’s taxable income in the current or a prior tax year (those reported
on Form 1099-R, box 7, distribution code 1) are taxable to a
nonresident. IRA distributions received after age 59 ½ or described by
Section 72(t)(2)(A)(iv) of the IRC are not taxable.
Line 10 – Taxable Pension Distributions
Premature pension plan distributions (those received by a nonresident
prior to qualifying for retirement) are taxable to the same extent the
normal wages from the employer are taxable.
A nonresident remaining employed by the particular employer in Grand
Rapids may not exclude amounts received from deferred compensation
plans that let the employee set the amount to be put aside and do not
set retirement age or requirements for years of service. These plans
include, but are not limited to, plans under Sections 401(k), 457 and
403(b) of the Internal Revenue Code (IRC): Amounts received before
the recipient could retire under the plan provisions, including amounts
paid on separation, withdrawal or discontinuance of the plan. Amounts
received as early retirement incentives, unless the incentives were paid
from a pension trust. See Line 10 under “Residents” for additional
information on nontaxable pension and retirement benefits.
Explain all adjustments and exclusions to wages on Schedule W. Do
not use box 18 of W-2 form to report taxable wages or to allocate
wages: use box 1 wages only. A separate wage allocation must be
completed for each employer. Wages are normally allocated using the
actual number of days or hours worked in and outside Grand Rapids
during the tax year for an employer. Vacation time, sick time and
holidays are not included in total days worked in arriving at the wage
allocation percentage. Vacation pay, holiday pay, sick pay, bonuses,
severance pay, etc. are taxable to same extent as normal earnings.
100% Earned in Grand Rapids. All wages, salaries, tips, sick pay,
bonuses, deferred compensation, severance pay, and other
compensation (Form W-2, box 1) is taxable to nonresidents who
worked 100% of the time in the City.
Allocate Total Wages. Nonresidents who performed only part of their
services for an employer in the City must allocate their wages using
W-2 form box 1 amount, not box 18. Compute excludible wages on
Schedule W, Nonresident and Part-Year Resident Wage Allocation.
Wage Allocations on Commissions, Etc. A nonresident salesperson
paid on a commission basis or other results achieved should allocate
wages based on commissions received or other results achieved
attributable to efforts expended in Grand Rapids. A nonresident
insurance salesperson paid sales commissions and renewal
commissions should allocate compensation on the following basis:
Allocate commissions from life, health, accident and vehicle (auto)
insurance based on the location (residence) of the purchaser. Allocate
commissions from group insurance based on the location of the group.
Allocate commissions from fire and casualty insurance based on the
location of the risk insured.
Nonresidents working totally outside the City for an employer should
exclude all of these wages on lines 16, and complete lines 17 and 18 of
Schedule W.
Line 2 – Interest
NOT TAXABLE. Exclude all interest income. No explanation needed.
Line 3 – Dividends
NOT TAXABLE. Exclude all dividend income. No explanation needed.
Line 4 – Taxable Refunds, Credits or Offsets
NOT TAXABLE. Exclude all. No explanation needed.
Line 5 – Alimony Received
NOT TAXABLE. Exclude all. No explanation needed.
Line 6 – Profit (Or Loss) from a Business, Etc.
Profit (or loss) from the operation of a business or profession is taxable
to the extent it results from work done, services rendered or other
business activities conducted in Grand Rapids. Determine the taxable
profit (or loss) using the three factor Business Allocation Percentage
formula, on p. 5. A Grand-Rapids net operating loss carryover from the
previous tax year is reported on line 16, column C.
Where no work is done, services rendered or other business activity is
conducted in Grand Rapids, the profit (or loss) is excluded. Complete
the Line 6 - Exclusions and Adjustments to Business Income on p. 5 to
exclude profit or loss from the operation of a business or profession.
Line 7 – Capital Gains or Losses
Capital gains (or losses) of a nonresident are included in taxable
income to the extent the gains (or losses) are from property located in
Grand Rapids. Capital losses from property located in Grand Rapids
are allowed to the same extent they are allowed under the Internal
Revenue Code. Unused capital losses may be carried over to future tax
years. The capital loss carryover for Grand Rapids may be different
than the carryover for federal income tax purposes.
Deferred capital gain income from installment sales and like-kind
exchange of property located in Grand Rapids are taxable in the year
recognized on the taxpayer’s federal income tax return.
Flow through income (or loss) from an S corporation reported on
Schedule D of a nonresident is excluded on the Line 7 - Exclusions and
Adjustments to Capital Gains and Losses schedule on p. 2. Attach
copies of federal Schedule K-1 (Form 1120S).
Use the Line 7 - Exclusions and Adjustments to Capital Gains and
Losses schedule on p. 2 to compute exclusions and adjustments to
capital gains. NOTE: A common error on a nonresident return is failure
to complete the Line 7 - Exclusions and Adjustments schedule to
exclude the capital loss carryover reported on the taxpayer’s federal
income tax return.
Line 8 – Other Gains and Losses
Other gains and losses of a nonresident are included in taxable income
to the extent the gains (or losses) are from property located in Grand
Line 11 – Rental Real Estate, Royalties, Partnerships, S Corporations, Estates, Trusts, Etc.
All income reported on the federal Schedule E that comes from
business activity in Grand Rapids or property located in Grand Rapids
is taxable to nonresidents. When an estate or trust has taxable income
in the City, the estate or trust must file a return and pay tax on
distributions to nonresidents and on undistributed taxable income.
The following is excludable: Income reported on federal Schedule E
coming from business activity or property outside Grand Rapids; S
corporation flow through income (or loss) reported on Schedule E; and
income from estates and trusts. Explain all exclusions on the Line 11 Exclusions and Adjustments to Income from Rental Real Estate,
Royalties, Partnerships, S Corporations, Trusts, Etc. schedule on p. 6.
Line 13 – Farm Income (Or Loss)
A nonresident’s profit (or loss) from a farm are included in city income
to the extent the profit (or loss) results from work done, services
rendered or other activities conducted in Grand Rapids. The portion of
the profit (or loss) reported on the City return is determined by use of
the three factor Business Allocation Percentage formula. Where no
work is done, services rendered or other business activity is conducted
in Grand Rapids, the entire farm profit (or loss) is excluded, using the
Line 13 - Exclusions and Adjustments to Farm Income schedule on p. 6
to exclude profit or loss from the operation of a farm.
Line 14 – Unemployment Compensation
NOT TAXABLE. Exclude all. No explanation needed.
Line 15 – Social Security Benefits
NOT TAXABLE. Exclude all. No explanation needed.
Line 16 – Other Income
Other income is taxable if it is from work performed or other activities
conducted in Grand Rapids. Use Line 16 - Exclusions and Adjustments
to Other Income schedule on p. 2 of return to document exclusions and
adjustments. Report on this line a Grand Rapids-related net operating
loss carryover from the previous tax year.
Line 17 – Total Income
Add lines 1 through 16 of each column and enter amounts on line 17.
Lines 18 through 23 – Deductions
Deductions are limited by the extent they relate to income taxable under
the Grand Rapids income tax ordinance. Nonresidents must allocate
deductions the same way related income is allocated. See a list of
deductions and related instructions under “Deductions from Income.”
Page 6
GRAND RAPIDS
GR-1040
2010
INDIVIDUAL RETURN
DUE MAY 2, 2011
Your social security number
Your first name
Initial Last name
Spouse's soc sec number
If joint return, spouse's first name
Initial Last name
Your occupation
Present home address (Number and street)
Spouse's occupation
Address line 2 (P.O. Box address form mailing use only)
For official
use only
Apt. no.
Enter name and address used on 2009 return. If same
as this year, print "Same." (If none filed, give reason.)
City, town or post office, state and zip code
RESIDENCY STATUS
Resident
Nonresident
FILING STATUS
Single
Married filing jointly
INCOME
Part-year resident
From
Married filing separately
Enter spouse's SSN and
full name here. >>>
EXEMPTIONS
Enter number of exemptions
from page 2, box 3
Column A
Federal Return Data
ROUND ALL FIGURES TO NEAREST DOLLAR
1.
Wages, salaries, tips, etc.
1
ATTACH
2.
Taxable interest
2
COPY OF
3.
Ordinary dividends
3
PAGE 1 OF 4.
Taxable refunds, credits or offsets
4
FEDERAL 5.
Alimony received
5
RETURN
6.
Business income (Attach copy of federal Schedule C.)
7.
Capital gains or losses (Attach copy of federal Schedule D.)
8.
Other gains or losses (Attach copy of federal Form 4797.)
9.
Taxable IRA distributions
W-2
FORMS
HERE
Column C
Taxable Income
NOT TAXABLE
7
8
9
10
11. Rental real estate, royalties, partnerships, S corporations, trusts, etc. (Attach copy of fed. Sch. E.)
11
12. Reserved
12
13. Farm income or loss (Attach copy of federal Schedule F.)
13
14. Unemployment compensation
14
NOT TAXABLE
15. Social security benefits
15
NOT TAXABLE
16. Other income (Attach statement listing type and amount.)
16
17.
17
Total income (Add lines 1 through 16.)
DEDUCTIONS
See instructions. Deductions must be allocated on the same basis as related income.
18. IRA deduction (Attach copy of page 1 of federal return & evidence of payment.)
18
19. Self Employed SEP, SIMPLE and qualified plans (Attach copy of page 1 of federal return.)
19
20. Employee business expenses (See instructions and attach copy of federal Form 2106.)
20
21. Moving expenses (Into City area only) (Attach copy of federal Form 3903.)
21
22. Alimony paid (DO NOT INCLUDE CHILD SUPPORT. Attach copy of page 1 of federal return.)
22
23. Renaissance Zone deduction (Attach Schedule RZ OF 1040.)
23
24.
Total deductions (Subtractions) (Add lines 18 through 23.)
24
25.
Total income after deductions (Subtract line 24 from line 17.)
25
26. Amount for exemptions (Number of exemptions (_____) times exemption amount, $675.)
26
27.
Total income subject to tax (Subtract line 26 from line 25.)
27
28. Tax
(Multiply line 27 by 1.4% (0.014) for residents, 0.7% (0.007) for nonresidents or check following box and attach Schedule TC)
28
PAYMENTS AND CREDITS
(If line 33 exceeds $100 see instructions for making estimated tax payments.)
29. Tax withheld by your employer (Attach W-2 Forms showing tax withheld.)
29
30. Payments on 2010 Declaration of Estimated Income Tax, payments with an extension and credits forward from 2009
30
31. Credit for tax paid to another city and for tax paid by a partnership (Attach copy of other city's return.)
31
32.
ENCLOSE
CHECK OR
MONEY
ORDER
Column B
Exclusions and
Adjustments
6
Federal Schedule D not required.
10. Taxable pension distributions (Attach copy of Form 1099-R.)
ATTACH
Check box if you need a return
form mailed to you next year.
to
Total payments and credits (Add lines 29 through 31.)
32
33. If tax (line 28) is larger than payments (line 32) you owe tax (Enter tax due.)
PAY WITH RETURN. >>>
MAKE CHECK OR MONEY ORDER PAYABLE TO: GRAND RAPIDS CITY TREASURER OR PAY WITH A
TAX DUE
DIRECT ELECTRONIC WITHDRAWAL (Mark pay tax due on line 38, enter effective date and complete line 38 a, b & c.)
Check box to opt out from electronic check conversion. See signature block area on page 2 for additional information.
OVERPAYMENT
35. Donations to :
33
34. If total payments and credits (line 32) are larger than tax (line 28) enter overpayment
a. American flags for veterans'
graves in Grand Rapids >
b. Grand Rapids
Children's Fund >
34
c. Grand Rapids
Parks' Fund >
36. Amount of Overpayment to be credited forward to 2011
Mark one:
35
Amount of credit to 2011 >> 36
37. Amount of Overpayment to be refunded (For direct deposit mark refund box on line 38 and complete line 38 a, b & c.)
38. Direct deposit refund or direct withdrawal payment
Total
donations >
Refund - Direct deposit
Refund check amount >> 37
Pay tax due - Direct withdrawal
(Default is date processed)
a. Routing number
Direct withdrawal effective date:
/
b. Account number
c. Type of account:
Savings
MAIL TO: Grand Rapids Income Tax Office, PO Box 2528, Grand Rapids, MI 49501
Checking
/
Form GR-1040 (2010), page 1
FORM GR-1040, PAGE 2
EXEMPTIONS
SCHEDULE
Taxpayer's name
Date of birth
Taxpayer's SSN
Regular
65 or over
Blind
Box 1
Enter the number of boxes
checked on lines 1a and 1b
1a. You
1b. Spouse
2. Dependents
First Name
Last Name
Social Security Number
Relationship
Date of Birth
Enter number of dependents
claimed on federal return and
list to the left (add a schedule
if more than 6)
Box 2
Total number of exemptions
(Enter total of boxes 1 and 2
here and also in the
Exemptions box on page 1)
Box 3
ADDRESSES WHERE TAXPAYER AND/OR SPOUSE RESIDED DURING TAX YEAR AND DATES OF RESIDENCY
INDICATE
FROM
MONTH DAY
ADDRESS (INCLUDE Grand Rapids, STATE & ZIP CODE)
T, S, B
Nonbusiness interest and dividend income of a nonresident is totally excluded.
LINES 2 & 3 - EXCLUDIBLE INTEREST AND DIVIDEND INCOME
Excludible interest income
TO
MONTH DAY
Excludible dividend income
Interest from federal obligations
Dividends from federal obligations
Other excludible interest income (Attach detailed explanation)
Other excludible dividend income (Attach detailed explanation)
Excludible interest income (Enter total here and on page 1, line 2, Column B)
Excludible dividend income (Enter total here and on page 1, line 3, Column B)
LINE 7 - EXCLUSIONS AND ADJUSTMENTS TO CAPITAL GAINS AND LOSSES
RESIDENT RETURN
NONRESIDENT RETURN
Gains and losses on securities issued by U.S. Government
Gains and losses on property located outside of Grand Rapids
Portion of gains and losses occurring prior to 7/1/1967 (Attach a schedule
that identifies and shows 'the calculation for each)
Adjustment for unallowed capital loss carryover from period prior to
residency
Adjustment for difference between federal and Grand Rapids capital loss
carryover from prior year's return
Portion of Grand Rapids gains and losses occurring prior to 7/1/1967
(Attach a schedule that identifies and shows the calculation for each)
Gains and losses from Sub. S corporations (Attach schedule)
Adjustment for difference between federal and Grand Rapids capital loss
carryover from prior year's return
Adjustment to limit capital loss to $3,000
Adjustment to limit capital loss to $3,000
Total nonresident exclusions and adjustments to capital gains and losses
(Enter total here and on page 1, line 7, Column B)
Remember, deferred gains from sales of property located in Grand Rapids or property sold
while a resident of Grand Rapids are taxable when reported on federal return.
Attach copy of federal Schedule D and supporting schedules to return.
Total resident exclusions and adjustments to capital gains and losses
(Enter total here and on page 1, line 7, Column B)
Attach copy of federal Schedule D and all supporting schedules to return.
LINE 16 - EXCLUSIONS AND ADJUSTMENTS TO OTHER INCOME
RECEIVED FROM
FEDERAL I.D. #
For use by residents and nonresidents
NATURE OF INCOME
AMOUNT
Total exclusions and adjustments to other income (Enter total here and on page 1, line 16, Column B)
THIRD-PARTY DESIGNEE
Do you want to allow another person to discuss this return with the Income Tax Office?
Yes. Complete the following.
Designee's
name
Phone
No.
(
No
)
Personal identification
number (PIN)
I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief they are true, correct and complete.
Electronic Check Conversion: When your payment is made by check, the City of Grand Rapids may electronically debit your checking account for the amount of your
check on the day that we receive your payment. If the payment is processed electronically, the check will not be returned with your checking account statement, but will
be reflected as an ‘electronic payment’. The City of Grand Rapids will consider receipt of a payment by check as authorization to process your payment electronically.
You can opt out from electronic check conversion by checking opt out box on page 1, line 32.
SIGN TAXPAYER'S SIGNATURE - If joint return, both spouses must sign Date
HERE
===>
SPOUSE'S SIGNATURE
Date
Daytime phone number
(
)
PREPARER'S
SIGNATURE
If prepared by a person other than taxpayer, the preparer's declaration is based on all information of which preparer has any knowledge.
SIGNATURE OF PREPARER OTHER THAN TAXPAYER
Date
PTIN, EIN or SSN
Preparer's phone number
Firm's name (or yours if self employed), address and ZIP code
(
)
Form GR-1040 (2010) page 2
FORM GR-1040, PAGE 3
Taxpayer's name
Taxpayer's SSN
Schedule W
LINE 1 - SCHEDULE OF WAGES, SALARIES, TIPS, ETC.
Use this form to provide details for all Forms W-2 and all items of income reported on federal Form 1040, line 7, Form 1040A, line 7, or Form 1040EZ, line 1, such as: wages received as a
household employee for which you did not receive a W-2 form; tip income not reported to employer; allocated tips shown on Form(s) W-2, box 8; dependent care benefits; employer provided
adoption benefits; scholarship and fellowship grants not reported on Form W-2; excess salary deferrals; disability pensions shown on Form 1099-R if the taxpayer has not reached the minimum
retirement age set by the employer; corrective distributions from a retirement plan shown on Form 1099-R from excess salary deferrals and excess contributions (plus earnings); and wages from
Form 8919, line 6.
Statutory Employees include data from Form W-2, but enter a zero (0) on line 5 and enter "Statutory Employee" on line 16.
If more than 5 employers add additional pages of schedule to accommodate the number of separate employers.
Employer 1
Employer 2
Employer 3
Employer 5
Employer 4
1. Employer's ID Number.
(Form W-2, box b)
2. Employer's name.
(Form W-2, box c)
3. Enter T for taxpayer's employer
or S for Spouse's employer.
4. Dates of employment during tax From
year.
5. Form W-2, Box 1, Wages, tips,
other compensation.
6. Form W-2, Box 19-1, Local
Income tax withheld.
7. Form W-2, Box 20-1, Locality
name.
8. Form W-2, Box 19-2, Local
Income tax withheld.
9. Form W-2, Box 20-2, Locality
name.
10. Form W-2, Box 19-3, Local
Income tax withheld.
11. Form W-2, Box 20-3, Locality
name.
12. Form W-2, Box 19-4, Local
Income tax withheld.
13. Form W-2, Box 20-4, Locality
name.
14. Wages taxable at resident tax
rate. (Used to report wages of a
resident regardless of where
earned)
15. Wages taxable at nonresident
tax rate. (Used to report wages
earned in GR while a
nonresident)
16. Excludable wages (Line 5 less
lines 14 and 15)
17. Reason excludible wages (line
16) are not taxable.
18. Street address of work station.
(Where you actually work)
To
From
To
From
To
From
To
From
To
19. Grand Rapids deductible
employee business expenses.
20. Total wages for all employers. (Add line 5 for all employers) (This amount should be equal to
amount reported on page 1, line 1, Column A)
21. Total wages taxable at the resident tax rate. (Add line 14 for all columns) (Enter here and also on page 1, line 1, column C) (Partyear residents enter here and on Schedule TC, columns C and/or D)
22. Total wages taxable at the nonresident tax rate. (Add line 15 for all columns) (Enter here and also on page 1, line 1, column C)
Part-year residents enter here and on Schedule TC, columns E and/or F)
23. Total excludible wages from all employers. (Add line 16 for all columns) (Enter here and also on page 1, line 1, Column B) (Partyear residents enter here and on Schedule TC, column B)
24. Total Grand Rapids tax withheld. (Add amounts for all employers on lines 6, 8, 10 and 12 where locality name on the related locality name line (7, 9, 11 and 13)
represents Grand Rapids) (Enter here and also on page 1, line 29)
NONRESIDENT AND PART-YEAR RESIDENT WAGE ALLOCATION
For use by nonresidents or part-year residents who worked both in and outside of Grand Rapids while a nonresident. Part-year residents must use wage allocation to determine wages
earned in Grand Rapids while a nonresident; use only wages and days worked while a nonresident for computing allocation.
25.
26.
27.
28.
29.
30.
31.
NONRESIDENT WAGE
ALLOCATION
Enter actual number of days or
hours on job for employer during
period. (Do not include
weekends you did not work.)
Vacation, holiday and sick days
or hours included in line 25.
Actual number of days or hours
worked. (Line 25 less line 26)
Enter actual number of days or
hours worked in Grand Rapids.
Percentage of days or hours
worked in Grand Rapids. (Line
28 divided by line 27) (Default is
100%)
Wages earned in Grand Rapids.
(Line 5 times line 29)
Excludible wages from
employer. (Line 5 less line 30)
Employer 1
Employer 2
%
Employer 3
%
Employer 4
%
Employer 5
%
%
Form GR-1040, Page 3
Taxpayer's name
FORM GR-1040, PAGE 4
LINE 9 - EXCLUSIONS AND ADJUSTMENTS TO IRA DISTRIBUTIONS
Taxpayer's SSN
Schedule R
List all IRA distributions reported as taxable on federal return
Enter T for
Payer's federal
taxpayer or S
ID Number
for Spouse
Federally taxable
IRA distributions
Payer's name
Distribution
Code (Form
1099-R, box 7)
Excludible IRA
distributions
Total Federally taxable IRA distributions (Add lines above for this column.
Amount should equal the amount reported on page 1, line 9, Column A)
Total excludible IRA distributions (Enter here and also on page 1, line 9, Column B)
LINE 10 - EXCLUSIONS AND ADJUSTMENTS TO PENSION DISTRIBUTIONS
List pension distributions reported as taxable on federal return
Enter T for
Payer's federal
taxpayer or S
ID Number
for Spouse
Payer's name
Kind of pension
distribution
(employer's
pension plan
distribution, 401k
plan distribution,
457 plan
distribution, etc.)
Federally taxable
pension
distributions
Distribution
Excludible pension
Code (Form
distributions
1099-R, box 7)
Total Federally taxable pension distributions (Add lines above for this column. Amount
should equal the amount reported on page 1, line 10, Column A)
Total excludible pension distributions (Enter here and also on page 1, line 10, Column B)
Form GR-1040, Page 4
Taxpayer's name
FORM GR-1040, PAGE 5
LINE 6 - EXCLUSIONS AND ADJUSTMENTS TO BUSINESS INCOME
Taxpayer's SSN
For use by nonresidents to compute excludible business income
BUSINESS INCOME
Business 1
Business 2
Business 3
Business 4
1. Net profit (or loss) from business or profession (From
federal Schedule C)
2. Business allocation percentage (Enter the amount from
line 12 for the business)
3. Allocated net profit (loss) (Line 1 times line 12 for the
business)
4. Excludible net profit (loss) (Line 1 less line 3)
5. Total exclusions and adjustments to net profit (loss) (Add
line 4 for all businesses, enter here and on Form GR1040, page 1, line 6, column B)
BUSINESS 1
BUSINESS ALLOCATION FORMULA
COLUMN 1
COLUMN 2
COLUMN 3
EVERYWHERE
IN GRAND RAPIDS
PERCENTAGE
6. Average net book value of real and tangible personal property
(Column 2 divided
by column 1)
7. Gross rents paid on real property multiplied by 8
8. Total property
%
9. Total wages, salaries and other compensation of all employees
%
10. Gross receipts from sales made or services rendered
%
11. Total percentages (Add the percentages computed in column 3)
%
12. Business allocation percentage (Divide line 11 by the number of factors used, default is 100%)
* In determining the average percentage, if a factor does not exist, you must divide the total of the percentages by the number of factors used.
* If you are authorized to use a special formula, attach a copy of the administrator's approval letter and attach a schedule detailing calculation.
* Use a separate Business Allocation Formula for each separate business (Federal Schedule C)
* Net operating loss from prior year are reported on line 16, Other income.
%
BUSINESS 2
BUSINESS ALLOCATION FORMULA
COLUMN 1
COLUMN 2
COLUMN 3
EVERYWHERE
IN GRAND RAPIDS
PERCENTAGE
6. Average net book value of real and tangible personal property
(Column 2 divided
by column 1)
7. Gross rents paid on real property multiplied by 8
8. Total property
%
9. Total wages, salaries and other compensation of all employees
%
10. Gross receipts from sales made or services rendered
%
11. Total percentages (Add the percentages computed in column 3)
%
12. Business allocation percentage (Divide line 11 by the number of factors used, default is 100%)
%
BUSINESS 3
BUSINESS ALLOCATION FORMULA
COLUMN 1
COLUMN 2
COLUMN 3
EVERYWHERE
IN GRAND RAPIDS
PERCENTAGE
6. Average net book value of real and tangible personal property
(Column 2 divided
by column 1)
7. Gross rents paid on real property multiplied by 8
8. Total property
%
9. Total wages, salaries and other compensation of all employees
%
10. Gross receipts from sales made or services rendered
%
11. Total percentages (Add the percentages computed in column 3)
%
12. Business allocation percentage (Divide line 11 by the number of factors used, default is 100%)
%
BUSINESS 4
BUSINESS ALLOCATION FORMULA
COLUMN 1
COLUMN 2
EVERYWHERE
IN GRAND RAPIDS
6. Average net book value of real and tangible personal property
7. Gross rents paid on real property multiplied by 8
COLUMN 3
PERCENTAGE
(Column 2 divided
by column 1)
8. Total property
%
9. Total wages, salaries and other compensation of all employees
%
10. Gross receipts from sales made or services rendered
%
11. Total percentages (Add the percentages computed in column 3)
%
12. Business allocation percentage (Divide line 11 by the number of factors used, default is 100%)
%
FORM GR-1040, PAGE 6
Taxpayer's name
Taxpayer's SSN
LINE 8 - EXCLUSIONS AND ADJUSTMENTS TO OTHER GAINS AND LOSSES
RESIDENT AND NONRESIDENT RETURNS
1. Nonresident's gains and losses on property located outside of Grand Rapids
2. Portion of gains and losses occurring prior to 7/1/1967 that are not included in line 1 (Attach a schedule that identifies and
shows the calculation for each gain or loss included on this line)
3. Total excludible nonresident other gains and losses (Add lines 1 and 2, enter here and on Form GR-1040, page 1, line 8,
Column B)
* Remember, deferred gains from property located in Grand Rapids or property sold while a resident are taxable.
* Attach a copy of federal Form 4797 and all supporting schedules to return to explain. (Form 4797 must identify property
LINE 11 - EXCLUSIONS AND ADJUSTMENTS TO INCOME FROM RENTAL REAL ESTATE,
ROYALTIES, PARTNERSHIPS, S CORPORATIONS, TRUSTS, ETC.
RESIDENTS
No exclusions or adjustments allowed on a resident return.
Attach a copy of each Schedule K-1 (1120-S) pages 1 and 2 to your return.
Attach copy of federal Schedule E.
NONRESIDENTS
1. Rental income (loss) from real estate located outside of Grand Rapids
2. Royalties on property located outside of Grand Rapids
3. Partnership income (loss) from partnership business activity outside of Grand Rapids
4. Subchapter S corporation income (loss)
5. Trust income (loss) for activities located outside of Grand Rapids
6. Total excludible income from rental real estate, royalties, partnerships, S corporations, trusts, etc. (Add lines 1 through 5,
enter here and on Form GR-1040, page 1, line 11, Column B)
Attach a schedule detailing the complete address of each piece of rental real estate.
Attach a schedule detailing name and ID number of each partnership and amount of adjustment.
Attach a schedule detailing name and ID number of each Sub. S Corp. and amount of adjustment.
Attach copy of federal Schedule E.
LINE 13 - EXCLUSIONS AND ADJUSTMENTS TO FARM INCOME
For use by nonresidents to compute excludible Farm income. No exclusions or adjustments to farm income are allowed on a resident return.
FARM INCOME
Farm 1
1. Net profit (or loss) from farm (From federal Schedule F)
2. Farm allocation percentage (Enter the amount from line 12
for the farm)
3. Allocated net profit (loss) from farm (Line 1 times line 12
for the farm)
4. Excludible net profit (loss) from farm (Subtract Line 3 from
line 1, enter here and on page 1, line 13, Column B)
FARM ALLOCATION FORMULA
6. Average net book value of real and tangible personal property
COLUMN 1
EVERYWHERE
7. Gross rents paid on real property multiplied by 8
COLUMN 2
IN GRAND RAPIDS
COLUMN 3
PERCENTAGE
(Column 2 divided
by column 1)
8. Total property
9. Total wages, salaries and other compensation of all employees
10. Gross receipts from sales made or services rendered
11. Total percentages (Add the percentages computed in column 3)
12. Farm allocation percentage (Divide line 11 by the number of factors used, default is 100%)
*
*
*
*
In determining the average percentage, if a factor does not exist, you must divide the total of the percentages by the number of factors used.
If you are authorized to use a special formula, attach a copy of the administrator's approval letter and attach a schedule detailing calculation.
Use a separate Business Allocation Formula for each separate business (Federal Schedule C)
Net operating loss from prior year are reported on Line 16, Other income.
%
%
%
%
%
PART-YEAR RESIDENT TAX CALCULATION
SCHEDULE TC
THIS SCHEDULE IS TO BE ATTACHED TO GR-1040
Grand Rapids
(Formerly Schedule L of GR-1040R)
Taxpayer's name
FORM GR-1040, SCHEDULE TC
Taxpayer's SSN
This form is for use by:
1. RESIDENTS required or electing to report income based upon the period of time the income was received. Residents must use
columns A through D to calculate the Grand Rapids income tax due.
2. NONRESIDENTS required or electing to report income based upon the period of time the income was received. Nonresidents
must use columns A, B, E and F to calculate the Grand Rapids income tax due.
3. PART-YEAR RESIDENTS. A part-year resident must use columns A and B and the the proper resident or nonresident columns
C, D, E or F, based upon the time the income was received, to calculate the Grand Rapids income tax due. A part-year resident
is also required to complete dates of residency, Box A, and the former addresses for the taxpayer and spouse, box B below.
A. PART-YEAR RESIDENCY PERIOD
Taxpayer
Spouse
EXEMPTIONS
From
B. PART-YEAR RESIDENT'S FORMER ADDRESS
Taxpayer
Spouse
To
Enter total number of exemptions. (Form GR-1040, page 2, box 3.)
Column A
Federal return data
(1/1 to 12/31/2010)
INCOME
Column B
Exclusions and
Adjustments
Column C
Resident Income
(1/1 to 6/30/2010)
Column D
Resident Income
(7/1 to 12/31/2010)
Column E
Nonresident Income
(1/1 to 6/30/2010)
Column F
Nonresident Income
(7/1 to 12/31/2010)
1.
Wages, salaries, tips, etc.
1
2.
Taxable interest
2
NOT TAXABLE
NOT TAXABLE
3.
Ordinary dividends
3
NOT TAXABLE
NOT TAXABLE
4.
Taxable refunds, credits or offsets
4
5
5.
Alimony received
5
6.
Business income (Fed. Sch. C.)
6
7.
Capital gains or losses (Fed. Sch. D.)
7
NOT TAXABLE
NOT TAXABLE
NOT TAXABLE
NOT TAXABLE
NOT TAXABLE
NOT TAXABLE
8.
Other gains or losses (Fed. Form 4797.)
8
9.
Taxable IRA distributions
9
10.
Taxable pension distributions (Form 1099-R.)
11.
Rental real estate, etc. (Fed. Sch. E.)
11
12.
Reserved
12
13.
Farm income or loss (Fed. Sch. F.)
13
14.
Unemployment compensation
14
NOT TAXABLE
NOT TAXABLE
NOT TAXABLE
NOT TAXABLE
15.
Social security benefits
15
NOT TAXABLE
NOT TAXABLE
NOT TAXABLE
NOT TAXABLE
16.
Other income (Attach statement.)
16
1.5% (0.015)
0.65% (0.0065)
0.75% (0.0075)
17.
Total income (Add lines 1 through 16.)
DEDUCTIONS
10
17
See instructions. Deductions must be allocated on the same basis as related income.
18.
IRA deduction (Attach page 1 of federal return.)
19.
Self Employed SEP, SIMPLE (Att. pg. 1 of fed. ret.) 19
18
20.
Employee business expenses (Att. Fed. Form 2106.) 20
21.
Moving expenses (Att. Fed. Form 3903.)
22.
Alimony paid ( Attach page 1 of federal return.)
22
23.
Renaissance Zone deduction (Att. Sch. RZ .)
23
21
24.
Total deductions (Add lines 18 through 23.)
24
25.
Total income after deductions (Subtract line 24 from line 17.)
25
26.
Amount for exemptions (Number of exemptions (_____) times $675.)
Enter the total value of exemptions in the first column used. If the amount for exemptions on
line 26 of the column is greater than the total on line 25 of the column, enter the excess
exemption amount ( line 26 less line 25 of the column) on line 26 of the next column used
and continue the computation across all columns used.
27a.
27b.
26
Total income subject to tax as a resident (Subtract line 26 from line 25.)
27a
Total income subject to tax as a nonresident (Subtract line 26 from line 25.)
27b
1.3% (0.013)
TAX RATES
28a.
Tax at resident rate
(MULTIPLY LINE 27a BY RESIDENT TAX RATE.)
28a
28b.
Tax at nonresident rate
(MULTIPLY LINE 27b BY NONRESIDENT TAX RATE.)
28b
28c.
Total tax (Add lines 28a and 28b.)
(ENTER HERE AND ON GR-1040, LINE 28)
28c
2
2010 Schedule TC, revised 01/19/2011
FORM GR-1040, WORKSHEET
Taxpayer's name
Taxpayer's SSN
LINE 18 - WORKSHEET FOR COMPUTATION OF NONRESIDENT'S IRA DEDUCTION
TAXPAYER
GRAND RAPIDS
OTHER
SPOUSE
GRAND RAPIDS
OTHER
TOTAL
EARNED INCOME
Earned income
Federal IRA deduction
Grand Rapids earned income
percentage
Divide individual's Grand Rapids earned income
by individual's total earned income.
Grand Rapids IRA deduction
based upon individual's earned
income
Individual's federal IRA deduction multiplied by
Grand Rapids earned income percentage.
Amount individual's federal IRA
deduction exceeds individual's
earned income
Individual's federal IRA deduction less
individual's earned income.
Amount spouse's earned
income exceeds spouse's
federal IRA deduction
Spouse's total earned income less spouse's
federal IRA deduction.
Grand Rapids IRA deduction
based upon spouse's earned
income
If individual's federal IRA deduction exceeds
individual's earned income and spouse's earned
income exceeds spouse's federal IRA
deduction, enter the lesser of the individual's
excess IRA or spouse's excess earned income
multiplied by spouse's Grand Rapids earned
income percentage, else enter zero (0).
Grand Rapids IRA deduction
dd individual's
d dua s Grand
G a d Rapids
ap ds IRA deduction
deduct o
Add
based upon their own Grand Rapids earned
income and their Grand Rapids IRA deduction
based upon spouse's earned income.
Total Grand Rapids IRA deduction
Add taxpayer's and spouse's Grand Rapids IRA
deduction. (Enter also on Form GR-1040, page
1, Column C
Enter earned income and federal IRA deduction data. The other data in the schedule are to be calculated.
LINE 22 - ALIMONY DEDUCTION CALCULATION WORKSHEET
Residents claim the entire amount of alimony from federal return.
Nonresidents use following calculation to compute alimony deduction allowed.
A part-year resident may claim the amount of alimony paid while a resident and only
a percentage of the alimony paid as a nonresident. The deductible percentage of
alimony paid while a nonresident is computed as follows:
1. Compute the taxable income for Grand Rapids as a nonresident prior to the alimony adjustment;
2. Compute the portion of federal AGI as a nonresident prior to the alimony adjustment;
3. Divide amount computed in number 1 by amount computed in number 2;
4. Compute the amount of alimony paid while a nonresident; and
5. Multiply the percentage computed in number 3 by the alimony paid while a nonresident in number 4.
1. Federal Adjusted Gross Income
2. Alimony from federal return, line 31a
3. Income for alimony deduction computation (Line 1 plus line 2)
4. Taxable income for Grand Rapids prior to alimony deduction
5. Percentage (Line 4 divided by line 3)
6. Grand Rapids alimony deduction (Line 2 multiplied by line 5, enter
here and on Form GR-1040, line 22, Column C)
7. Grand Rapids alimony deduction (Line 2 multiplied by line 5, enter
here and on Form GR-1040, line 22, Column C)
LINE 20 - EMPLOYEE BUSINESS EXPENSE
Form GR-2106
Name of individual
1.
2.
3.
4a.
4b.
5.
6.
7.
8.
9.
10.
11.
Occupation (List for each
employer.)
Vehicle expenses
Individual's social security number
Column 1
As reported on
federal Form 2106
Employer # 1
Employer's ID #
Employer # 2
Employer's ID #
Employer # 3
Employer's ID #
Employer # 4
Employer's ID #
Employer # 5
Employer's ID #
Parking, fees, tolls and local
transportation, including train,
bus, etc.
Travel expenses while away
from home overnight, including,
lodging, airfare, car rental, etc.
Were you an outside
salesperson? (Answer yes or no
in the column for each
employer. See definition of
outside salesperson below.)
Business expenses not included
on lines 1 through 3 (Do not
include meals and
entertainment.) (Enter amount
for the employer only if line 4a
of column is yes. (See
instruction below.)
Meals (See meal expenses
instruction below.)
Add lines 1,2, 3, 4b and 5 and
enter the total expenses here
Enter reimbursements received
from your employer for
expenses included in line 6 that
were not reported to you in box
1 of Form W-2
Business expense deduction
(Subtract line 7 from line 6.)
Percentage deductible (Same
percentage related wages are
taxable)
Allowable business expense
deduction (Line 8 times line 9)
Total business expense
deduction (Add amounts in line
10 for employers 1 through 5,
enter here and on Form GR1040, page 1, line 20)
Line 4 instructions
Business expenses reported on line 4 of federal Form 2016 are allowed as a expense on the Grand Rapids return only
when the individual employee qualifies as a outside salesperson when the expenses were incurred.
Outside salesperson
An “outside salesperson” is one who solicits business while working away from the employer’s place of business as a
full-time salesperson. If the individual is required to spend a stated period of time selling at the employer’s place of
business as part of their job, the individual is not an outside salesperson. If the individual only performs incidental
activities there, such as writing up and handing in orders, the individual qualifies for the expense deduction. A
salesperson whose principal activity is service and delivery is not an “outside salesperson.” An inside salesperson who
makes incidental outside calls and sales is not an “outside salesperson.”
Meal expenses
Under the Uniform City Income Tax Ordinance meal expenses are allowed only when incurred while away from home.
No deduction is allowed for entertainment unless incurred by an outside salesperson.
Revised: 10/15/2010
LINE 31 WORKSHEET
Taxpayer's name
Taxpayer's SSN
LINE 31 - CREDIT FOR TAX PAID TO ANOTHER CITY, TAX PAID BY A PARTNERSHIP
AND/OR TAX PAID BY AN S-CORPORATION
Credit for tax paid to another city may be claimed by residents only.
Part-year residents may claim the credit for tax paid to another city only on income also taxable as a resident.
Credit for tax paid by an S corporation may be claimed by residents only.
Credit for tax paid by a partnership may be claimed by resident and nonresident partners.
CREDIT FOR TAX PAID TO ANOTHER CITY (Residents only)
OTHER CITY'S NAME
Total credit for tax paid to another city.
TAX CREDIT
(May be claimed by residents only.)
CREDIT FOR TAX PAID BY PARTNERSHIPS OR S CORPORATIONS
PARTNERSHIP OR S CORPORATION NAME AND TAX ID NUMBER
TAX CREDIT
Total credit for tax paid by a partnership and/or S corporations
Total credit for tax paid to another city, tax paid by a partnership and/or tax
paid by S corporation (Enter total here and on Form GR-1040, page 1. line 31)
CALCULATION OF CREDIT FOR TAX PAID TO ANOTHER CITY
(Residents only)
Income taxable in the nonresident city that is also taxable in Grand Rapids
(Same amount for both cities.)
Exemptions amount per city's return
Taxable income for credit
Tax for credit purposes at each city's
nonresident tax rate
Credit allowed (Smaller of resident city's or other city's tax)
CALCULATION OF CREDIT FOR TAX
PAID BY AN S-CORPORATION
(Residents only)
Name of city where S corporation paid tax
Corporation income tax paid to city by S corporation
Corporation income tax rate of Grand Rapids and other cities where S
Corporation paid corporation income tax
GRAND RAPIDS
OTHER CITY
GRAND RAPIDS
OTHER CITY
OTHER CITY
OTHER CITY
Grand Rapids
If the corporate tax rate of the other city is less than the corporate tax rate for
Grand Rapids, enter the tax paid by the S corporation to the other city,
otherwise enter the total tax that would have been paid to the other city if their
corporation tax rate was the same as the Grand Rapids corporation tax rate.
(Computation if other city's corporate tax rate is higher than the Grand Rapids
corporation tax rate: [Grand Rapids corporate tax rate] / [other city's
corporation tax rate] * [corporation tax paid to other city])
Taxpayer's percentage of ownership of S corporation (from federal Schedule
K-1 (Form 1120s), line H)
Enter the taxpayer's proportionate share of the corporation tax paid to Grand
Rapids and the taxpayer's proportionate share of the lesser of the corporation
tax paid to the other city or the tax that would have been paid if the other city's
corporation income tax rate was the same as the Grand Rapids corporation
tax rate
Credit allowed for tax paid by S corporation (add amounts on above line and
enter total here)
Revised: 10/15/2010