City of Highland Park
Income Tax Department
P.O. Box 239
Eaton Rapids, MI 48827-0239
Form HP-1040
2016 HIGHLAND PARK
INDIVIDUAL INCOME TAX
FORMS AND INSTRUCTIONS
PRSRT STD
US Postage
PAID
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For use by individual residents,
part-year residents and nonresidents
– IF LABEL APPEARS BELOW
IMPORTANT
PLEASE PEEL OFF LABEL AND
AFFIX TO AREA DESIGNATED
ON INCOME TAX RETURN.
CITY OF HIGHLAND PARK INCOME TAX
2016
ALL PERSONS HAVING HIGHLAND PARK TAXABLE INCOME IN 2016 MUST FILE A RETURN
TAX RETURNS ARE DUE APRIL 30, 2017
MAILING ADDRESS
BALANCE DUE RETURNS
City of Highland Park 1040 Payments
P.O. Box 239
Eaton Rapids, MI 48827
TAX RATES
EXEMPTIONS
ALL OTHER RETURNS
City of Highland Park
P.O. Box 239
Eaton Rapids, MI 48827
Resident: 2%
Nonresident: 1%
Exemption value: $600
Tax must be paid at the time you file your return if you owe $1.00 or more.
PAYMENT
OF TAX DUE
NOTE: If you are paying $100.00 or more with your 2016 return, you may need to make estimated income tax
payments for 2017. See page 2 for instructions.
Make check or money order payable to: CITY OF HIGHLAND PARK
YOUR RETURN
CONTACT US
Tax returns are due April 30, 201.7
Forms are available online at www.Highlandparkcity.org.
For assistance contact the Hamtramck Income Tax Department at 3401 Evaline Ave, Hamtramck, Michigan or call
(313) 603-3118.
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.
2016 HIGHLAND PARK FORM HP-1040 INSTRUCTIONS FOR RESIDENTS, NONRESIDENTS AND PART-YEAR RESIDENTS
WHO MUST FILE A RETURN
If you had Highland Park 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. See Exemptions schedule for
more information on your allowable exemption total. You are required
to file a tax return and pay tax even if your employer did not
withhold Highland Park tax from your paycheck. You will be required
to make estimated income tax payments if you work for an employer not
withholding Highland Park tax from your 2017 wages.
ESTIMATED TAX PAYMENTS
When your total income tax is greater than the amount of tax withheld
plus other credits by $100 or more, you may be required to make
quarterly estimated tax payments. File Form HP-1040ES (available on
the Highland Park website) by April 30 of the tax year and pay at least
one-fourth (¼) of the estimated tax. The remaining estimated tax is due
in three equal payments on June 30 and September 30 of the tax year
and January 31 of the following year. Adjust the remaining quarterly
payments if your income increases or decreases during the year.
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 April 30, 2017. 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, file Form HP-4868, Application for
Automatic Extension of Time to File an Individual Income Tax Return.
Applying for a federal extension does not satisfy the requirement for
filing a Highland Park extension. Application for an extension must be
made and the tentative tax due 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.
When an extension form is filed and the balance due is paid, it may be
assumed that the extension is automatically granted unless otherwise
notified. Interest and penalty is charged on taxes paid late even if an
extension of time to file is granted. Penalty may be waived by the
Income Tax Administrator if the tax paid by the original due date is not
understated by more than 5% of tax or the corporation can show that
the failure to pay on time was due to reasonable cause.
AMENDED RETURNS
File amended returns using the HP-1040 Clearly mark AMENDED at
the top of the return. If a change on your federal return affects Highland
Park taxable income, you must file an amended return within 90 days of
the change and pay the tax due. An adjustment must be made for tax
paid or refunds received from the original return. Write in the tax paid or
refunds received to the left of the box on page 2, Payments and Credits
schedule, line 4; Include the tax paid and subtract refunds from the
original return when totaling amended return payments and credits. All
schedules supporting the changes should accompany the filing. Every
change must be explained. Mail amended returns to: Highland Park
Income Tax, P.O. Box 239, Eaton Rapids, MI 48827-0239.
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.
DISCLAIMER
These instructions are interpretations of the Uniform City Income Tax
Ordinance, MCLA 141.601 et seq. The Highland Park Income Tax
Ordinance will prevail in any disagreement between these instructions
and the Ordinance.
COMPLETING YOUR RETURN
NAME, ADDRESS, SOCIAL SECURITY NUMBER
Always write your social security number(s) on the return. Your
social security number must agree with the SSN on the Form(s) W-2
attached to your return.
Enter your name and, if a joint return, your spouse’s name.
If the taxpayer or spouse is deceased: attach a copy of federal Form
1310 or a copy of the death certificate; write deceased in the
signature area; and enter the date of death in the box on the signature
line of return.
Enter your current address under Present home address. If using a
PO Box, or an address that is not your legal residence, you must add
an attachment that states your actual residence.
Mark the box to indicate your filing status.
Resident – a person whose domicile (principle residence) was in the
City of Highland Park all year. File as a resident if you were a resident
the entire year.
Nonresident – a person whose domicile (principle residence) was
outside the City of Highland Park all year. File as a nonresident if you
were a nonresident the entire year.
Part-Year Resident – a person who changed their domicile (primary
residence) during the year from one inside Highland Park to one outside
Highland Park or vice versa. If you were a resident for only part of 2016,
use form HP-1040TC to calculate the tax and attach it to the HP-1040.
Married with Different Residency Status. If you were married in 2016
and had a different residency status from that of your spouse, file
separate returns or file a resident return using Form HP-1040TC to
compute the tax.
FILING STATUS
Indicate filing status by marking (X) the proper box. If married filing
separately, enter spouse’s Social Security number in the spouse’s SSN
box and enter the spouse’s full name in the filing status box.
INCOME EXEMPT FROM HIGHLAND PARK INCOME TAX
Highland Park does 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. City, state and federal refunds.
ITEMS NOT DEDUCTIBLE ON THE HIGHLAND PARK TAX RETURN
Highland Park does 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 Highland Park 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.
FORM HP-1040, PAGE 1, INSTRUCTIONS
TOTAL INCOME AND TAX COMPUTATION
Round all figures to the nearest dollar.
Lines 1 – 16, Columns A & B – Federal Data and Exclusions
NOTE: Schedules, attachments and other documentation that support
tax withheld, exclusions, adjustments or deductions must be provided.
Failure to attach or attaching incomplete supporting information will
delay processing of your return or result in tax withheld, exclusions,
adjustments or deductions being disallowed.
Lines 1 - 16, Column C – Figure Taxable Income
Subtract column B from column A and enter difference in column C.
Support figures with schedules.
Line 17 – Total Additions
Add lines 2 through 16.
Line 18 – Total Income
Add lines 1 through 17.
Line 19 – Total Deductions
Enter the total deductions from line 7 of Deductions schedule, page 2.
Line 20 – Total Income after Deductions
Subtract line 19 from line 18.
Line 21 – Exemptions
Enter the total number of exemptions (page 2, Exemptions schedule,
line 1h) on line 21a and multiply line 21a by $600.00 and enter the
product on line 21b.
Line 22 – Total Income Subject to Tax
Subtract line 21b from line 20. If line 21b is greater, enter zero.
Line 23 – Tax
Multiply line 22 by the appropriate tax rate to compute tax liability, and
enter it on line 23b. (The resident tax rate is 2%. The nonresident rate
is 1%.) If you were a resident for only part of the year and used
Schedule TC to compute your tax, mark (X) line 23a and attach
Schedule TC to the return.
RESIDENCY STATUS
Indicate your residency status by marking (X) the proper box.
Page 2 of 6
2016 HIGHLAND PARK FORM HP-1040 INSTRUCTIONS FOR RESIDENTS, NONRESIDENTS AND PART-YEAR RESIDENTS
Line 24 – Total Payments and Credits
Enter the line 4 total from the Payments and Credits schedule on page
2. You must file the return even if there is no tax due or overpayment.
Line 25 – Estimated Tax or Late Payment Interest and Penalty
Nonpayment or underpayment of estimated income tax and late
payment of tax is subject to penalty and interest. You may calculate the
amounts and enter penalty on line 25a, interest on 25b, and the total
interest and penalty on line 25c or the city may calculate and assess it.
Calculate estimated tax interest and penalty using Form 1040ES.
TAX DUE OR REFUND
Line 26 – Tax Due and Payment of Tax
If the tax on line 23b plus the interest and penalty on line 25c exceeds
the total Payments and Credits on line 24, enter the difference, the tax
due, on line 26. The tax due must be paid with the return when filed.
The due date for the return is April 30, 2017.
Pay by Check or Money Order. Make the check or money order
payable to the CITY OF HIGHLAND PARK, place the check or money
order in front of page 1 of the tax form and mail the return with the
payment to: Highland Park Income Tax, P.O. Box 239, Eaton Rapids,
MI 48827-0239. Do not send cash for your tax payment. The tax is due
at the time of filing the return.
Line 27 – Overpayment
If the total payments and credits on line 24 exceed the tax on line 23
plus the interest and penalty on line 25c, enter the difference, the
overpayment, on line 27. Use lines 28 through 31 to indicate what you
want done with the refund. You must file the return even if there is no
tax due, no overpayment or only a slight overpayment.
Line 29 – Credit Forward
Enter on line 29 the amount of overpayment to credit to the next year.
Line 30 – Refund
Enter on Line 30 the amount of the overpayment to be refunded. Your
refund will be issued as a paper check.
Please allow 45 DAYS before calling about a refund.
FORM HP-1040, PAGE 2 INSTRUCTIONS
EXEMPTIONS SCHEDULE
Complete the Exceptions schedule to report and claim the total
exemptions amount allowed. Everyone who files a Highland Park return
gets a personal exemption of $600 for 2016. You may claim an
exemption even if someone else claims you as a dependent on
their return.
Lines 1a - 1c – You and Spouse. Enter your date of birth and mark (X)
the exemption boxes that apply to you. If filing jointly, complete line 1b
for spouse. If you are age sixty-five or older or you are blind, you get an
additional exemption. Mark (X) the boxes that apply, and enter on line
1e the total number of exemption boxes marked.
Lines 1d – Dependents. Determine dependents using the same rules
as on the federal return. If you cannot claim a dependent on the federal
return, you cannot claim them on a Highland Park return. Enter the
names of your dependent children that live with you, then the names of
other dependents and their relationship to you. Provide dependents’
Social Security numbers and dates of birth. Enter totals on 1f and 1g.
Lines 1e - 1h – Total Exemptions. Add the amounts on 1e, 1f and 1g,
and enter the total exemptions on line 1h and on page 1, line 21a.
EXCLUDED WAGES SCHEDULE
If any wages reported on page 1, line 1, column A, are not taxable, the
Excluded Wages schedule must be completed. The data to complete
this schedule comes from the Wages, Excludible Wages and City Tax
Withheld schedule.
DEDUCTIONS SCHEDULE
You may deduct amounts that directly relate to income that is taxable by
Highland Park, prorating where necessary. Allowable deductions
include the following line number items:
Line 1 – Individual Retirement Account (IRA) Contributions
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. ROTH IRA contributions are not deductible.
Line 2 – Self-Employed SEP, SIMPLE and Qualified Plans
Self-employed SEP, SIMPLE and qualified retirement plan deductions
may be entered on page 2, Deductions schedule, line 2.
Line 3 – Employee Business Expenses
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
Highland Park Income Tax Ordinance meals must be incurred while
away from home overnight on business.
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.
NOTE: Business expenses claimed on line 4 of fed. Form 2106 are
not allowed unless taxpayer qualifies as an outside salesperson.
Attach a copy of Form HP-2106, federal Form 2106 or a list of your
employee business expenses.
Line 4 – Moving Expenses
Moving expenses for moving into the Highland Park area 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.
Line 5 – Alimony Paid
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 the federal return are deductible. Child support
is not deductible. Attach a copy of federal return, page 1.
NOTE: 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 Highland Park
Income Tax Ordinance. Part-year residents must allocate
deductions the same way they allocate income.
Line 6 – Renaissance Zone
The 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 HP-1040 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 Highland Park taxes. A Highland Park
income tax return must be filed to qualify and claim this deduction.
Line 7 – Total Deductions
Add lines 1 through 6. Enter the total on line 7 and on page 1, line 19.
PAYMENTS AND CREDITS SCHEDULE
Line 1 – Highland Park Tax Withheld by Employers
The city tax withheld by each of your employers is to be reported on
Lines 7 through 10 of the Wages, Excludible Wages and City Tax
Withheld schedule. Total Highland Park tax withheld, line 17 of this
schedule, is reported on Form HP-1040, page 2. Payments and Credit
schedule, line 1. The Form W-2 (Wages and Tax Statement) you
received from each of your employers shows the tax withheld in box 19
and the locality name in box 20.
You must attach a copy of W-2 form(s) showing the entire amount
of HIGHLAND PARK tax withheld and Highland Park (or an
abbreviated form of Highland Park) as the locality name. We will not
allow the credit for Highland Park tax withheld without W-2 Forms.
Line 2 – Tax Payments Other Than Tax Withheld
On line 2, enter the total of the following: estimated tax paid, tax paid
with an extension, tax paid paid by a partnership and credit forward from
past tax year.
Line 3 – Tax Credit for Tax Paid (Residents only)
Enter on line 3 the credit for income taxes paid to the other city. If you
had income subject to tax in another city while you were a resident of
Highland Park, you may credit this credit. The credit is 1%
of the taxable income. This credit must be based on income
taxable by both cities, and the credit may not exceed the tax that a
nonresident of Highland Park would pay on the same income earned
in Highland Park. You must attach a copy of the income tax return
filed with the other city to receive this credit.
Page 3 of 6
2016 HIGHLAND PARK FORM HP-1040 INSTRUCTIONS FOR RESIDENTS, NONRESIDENTS AND PART-YEAR RESIDENTS
Line 4 – Total Payments and Credits
Add lines 1 through 3. Enter the total on line 4 and on page 1, line 24.
ADDRESS SCHEDULE
Every taxpayer must complete the Address schedule. Start by listing the
address used on last year’s return. If this address is the same as listed
on page 1, write “Same.” If no 2015 return was filed provide reason
none was filed. Complete the schedule by listing the addresses of the
other principal residences (domiciles) occupied during 2016.Mark
whether the address was for the taxpayer (T), spouse (S) or both (B)
and enter the beginning and ending dates of residence at each.
THIRD-PARTY DESIGNEE
To allow another person to discuss the tax return information with the
Income Tax Department, mark (X) 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.”
SIGN THE RETURN
You must sign and date the return. If filing a joint return, both spouses
must sign and date the return. If someone else prepared the return, they
must sign it and provide their address and telephone number.
PART-YEAR RESIDENT INSTRUCTIONS
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 nonresidents as a guide to allocate income.
Schedule TC and other Highland Park tax forms are available on the
Highland Park website: WWW.HIGHLANDPARKCITY.ORG. To have a
form mailed to you call (313) 603-3118. You must attach copies of proof
of move in/move out to support adjusted income.
RESIDENT INSTRUCTIONS
Line 1 – Wages, Salaries, Tips, Etc.
The front page of the federal tax return must be attached to all
resident tax returns. All W-2 forms showing wages and Highland
Park tax withheld must be attached to page 1 of the return.
Complete the Wages, Excludible Wages and City Tax Withheld
schedule to report all wages, excludible wages and tax withheld. The
total wages from line 15 of this schedule should equal the wages
reported on Form HP-1040, page 1, line 1, column A, and the wages
reported on your federal tax return, Form 1040, Form 1040A or Form
1040EZ.
A resident is taxed on ALL earnings, including salary, bonus,
separation, and incentive payments, tips, commissions and other
compensation for services rendered—no matter where earned.
Example: Taxpayer lives in the City of Highland Park but works in
Highland Park and receives a paycheck from the home office in New
York City: 100% of this compensation is taxable.
If your employer did not withhold Highland Park 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 Highland Park tax for you in 2016.
Report on line 1, column B, the total excluded wages. All nontaxable
wages must be documented on the Wages, Excludible Wages, and City
Tax Withheld schedule and listed by employer on the Excluded Wages
schedule on Form 1040, page 2. A resident’s wages are generally not
excludible. An example of excludible (nontaxable) resident wages is
military pay.
Line 2 – Interest
Interest is taxable to the same extent on the federal return except for
interest from U.S. Bonds, Treasury Bills, Treasury notes and flow
through interest income from a tax option corporation (S corporation,
Etc.). .
Report the amount of taxable interest income from federal 1040, on line
2, column A. Report on line 2, column B, interest from U.S. Bonds and
Treasury Bills and notes; document this excluded interest on the
Excludible Interest Income schedule. Document the excluded interest
on the Excludible Interest Income schedule.
Line 3 – Dividends
Dividends are taxable. Report on line 3, column A, the total amount of
dividend income from the federal return. Report on line 3, column B,
excludible dividends from U.S. Bonds, Treasury Bills, Treasury notes
and tax option corporations (S corporations, etc.). Document the
excluded dividends on the Excludible Dividend Income schedule.
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, columns A and C, 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, columns A and C, 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 Highland Park return.
Line 7 – Capital Gain or (Loss)
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 Highland Park 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 Highland Park 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 Highland Park 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 reported on the taxpayer’s
federal income tax return.
Flow through income from a tax option corporation (S corporation)
reported on federal Sch D or form 4797 is income. Losses on an
S-Corp cannot be transferred to HP-1040.
Attach copies of federal Sch. K-1 (Form 1120S).
Residents reporting capital gains or losses must attach a copy of
federal Schedule D.
Excluded capital gains must be explained by completing and attaching
the Exclusions and Adjustments to Capital Gains or (Losses) schedule.
Line 8 – Other Gains or (Losses)
Other gains or 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
Highland Park 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.
Use the Exclusions and Adjustments to Other Gains or (Losses)
schedule to compute exclusions and adjustments to other gains and
losses reported on your federal income tax return.
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.
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 excludible IRA distributions. The
Exclusions and Adjustments to IRA Distributions schedule is used to
document excluded IRA distributions.
The conversion of a traditional IRA to a ROTH IRA is taxable to a
resident (Form 1099-R, box 7, Distribution Code, G) unless the
Page 4 of 6
201
2016
6 HIGHLAND
HIGHLAND PARK
PARK FORM
FORM HP-1040
HP-1040 INSTRUCTIONS
INSTRUCTIONS FOR
FOR RESIDENTS,
RESIDENTS, NONRESIDENTS
NONRESIDENTS AND
AND PART-YEAR
PART-YEAR RESIDENTS
RESIDENTS
individual
Line
11
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at the
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Line
11 –
– Rental
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fromTrust,
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All
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is
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Line
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Line 10
10 –
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Taxable Pension
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on line
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line 10,
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and annuities
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line
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on
Schedule
Form
on Schedule E.
Form 1040
1040 or
or Form
Form 1040A.
1040A. Excluded
Excluded pension
pension and
and retirement
retirement benefits
benefits
Ordinance does not recognize Subchapter S status. Distributions from an S
are
are reported
reported on
on line
line 10,
10, column
column B
B and
and explained
explained on
on the
the Exclusions
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and
corporation
are taxable as
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Adjustments
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schedule.
Line 12
12 –
– Tax
Tax Option
Option Corporation
Corporation Distributions
Distributions (S
(S corporation)
corporation)
are
a shareholder
in a corporation
that hasfrom
elected
to fileoption
under corporation’s
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and
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from
the
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are
not
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a
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Pension and retirement benefits from the following are not taxable:
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corporation’s
of
the Internal received
Revenue
Code,
are Other
not
required
reportAccount
any
distributed
1.
Pension
plans
that
define
eligibility
for
retirement
and
set
contribution
Accumulated
Adjustments
Account,
Adjustments
1. Pension plans that define eligibility for retirement and set contribution
Accumulated Adjustments Account, Other Adjustments Account and/or
and/or
income
from Federal Undistributed
Schedule K-1 lines
1 through
11, nor
may deduct
your
and
the
Taxable
Income
Previously
Taxed
and benefit
benefit amounts
amounts in
in advance;
advance;
the Shareholder’s
Shareholder’s
Undistributed
Taxable
Income
Previously
Taxed
share
of
any
loss
or
other
deductions
distributed
by
the
corporation.
2.
Qualified
retirement
plans
for
the
self-employed;
Account
(federal
Form
1120S,
Schedule
M-2,
line
7)
are
income
2. Qualified retirement plans for the self-employed;
Account (federal Form 1120S, Schedule M-2, line 7) are income on
on a
a
Benefits
Highland
Park
return
and
are
Line
13 – Farm
Benefits from
from any
any of
of the
the previous
previous plans
plans received
received on
on account
account of
of
Highland
Park Income
return or
and(Loss)
are to
to be
be reported
reported on
on this
this line.
line. These
These
disability
or
as
a
surviving
spouse
if
the
decedent
qualified
for
the
distributions
are
found
on
federal
Schedule
K-1
(1120),
line
20.
Report
Profit
or loss from
operation
of a farm
is taxable
reported
on20.
the Report
federal
disability or as a surviving spouse if the decedent qualified for the
distributions
are the
found
on federal
Schedule
K-1as
(1120),
line
exclusion
these
the
Adjustments
for
exclusion at
at the
the time
time of
of death;
death;
these distributions
distributions
on
the the
Adjustments
for Subchapter
Subchapter
SnoCorporation
Corporation
return
regardless is on
where
farm is located.
There are S
exclusions.
3.
Distributions
from
a
401(k)
or
403(b)
plan
attributable
to
employer
Distributions
schedule.
Also
attach
copies
of
federal
Schedule
3. Distributions from a 401(k) or 403(b) plan attributable to employer
Distributions
schedule.
attach
copies F.
of federal Schedule K-1
K-1
Attach
a complete
copy Also
of federal
Schedule
(Form
1120S).
contributions
(Form
1120S).
contributions or
or attributable
attributable to
to employee
employee contributions
contributions to
to the
the extent
extent
Line 14 – Unemployment Compensation
they
result
in
matching
contributions
by
the
employer;
Line 13
13 –
– Farm
Farm Income
Income or
or (Loss)
(Loss)
they result in matching contributions by the employer;
Line
NOT
TAXABLE.
Exclude all.
No explanation needed.
4.
Profit or
or loss
loss from
from the
the operation
operation of
of a
a farm
farm is
is taxable
taxable as
as reported
reported on
on the
the
4. Benefits
Benefits paid
paid to
to an
an individual
individual from
from a
a retirement
retirement annuity
annuity policy
policy that
that
Profit
Line
15
–
Social
Security
Benefits
has
been
annuitized
and
paid
over
the
life
of
the
individual.
federal return
return regardless
regardless of
of where
where the
the farm
farm is
is located.
located. There
There are
are no
no
has been annuitized and paid over the life of the individual.
federal
NOT
TAXABLE.
Exclude
all.
No
explanation
needed.
exclusions. Attach
Attach a
a complete
complete copy
copy of
of federal
federal Schedule
Schedule F.
F.
Pension
exclusions.
Pension and
and retirement
retirement benefits
benefits from
from the
the following
following are
are taxable:
taxable:
Line
Income Compensation
1.
Line 16
14 ––
– Other
Unemployment
1. Premature
Premature pension
pension plan
plan distributions
distributions (those
(those received
received prior
prior to
to
Line
14
Unemployment
Compensation
qualifying
Other
income reported
on all.
the No
resident’s
federal
return is taxable except for
NOT TAXABLE.
TAXABLE.
Exclude
all.
No
explanation
needed.
qualifying for
for retirement);
retirement);
NOT
Exclude
explanation
needed.
2.
income
from
recoveries
related
to federal itemized deductions from prior tax
2. Amounts
Amounts received
received from
from deferred
deferred compensation
compensation plans
plans that
that let
let the
the
Line 15
15 –
– Social
Social Security
Security Benefits
Benefits
Line
employee
employee set
set the
the amount
amount to
to be
be put
put aside
aside and
and do
do not
not set
set retirement
retirement
years.
Include income
not previously
discussed.
This includes partnerships,
NOT TAXABLE.
TAXABLE.
Exclude
all. No
No explanation
explanation
needed.
NOT
Exclude
all.
needed.
age
age or
or requirements
requirements for
for years
years of
of service.
service. These
These plans
plans include,
include, but
but
estates,
Line 16
16 –
–trusts,
Otheralimony
Incomereceived, distributions from profit sharing plans,
Line
Other
Income
are
not
limited
to,
plans
under
IRC
Sections
401(k),
457
and
403(b):
are not limited to, plans under IRC Sections 401(k), 457 and 403(b):
premature
distributions
IRA’s
capital gains,
winnings
State Lottery,
Other income
income
reportedfrom
on the
the
resident’s
federal
return from
is taxable
taxable
except
Other
reported
on
resident’s
federal
return
is
except
Amounts
Amounts received
received before
before the
the recipient
recipient could
could retire
retire under
under the
the plan
plan
gambling
winnings
from casinos,
racetracks,
or itemized
non-charitable
lotteries
or
for income
income
from recoveries
recoveries
related
to federal
federal
itemized
deductions
from
for
from
related
to
deductions
from
provisions,
including
amounts
paid
on
separation,
withdrawal
or
provisions, including amounts paid on separation, withdrawal or
prior tax
tax
years.
Report
on this
this
line Report
a net
net operating
operating
loss
carryover
from
bingo
halls,
or
from
any
other
source.”
on
this
line
a
net
operating
loss
prior
years.
Report
on
line
a
loss
carryover
from
discontinuance
of
the
plan;
discontinuance of the plan;
the previous
previous
tax
year.
Report
exclusions
and
adjustments
on p.
p. 2,
2, using
using
carryover
fromtax
theyear.
previous
tax exclusions
year. Reportand
exclusions
and adjustments
on
the
Report
adjustments
on
Amounts
Amounts received
received as
as early
early retirement
retirement incentives,
incentives, unless
unless the
the
the2,Exclusions
Exclusions
and Adjustments
Adjustments
to Other
Other Income
Income
schedule.
the
and
to
incentives
p.
using the Exclusions
and Adjustments
to Other schedule.
Income schedule.”
incentives were
were paid
paid from
from a
a pension
pension trust;
trust;
Line 17
17 –—
—Total
Total
Additions
3.
17
Total
Additions
Line
Additions
3. Benefits
Benefits paid
paid from
from a
a retirement
retirement annuity
annuity policy
policy other
other than
than annuitized
annuitized
benefits
lines 22
2 through
through16
16.ofof
of
each
column
and
enter
amounts
on line
line
17.
benefits paid
paid over
over the
the life
life of
of the
the individual
individual are
are taxable
taxable to
to the
the same
same
Add lines
each
column
and
enter
amounts
on line
17. 17.
lines
through
16.
each
column
and
enter
amounts
on
extent
extent taxable
taxable under
under the
the Internal
Internal Revenue
Revenue Code.
Code.
18 ––
–Total
TotalIncome
Income
Line
Line 18
18
Total
Income
Report
Add lines
lines 11
1 through
through16
16ofof
ofeach
eachcolumn
column
and
enter
amounts
on
line
18.
Report taxable
taxable pension
pension and
and retirement
retirement income
income on
on line
line 10,
10, column
column C.
C.
Add
and
enter
amounts
on on
lineline
18.18.
lines
through
16
each
column
and
enter
amounts
Line 11 – Rental Real Estate, Royalties, S Corporations, Partnerships,
19 ––
– Deductions
Deductions
Line
19
Line
19
Deductions
Royalties, Estates, Trust, etc.
Enter amount
amountfrom
fromDeductions
Deductionsschedule,
schedule,
page
2,
line
7.
Enter
page
2, 2,
line
7. 7.
amount
from
Deductions
schedule,
page
line
All Income reported on Schedule E is taxable except for tax option corporation
NONRESIDENT
INSTRUCTIONS
NONRESIDENT INSTRUCTIONS
NONRESIDENT INCOME
INCOME SUBJECT
SUBJECT TO
TO TAX:
TAX:
NONRESIDENT
1. Compensation
Compensation for
for work
work done
done or
or services
services performed
performed in
in Highland
Highland Park,
Park,
1.
which
which includes,
includes, but
but is
is not
not limited
limited to,
to, the
the following:
following: salaries,
salaries, wages,
wages,
bonuses,
bonuses, commissions,
commissions, fees,
fees, tips,
tips, incentive
incentive payments,
payments, severance
severance
pay,
pay, vacation
vacation pay
pay and
and sick
sick pay.
pay.
2.
2. Net
Net profits
profits from
from the
the operation
operation of
of an
an unincorporated
unincorporated business,
business,
profession
profession or
or other
other activity
activity attributable
attributable to
to business
business activity
activity conducted
conducted
in
in Highland
Highland Park,
Park, whether
whether or
or not
not such
such business
business is
is located
located in
in
Highland
Highland Park.
Park. This
This includes
includes business
business interest
interest income
income from
from business
business
activity
activity in
in Highland
Highland Park.
Park.
3.
3. Gains
Gains or
or losses
losses from
from the
the sale
sale or
or exchange
exchange of
of real
real or
or tangible
tangible
personal
personal property
property located
located in
in Highland
Highland Park.
Park.
4
4 Net
Net profits
profits from
from the
the rental
rental of
of real
real or
or tangible
tangible personal
personal property
property
located
located in
in Highland
Highland Park.
Park.
5.
5. Premature
Premature distributions
distributions from
from an
an Individual
Individual Retirement
Retirement Account
Account (IRA)
(IRA)
where
where a
a deduction
deduction was
was claimed
claimed on
on a
a current
current or
or previous
previous year’s
year’s
Highland
Highland Park
Park income
income tax
tax return.
return.
6.
6. Premature
Premature distributions
distributions from
from a
a pension
pension plan
plan attributable
attributable to
to work
work
performed
performed in
in Highland
Highland Park.
Park.
7.
7. Deferred
Deferred compensation
compensation earned
earned in
in Highland
Highland Park.
Park.
Line
Line 1
1–
– Wages,
Wages, Salaries,
Salaries, Tips,
Tips, Etc.
Etc.
All
All wages
wages of
of a
a nonresident
nonresident are
are to
to be
be reported
reported on
on the
the Wages,
Wages, Excludible
Excludible
Wages
Wages and
and City
City Tax
Tax Withheld
Withheld schedule.
schedule. The
The total
total wages
wages from
from line
line 15
15 of
of
this
this schedule
schedule is
is the
the amount
amount reported
reported on
on Form
Form HP-1040,
HP-1040, page
page 1,
1, line
line 1,
1,
column
column A.
A. The
The total
total wages
wages should
should be
be the
the same
same as
as the
the wages
wages reported
reported
on
on your
your federal
federal tax
tax return
return (Form
(Form 1040,
1040, Form
Form 1040A
1040A or
or Form
Form 1040EZ).
1040EZ).
All W-2
W-2 forms
forms showing
showing income
income earned
earned in
in Highland
Highland Park
Park and/or
and/or tax
tax
All
withheld
withheld for
for Highland
Highland Park
Park must
must be
be attached
attached to
to the
the return.
return.
Report
Report on
on page
page 1,
1, line
line 1,
1, column
column B,
B, the
the total
total excluded
excluded wages
wages from
from Line
Line
16
16 of
of the
the Wages,
Wages, Excludible
Excludible Wages
Wages and
and City
City Tax
Tax Withheld
Withheld schedule.
schedule. All
All
excluded
wages
must
be
documented
on
the
Wages,
Excludible
Wages
excluded wages must be documented on the Wages, Excludible Wages
and
City
Tax
Withheld
schedule
and
listed,
by
employer,
on
the
and City Tax Withheld schedule and listed, by employer, on the
Excluded
Excluded Wages
Wages schedule
schedule on
on Form
Form HP-1040,
HP-1040, page
page 2.
2. On
On the
the Wages,
Wages,
Excludible
Excludible Wages
Wages and
and City
City Tax
Tax Withheld
Withheld schedule,
schedule, lines
lines 13
13 and
and 14,
14,
enter
the
reason
the
wages
are
excludible
and
the
address
of
the
enter the reason the wages are excludible and the address of the work
work
station
where
you
performed
the
work
for
the
employer.
station where you performed the work for the employer.
Do
Do not
not use
use box
box 18
18 of
of W-2
W-2 form
form to
to report
report taxable
taxable wages
wages or
or to
to
allocate
allocate wages,
wages, use
use all
all wages
wages reported
reported on
on your
your federal
federal return
return as
as
the
the allocation
allocation basis.
basis. A
A separate
separate wage
wage allocation
allocation must
must be
be completed
completed
for
for each
each employer.
employer. Wages
Wages are
are normally
normally allocated
allocated using
using the
the actual
actual
number
number of
of days
days or
or hours
hours worked
worked in
in and
and outside
outside of
of Highland
Highland Park
Park during
during
the
tax
year
for
an
employer.
Vacation
time,
sick
time
and
holidays
the tax year for an employer. Vacation time, sick time and holidays are
are
not
not included
included in
in total
total days
days worked
worked in
in arriving
arriving at
at the
the wage
wage allocation
allocation
percentage.
Vacation
pay,
holiday
pay,
sick
pay,
bonuses,
severance
percentage. Vacation pay, holiday pay, sick pay, bonuses, severance
pay, etc.
etc. are
are taxable
taxable to
to same
same extent
extent as
as normal
normal earnings.
earnings.
pay,
100%
Earned
in
Highland
Park.
All
wages,
salaries, tips,
tips, sick
sick pay,
pay,
100% Earned in Highland Park. All wages, salaries,
bonuses, deferred
deferred compensation,
compensation, severance
severance pay,
pay, and
and other
other
bonuses,
compensation (Form
(Form W-2,
W-2, boxes
boxes 1
1 and
and 8)
8) is
is taxable
taxable to
to nonresidents
nonresidents
compensation
who worked
worked 100%
100% of
of the
the time
time in
in Highland
Highland Park.
Park.
who
Wage Allocation.
Allocation. Nonresidents
Nonresidents who
who performed
performed only
only part
part of
of their
their
Wage
services for
for an
an employer
employer in
in the
the Highland
Highland Park
Park must
must allocate
allocate their
their
services
wages. Use
Use the
the Nonresident
Nonresident and
and Part-Year
Part-Year Resident
Resident Wage
Wage Allocation
Allocation
wages.
section of
of the
the Wages,
Wages, Excludible
Excludible Wages
Wages and
and City
City Tax
Tax Withheld
Withheld
section
schedule.
schedule.
Wage Allocations
Allocations on
on Commissions,
Commissions, Etc.
Etc. A
A nonresident
nonresident salesperson
salesperson
Wage
paid on
on a
a commission
commission basis
basis or
or other
other results
results achieved
achieved should
should allocate
allocate
paid
wages based
based on
on commissions
commissions received
received or
or other
other results
results achieved
achieved
wages
attributable to
to efforts
efforts expended
expended in
in Highland
Highland Park.
Park. A
A nonresident
nonresident
attributable
insurance salesperson
salesperson paid
paid sales
sales commissions
commissions and
and renewal
renewal
insurance
commissions should
should allocate
allocate compensation
compensation on
on the
the following
following basis:
basis:
commissions
Allocate commissions
commissions from
from life,
life, health,
health, accident
accident and
and vehicle
vehicle (auto)
(auto)
Allocate
insurance based
based on
on the
the location
location (residence)
(residence) of
of the
the purchaser.
purchaser. Allocate
Allocate
insurance
commissions from
from group
group insurance
insurance based
based on
on the
the location
location of
of the
the group.
group.
commissions
Allocate commissions
commissions from
from fire
fire and
and casualty
casualty insurance
insurance based
based on
on the
the
Allocate
location of
of the
the risk
risk insured.
insured.
location
Line 2
2–
– Interest
Interest
Line
Non-business interest
interest income
income of
of a
a nonresident
nonresident is
is not
not taxable.
taxable. Exclude
Exclude
Non-business
all non-business
non-business interest
interest income.
income. No
No explanation
explanation needed.
needed.
all
Interest income
income that
that is
is business
business income
income from
from business
business activity
activity in
in
Interest
Highland Park
Park is
is taxable
taxable and
and must
must be
be reported.
reported. Attach
Attach a
a schedule
schedule
Highland
showing source
source and
and computation
computation of
of taxable
taxable and
and nontaxable
nontaxable interest
interest
showing
income.
income.
Line 3
3–
– Dividends
Dividends
Line
NOT TAXABLE.
TAXABLE. Exclude
Exclude all
all dividend
dividend income.
income. No
No explanation
explanation needed.
needed.
NOT
Line 4
4–
– Taxable
Taxable Refunds,
Refunds, Credits
Credits or
or Offsets
Offsets
Line
NOT TAXABLE.
TAXABLE. Exclude
Exclude all.
all. No
No explanation
explanation needed.
needed.
NOT
Line 5
5–
– Alimony
Alimony Received
Received
Line
NOT TAXABLE.
TAXABLE. Exclude
Exclude all.
all. No
No explanation
explanation needed.
needed.
NOT
Page
Page 55 of
of 66
2016 HIGHLAND PARK FORM HP-1040 INSTRUCTIONS FOR RESIDENTS, NONRESIDENTS AND PART-YEAR RESIDENTS
2016 HIGHLAND PARK FORM HP-1040 INSTRUCTIONS FOR RESIDENTS, NONRESIDENTS AND PART-YEAR RESIDENTS
Line 6 – Profit or (Loss) from a Business, Etc.
Profit
from
the operation
a businessEtc.
or profession is taxable to
Line 6or– loss
Profit
or (Loss)
from aofBusiness,
the
results
from work
services
rendered
or other
Profitextent
or lossitfrom
the operation
of adone,
business
or profession
is taxable
to
business
conducted
in Highland
Report
on page
line
the extentactivities
it results
from work
done, Park.
services
rendered
or 1,other
6,
column
A,
business
income
reported
taxable
on
your
federal
return.
business activities conducted in Highland Park. Report on page 1, line
The
Exclusions
and Adjustments
to Business
is used
6,
column
A, business
income reported
taxableIncome
on yourschedule
federal return.
to exclude
business
income. The to
total
excluded
business
income
from
The
Exclusions
and Adjustments
Business
Income
schedule
is used
lineexclude
5 of this
schedule
is also The
entered
page 1,business
line 6, column
If a
to
business
income.
total on
excluded
incomeB.from
business
operates
bothis in
and
outside
Highland
the taxable
line
5 of this
schedule
also
entered
onofpage
1, linePark,
6, column
B. If a
profit or loss
is determined
using
the three
factor Business
Allocation
business
operates
both in and
outside
of Highland
Park, the
taxable
formula.
profit or loss is determined using the three factor Business Allocation
Where no work is done, services rendered or other business activity is
formula.
conducted
in Highland
therendered
profit ororloss
is business
entirely excluded.
Where
no work
is done, Park,
services
other
activity is
Complete the
Exclusions
Income
conducted
in Highland
Park,and
the Adjustments
profit or losstois Business
entirely excluded.
schedule to the
exclude
profit or loss
the operation
a business.
Complete
Exclusions
and from
Adjustments
to ofBusiness
Income
A Highland
net profit
operating
loss
carryover
from the
tax year
schedule
to Park
exclude
or loss
from
the operation
of previous
a business.
is
reported on
page
line 16, column
C. See from
instructions
for linetax
16.year
A Highland
Park
net1,operating
loss carryover
the previous
Line
7 – Capital
Gains
or 16,
(Losses)
is
reported
on page
1, line
column C. See instructions for line 16.
Capital
or losses
nonresident are included in taxable income
Line
7 –gains
Capital
Gains of
or a(Losses)
to the extent
gains of
or alosses
are from
in Highland
Capital
gains the
or losses
nonresident
areproperty
includedlocated
in taxable
income
Park.
losses
from
located
Highland
Park are
allowed
to
the Capital
extent the
gains
or property
losses are
from in
property
located
in Highland
to the Capital
same extent
allowed
underinthe
InternalPark
Revenue
Code.
Park.
lossesthey
fromare
property
located
Highland
are allowed
Unused
capital
losses
be carried
over
future Revenue
tax years.Code.
The
to
the same
extent
theymay
are allowed
under
thetoInternal
capital loss
carryover
Park
may
different
than The
the
Unused
capital
losses for
mayHighland
be carried
over
to be
future
tax years.
carryover
for federal
income
tax purposes.
capital
loss
carryover
for Highland
Park may be different than the
Deferred for
capital
gain
income
from installment sales and like-kind
carryover
federal
income
tax purposes.
exchange
of property
Highland
Park aresales
taxable
in the
year
Deferred capital
gainlocated
incomein from
installment
and
like-kind
recognized
the taxpayer’s
incomePark
tax return.
exchange ofonproperty
locatedfederal
in Highland
are taxable in the year
Flow through
income
or loss
from
a tax
option corporation (S
recognized
on the
taxpayer’s
federal
income
tax return.
corporation,
reported
federal corporation
Schedule D (S
is
Flow
throughetc.)
income
or on
lossa nonresident’s
from a tax option
excluded onetc.)
the reported
Exclusions
Adjustmentsfederal
to Capital
GainsD or
corporation,
on and
a nonresident’s
Schedule
is
(Losses) schedule
Attach copies
of federal Schedule
(Form
excluded
on the Exclusions
and Adjustments
to CapitalK-1
Gains
or
1120S). schedule Attach copies of federal Schedule K-1 (Form
(Losses)
Use the Exclusions and Adjustments to Capital Gains or (Losses)
1120S).
schedule
to computeand
exclusions
and to
adjustments
to capital
gains.
Use the Exclusions
Adjustments
Capital Gains
or (Losses)
NOTE:
errorexclusions
on a nonresident
return is failure
to complete
scheduleA common
to compute
and adjustments
to capital
gains.
the
Exclusions
anderror
Adjustments
schedule return
to exclude
the to
capital
loss
NOTE:
A common
on a nonresident
is failure
complete
carryover
reported
the taxpayer’s
federal income
tax return.
the
Exclusions
andonAdjustments
schedule
to exclude
the capital loss
Line 8 – Other
Gains
or (Losses)
carryover
reported
on the
taxpayer’s federal income tax return.
A
nonresident’s
other or
gains
and losses are included in taxable income
Line
8 – Other Gains
(Losses)
to
the extent theother
gainsgains
or losses
are from
in Highland
A nonresident’s
and losses
areproperty
includedlocated
in taxable
income
Park.
gains
and losses
from
installment
sales
and liketo the Deferred
extent theother
gains
or losses
are from
property
located
in Highland
kind
exchanges
of
property
located
in
Highland
Park
are
taxable
the
Park. Deferred other gains and losses from installment sales andinlikeyear
recognized of
onproperty
the taxpayer’s
income
taxare
return.
Deferred
kind exchanges
located federal
in Highland
Park
taxable
in the
other
gains must on
be supported
by attaching
a copy of
federal
6252
year recognized
the taxpayer’s
federal income
tax
return.Form
Deferred
and/or
Formmust
8824.
other gains
be supported by attaching a copy of federal Form 6252
Flow through
income from a tax option corporation (S corporation)
and/or
Form 8824.
Schedule
B is excluded
reported
on federal
on the
Flow
through
incomeForm
from 4797
a taxoroption
corporation
(S corporation)
Exclusionsonand
Adjustments
to Other
Gains and
schedule.
or Schedule
B is(Losses)
reported
federal
Form 4797
excluded
on the
Attach copies
federal Schedule
K-1 Gains
(Form and
1120S).
Exclusions
andofAdjustments
to Other
(Losses) schedule.
Nonresidents
other
gains and
must attach a copy of
Attach
copiesreporting
of federal
Schedule
K-1 losses
(Form 1120S).
federal Formreporting
4797. Use
thegains
Exclusions
andmust
Adjustments
Other
Nonresidents
other
and losses
attach a to
copy
of
Gains
Losses
schedule
to compute
exclusions
and adjustments
to
federaland
Form
4797.
Use the
Exclusions
and Adjustments
to Other
other
gains
and
losses
reported
on
the
federal
income
tax
return.
On
Gains and Losses schedule to compute exclusions and adjustments to
line
of the and
schedule
enter
the total
other
gainstax
or losses
other4 gains
losses
reported
on excluded
the federal
income
return. and
On
also
this
total on enter
page the
1, line
8, excluded
column B.other gains or losses and
line 4enter
of the
schedule
total
Line
9
–
IRA
Distributions
also enter this total on page 1, line 8, column B.
That
of a premature IRA distribution that was deducted from
Line 9portion
– IRA Distributions
Highland
Park’s
income
the current
a deducted
prior tax from
year
That portion
of ataxable
premature
IRA in
distribution
that or
was
(reported
Formtaxable
1099-R,income
box 7, in
distribution
codeor1)aare
taxable
to a
Highland on
Park’s
the current
prior
tax year
nonresident.
received
after age
59 1)
½ are
or described
(reported on IRA
Formdistributions
1099-R, box
7, distribution
code
taxable toby
a
Section 72(t)(2)(A)(iv)
of the IRC
are not after
taxable.
nonresident.
IRA distributions
received
age 59 ½ or described by
Line 10 72(t)(2)(A)(iv)
– Taxable Pension
Distributions
Section
of the IRC
are not taxable.
Premature
pensionPension
plan distributions
(those received by a nonresident
Line 10 – Taxable
Distributions
prior
to qualifying
retirement)
are(those
taxable
to the by
same
extent the
Premature
pensionfor
plan
distributions
received
a nonresident
normal
from for
the retirement)
employer are
prior towages
qualifying
aretaxable.
taxable to the same extent the
A nonresident
remaining
employed
by the particular employer in
normal
wages from
the employer
are taxable.
Highland
Park remaining
may not exclude
deferred
A
nonresident
employedamounts
by the received
particularfrom
employer
in
compensation
the employee
the amount
be put
Highland
Parkplans
may that
not let
exclude
amountssetreceived
from todeferred
aside and do plans
not set
age or requirements
for toyears
of
compensation
thatretirement
let the employee
set the amount
be put
service.and
These
plans
butage
are ornotrequirements
limited to, for
plans
under
aside
do not
set include,
retirement
years
of
Sections These
401(k), plans
457 and
403(b)but
of the
Revenue
Code (IRC):
service.
include,
are Internal
not limited
to, plans
under
Amounts 401(k),
received
the recipient
could retire
under
the(IRC):
plan
Sections
457before
and 403(b)
of the Internal
Revenue
Code
provisions,received
including
amounts
paid oncould
separation,
withdrawal
or
Amounts
before
the recipient
retire under
the plan
discontinuance
of the amounts
plan. Amounts
as early
retirement
provisions,
including
paid onreceived
separation,
withdrawal
or
incentives, unless
were paid
from aaspension
trust. See
discontinuance
of the
the incentives
plan. Amounts
received
early retirement
Line 10 under
“Residents”
for additional
on nontaxable
incentives,
unless
the incentives
were paid information
from a pension
trust. See
pension
retirement
benefits.
Line
10 and
under
“Residents”
for additional information on nontaxable
pension and retirement benefits.
Excludible pension distributions are listed on the Exclusions and
Adjustments
to Pension
Income are
schedule.
theExclusions
total excluded
Excludible pension
distributions
listed Enter
on the
and
pension
distributions
on the
last line
of the schedule
and total
also enter
the
Adjustments
to Pension
Income
schedule.
Enter the
excluded
amount
on
page
1,
line
10,
column
B.
pension distributions on the last line of the schedule and also enter the
state
, Royalties,
Partnerships, S Corporations,
Line 11 on
– Rental
amount
page 1,Real
line E10,
column
B.
Estates,
Rental Etc.
Real Estate, Royalties, Partnerships, S Corporations,
Line 11 –Trusts,
All income
reported
Estates,
Trusts,
Etc. on the federal Schedule E that comes from
business
activity
in Highland
or property
located
in Highland
All
income
reported
on thePark
federal
Schedule
E that
comes Park
from
is taxableactivity
to nonresidents.
When
or located
trust hasintaxable
income
business
in Highland
Parkan
or estate
property
Highland
Park
in taxable
Highlandto Park,
the estate
or trust
must file
a return
pay income
tax on
is
nonresidents.
When
an estate
or trust
has and
taxable
distributions
to nonresidents
on undistributed
taxableand
income.
in Highland Park,
the estateand
or trust
must file a return
pay tax on
The following
reported
federal Schedule
E income.
is excludable:
distributions
to income
nonresidents
and on undistributed
taxable
income
from business
activity oronproperty
Highland
Park; tax
The
following
income reported
federal outside
Schedule
E is excludable:
option corporation
(S corporation,
etc.) flow
through
incomePark;
or loss
income
from business
activity or property
outside
Highland
tax
reportedcorporation
on Schedule
and incomeetc.)
from flow
estates
and trusts.
option
(SE;corporation,
through
income or loss
Explain all
theincome
Exclusions
and Adjustments
reported
on exclusions
Schedule E;onand
from estates
and trusts. to Income
from
Rental
Real Estate,
Royalties,
Partnerships,
S Corporations,
Explain
all exclusions
on the
Exclusions
and Adjustments
to Income
Trusts,
Etc. schedule.
On Royalties,
line 6 of Partnerships,
this schedule Senter
the total
from Rental
Real Estate,
Corporations,
exclusions
and
adjustments;
enter
also
on
page
1,
line
11,
column
Trusts, Etc. schedule. On line 6 of this schedule enter the C.total
Line
12
youadjustments;
are a shareholder
in a corporation
thatare
hastaxable
electedC.
file
12 ––Ifand
Subchapter
S Corporation
Distributions
exclusions
enter also
on
page 1, line
11,
column
iftothe
business
located
in the
Highland
Park.
Losses
on you
an are
S-Corp
be
under
Subchapter
S of
Revenue
Code,
are taxable
not cannot
required
to
Line
12
–is Subchapter
S Internal
Corporation
Distributions
if the
transferred
tolocated
HP-1040.
report
anyisdistributed
income
nor may
deductonyour
of cannot
any lossbe
or
business
in
Highland
Park.you
Losses
an share
S-Corp
transferred
to HP-1040.
Line 13
– Farm
Income
orby
(Loss)
other
deductions
distributed
the corporation.”
A
nonresident’s
profit or or
loss
from a farm are included in Highland Park
Line
13 – Farm Income
(Loss)
income
to the extent
profitfrom
or loss
results
from work
services
A nonresident’s
profit the
or loss
a farm
are included
in done,
Highland
Park
rendered
other
activities
conducted
in Highland
The portion
of
income toorthe
extent
the profit
or loss results
from Park.
work done,
services
the
profit
or
loss
reported
on
Highland
Park
return
is
determined
by
rendered or other activities conducted in Highland Park. The portionuse
of
of
three
factorreported
Farm Allocation
Percentage
formula.
Where no
thethe
profit
or loss
on Highland
Park return
is determined
bywork
use
is
done,
services
rendered
or
other
business
activity
is
conducted
in
of the three factor Farm Allocation Percentage formula. Where no work
Highland
Park, therendered
entire farm
profitbusiness
or loss activity
is excluded,
using the
is done, services
or other
is conducted
in
Exclusions
and Adjustments
to Farm
Income
schedule.
Highland Park,
the entire farm
profit
or loss
is excluded, using the
Sales of crops
the produce
any ofschedule.
the farmer’s markets or a
Exclusions
and at
Adjustments
to market,
Farm Income
produce
in the city
is Highland
businessmarkets
activity or
and
Sales
of stand
crops located
at the produce
market,
any of Park
the farmer’s
a
subjects stand
the farm
to Highland
Parkisincome
tax.Park business activity and
produce
located
in the city
Highland
Line 14 –the
Unemployment
Compensation
subjects
farm to Highland
Park income tax.
NOT 14
TAXABLE.
Exclude all.
No explanation needed.
Line
– Unemployment
Compensation
Line 15
– SocialExclude
Securityall.
Benefits
NOT
TAXABLE.
No explanation needed.
NOT
TAXABLE.
No explanation needed.
Line 15
– SocialExclude
Securityall.
Benefits
Line 16
– Other Exclude
Income all. No explanation needed.
NOT
TAXABLE.
Other16
income
is Income
taxable if it is from work performed or other activities
Line
– Other
conducted
in Highland
Exclusions
and
to
Other
income
is taxablePark.
if it isUse
fromthe
work
performed
or Adjustments
other activities
Other Income
schedulePark.
to document
exclusionsand
andAdjustments
adjustments.
conducted
in Highland
Use the Exclusions
to
Report Income
on this line
a Highland
Park-related
net operating
carryover
Other
schedule
to document
exclusions
and loss
adjustments.
from theon
previous
year.
Report
this linetax
a Highland
Park-related net operating loss carryover
Line the
17 –previous
Total Additions
from
tax year.
Add
through
16 of each column and enter amounts on line 17.
Linelines
17 – 2Total
Additions
Add
through
16 of each column and enter amounts on line 17.
Linelines
18 – 2Total
Income
Add lines
through
16 of each column and enter amounts on line 18.
Line
18 – 1Total
Income
Linelines
19 – 1Total
Deductions
Add
through
16 of each column and enter amounts on line 18.
Enter
amount
from
Deductions schedule, page 2, line 7. A nonresident’s
Line 19
– Total
Deductions
deductions
arefrom
limited
by the extent
they relate
to line
income
under
Enter amount
Deductions
schedule,
page 2,
7. A taxable
nonresident’s
the
Highland
Income
Tax
Ordinance.
Nonresidents
must allocate
deductions
arePark
limited
by the
extent
they relate
to income taxable
under
deductions
thePark
same
way related
income isNonresidents
allocated. See
Deductions
the
Highland
Income
Tax Ordinance.
must
allocate
schedule (page
2 instructions)
for aincome
list of allowable
deductions.
deductions
the same
way related
is allocated.
See Deductions
schedule (page 2 instructions) for a list of allowable deductions.
Notice
These instructions are an interpretation of the Highland Park Income
Tax Ordinance. If any discrepancy exists between the instructions and
the Ordinance, the Ordinance prevails.
Page 6 of 6
Page 6 of 6
HP-1040
2016
HIGHLAND PARK
INDIVIDUAL RETURN DUE APRIL 30, 2017
Taxpayer's first name
Taxpayer's SSN
Initial
12MI-HPK1
Last name
RESIDENCE STATUS
Resident
Spouse's SSN
If joint return spouse's first name
Initial
Last name
Nonresident
Part-year
resident
Part-year resident - dates of residency (mm/dd/yyyy)
From
Make sure the SSN(s) above and on
page 2, line 1d are correct.
Present home address (Number and street)
Apt. no.
To
FILING STATUS
Address line 2 (P.O. Box address for mailing use only)
Check box if you need a tax
form mailed to you next year.
For city use only
Single
City, town or post office
Foreign country name
State
Married filing separately. Enter spouse's SSN
in Spouse's SSN box and Spouse's full name
here.
Zip code
Foreign province/county
Married filing jointly
Foreign postal code
Spouse's full name if married filing separately
INCOME
1.
ATTACH
2.
COPY OF
PAGE 1 OF 3.
FEDERAL
4.
RETURN
5.
ROUND ALL FIGURES TO NEAREST DOLLAR
($0.50 next dollar)
Wages, salaries, tips, etc. ( W-2 forms must be attached)
1
Taxable interest
2
Ordinary dividends
3
Taxable refunds, credits or offsets
4
Alimony received
5
6.
Business income or (loss) (Attach federal Schedule C)
6
7.
Capital gain or (loss)
(Attach copy of fed. Sch. D)
8.
Other gains or (losses) (Attach copy of federal Form 4797)
9.
Taxable IRA distributions
7a.
Mark if federal
Sch. D not required
7
8
9
10. Taxable pensions and annuities (Attach copy of Form(s) 1099-R)
11
12. Subchapter S corporation distributions (Attach federal Sch. K-1)
12
Column B
Exclusions/Adjustments
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
NOT APPLICABLE
.00
.00
.00
.00
.00
.00
13
14. Unemployment compensation
14
15. Social security benefits
15
16. Other income (Attach statement listing type and amount)
16
17.
Total additions (Add lines 2 through 16)
17
18.
Total income (Add lines 1 through 16)
18
19.
Total deductions (Subtractions) (Total from page 2, Deductions schedule, line 7)
19
20.
Total income after deductions (Subtract line 19 from line 18)
20
22.
(Enter the total exemptions, from Form HP-1040, page 2, box 1h, in line 21a and multiply this
number by $600 and enter on line 21b)
24.
21a
21b
Total income subject to tax (Subtract line 21b from line 20)
22
(Multiply line 22 by Highland Park resident tax rate of 2% (0.02) or nonresident tax rate of 1%
(0.01) and enter tax on line 23b, or if using Schedule TC to compute tax, check box 23a and enter
tax from Schedule TC, line 23d)
23. Tax
23a
Interest
Penalty
.00
25a
.00
25b
Total
interest &
penalty
.00
.00
.00
NOT TAXABLE
.00
.00
NOT TAXABLE
NOT TAXABLE
.00
.00
.00
.00
.00
.00
.00
24
.00
.00
25c
.00
23b
Total payments and credits (Total from page 2, Payments and Credits schedule, line 4)
Interest and penalty for: failure to make
25. estimated tax payments; underpayment
of estimated tax; or late payment of tax
Column C
Taxable Income
.00
.00
.00
.00
.00
.00
13. Farm income or (loss) (Attach federal Schedule F)
21. Exemptions
ENCLOSE
CHECK OR
MONEY
ORDER
10
Rental real estate, royalties, partnerships, S corporations, trusts,
etc. (Attach federal Schedule E)
11.
ATTACH
W-2
FORMS
HERE
Column A
Federal Return Data
PAY WITH
TAX DUE
26.
Amount you owe (Add lines 23b and 25c, and subtract line 24)
MAKE CHECK OR MONEY ORDER PAYABLE TO: CITY OF HIGHLAND PARK
OVERPAYMENT
28. Reserved
>>>>>
26
27. Tax overpayment (Subtract lines 23b and 25c from line 24; choose overpayment options on lines 28 - 30)
27
28a
28b
28c
29. Amount of overpayment credited forward to 2017
30. Amount of overpayment refunded (Line 27 less line 29)
31. Reserved
RETURN
31a
Not available
31c Reserved
31b
Not available
31d Reserved
Total
donations
.00
.00
28d
Amount of credit to 2017 >> 29
.00
Refund amount >> 30
.00
31e Reserved
MAIL TO: Highland Park Income Tax Dept, P.O. Box 239, Eaton Rapids, MI 48827-0239
Revised: 12/01/2016
Taxpayer's name
Taxpayer's SSN
12MI-HPK2
HP-1040, PAGE 2
EXEMPTIONS
SCHEDULE
Regular
Date of birth (mm/dd/yyyy)
65 or over
Blind
Deaf
Disabled
1e. Enter the number of
boxes checked on lines
1a and 1b
1a. You
1b. Spouse
1d.
List Dependents 1c.
Check box if you can be claimed as a dependent on another person's tax return
First Name
#
Last Name
Relationship
Social Security Number
1f.
Date of Birth
Enter number of
dependent children listed
on line 1d
1
2
`
1g. Enter number of other
dependents listed on
line 1d
3
4
5
1h. Total exemptions (Add
lines 1e, 1f and 1g; enter
here and also on page 1,
line 21a)
6
7
8
EXCLUDED WAGES SCHEDULE (See instructions. Resident wages generally not excludible)
COLUMN A
W-2
#
EMPLOYER'S ID
COLUMN B
RESIDENT EXCLUDED
WAGES
COLUMN C
NONRESIDENT EXCLUDED
WAGES
W-2
#
COLUMN A
EMPLOYER'S ID
COLUMN B
RESIDENT EXCLUDED
WAGES
6
.00
.00
7
.00
.00
3
8
.00
.00
4
9
.00
.00
5
.00
.00 10
DEDUCTIONS SCHEDULE (See instructions; deductions allocated on same basis as related income)
COLUMN C
NONRESIDENT EXCLUDED
WAGES
.00
.00
.00
.00
.00
1
2
DEDUCTIONS
1.
IRA deduction (Attach copy of page 1 of federal return & evidence of payment)
1
2.
Self-employed SEP, SIMPLE and qualified plans (Attach copy of page 1 of federal return)
2
3.
Employee business expenses (See instructions and attach copy of federal Form 2106)
3
4.
Moving expenses (Into Highland Park area only) (Attach copy of federal Form 3903)
4
5.
Alimony paid (DO NOT INCLUDE CHILD SUPPORT. Attach copy of page 1 of federal return)
5
6.
Renaissance Zone deduction (Attach Schedule RZ OF 1040)
6
7.
.00
.00
.00
.00
.00
Total deductions (Add line 1 through line 6, enter total here and on page 1, line 19)
.00
.00
.00
.00
.00
.00
.00
7
PAYMENTS AND CREDITS SCHEDULE
1.
Tax withheld by your employer for HIGHLAND PARK (Attach W-2 Forms showing tax withheld for HIGHLAND PARK, Form W-2, box 19)
1
2.
Tax payments other than tax withheld (Estimated income tax payments, extension payment, partnership payments and credit forward)
2
3.
Credit for tax paid to another city (Residents attach a copy of other city's return; not allowed for nonresidents)
3
4.
Total payments and credits (Add lines 1 through 3, enter total here and on page 1, line 24)
.00
.00
.00
.00
4
ADDRESS SCHEDULE (Where taxpayer (T), spouse (S) or both (B) resided during year and dates of residency)
MARK
T, S, B
FROM
ADDRESS (INCLUDE CITY, STATE & ZIP CODE) Start with address used on last year's return. If the address is the same as
listed on page 1 of this return, print "Same." If no return filed, list reason. Continue listing residence addresses from this year.
MONTH
DAY
TO
MONTH
DAY
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)
Under the penalty of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief it is
true, correct and complete. If prepared by a person other than taxpayer, the preparer's declaration is based on all information of which preparer has any knowledge.
SIGN TAXPAYER'S SIGNATURE - If joint return, both spouses must sign
HERE
===>
PREPARER'S
SIGNATURE
SPOUSE'S SIGNATURE
SIGNATURE OF PREPARER OTHER THAN TAXPAYER
Date (MM/DD/YY)
Taxpayer's occupation
Date (MM/DD/YY)
Spouse's occupation
Daytime phone number
If deceased, date of death
If deceased, date of death
Date (MM/DD/YY)
PTIN, EIN or SSN
Preparer's phone no.
FIRM'S NAME (or yours if self-employed), ADDRESS AND ZIP CODE
NACTP
software
number
Revised: 12/01/2016