Departments
Finance - Income Tax Frequently Asked Question
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What is the tax rate for City of Pontiac Income Tax?
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When is my City of Pontiac Income Tax annual return due?
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What are the penalty and interest charges if I pay my income tax late?
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What are the requirements for remitting Individual and Corporate estimated payments.
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What are the requirements for remitting monthly or quarterly withholding tax payments?
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Who must file a Corporate Income Tax Return (P-1120)?
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Who must file a Partnership Income Tax Return (P-1065)?
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How long must I wait for a tax refund?
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Can I electronically file my City of Pontiac return?
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Will the City of
What is the tax rate for City of
The individual tax rate is 1% (.01) for residents and ½% (.005) for nonresidents. The corporation tax rate is 1% (.01).
When is my City of
City of
What are the penalty and interest charges if I pay my income tax late?
If you file and pay late, penalty is calculated at a rate of 1% per month with a maximum of 25% of the tax due. Interest is due at the annual rate of ½% above the current prime rate. The current interest rate on income tax delinquencies is established by the State of
Requests for an extension must be made in writing to the City of
A resident taxable income includes:
Salaries, bonuses, wages, commissions, fees, vacation pay, profit sharing plan income and other compensation regardless of where income was earned.
Deferred compensation distributions.
Lottery winnings.
Fair market value of merchandise or services received as compensation.
Net profit of a business or profession regardless of where earned.
Rental income, capital gains and dividends.
Income from a partnership, S corporation estate or trust, interest from bank accounts, credit unions, savings and loan associations no regardless of where income was earned.
A nonresident taxable income includes:
Salaries, bonuses, wages, commissions, fees, vacation pay, profit sharing plans and other compensation earned in
Net profits from rental of real and tangible property located in
Net profits from the operation of a business or profession conducted in
Fair market value of merchandise or services received as compensation in
Net profits from sale or exchange of person property located in
What is nontaxable income to both resident and non resident?
Gifts, inheritances and bequests.
Pensions and annuities, proceeds from insurance and retirement benefits.
Unemployment compensation, supplemental unemployment benefits, welfare relief payments and workmen’s compensation.
Interest from U S obligation such as Savings Bonds and Treasury Notes.
Compensation of service in the U S armed forces, including reserve components.
What are the requirements for remitting Individual and Corporate estimated payments?
The estimated tax for the current year may be paid in full with the first payment or in four (4) equal installments on or before April 30, June30, September 30, and January 31 of the following year.
For corporations on a fiscal year the payments are due on before the 4th 6th, 9th and 13th month after the beginning of taxable fiscal year
What are the requirements for remitting monthly or quarterly withholding tax payments?
Monthly payment: Required where the amount withheld exceeds $100.00. Payment is due on or before the last day of the month following the period in which taxes were withheld.
Quarterly payments: Allowed where amount withheld does not exceed $100.00 per month. Payment is due on or before the last date of the month following the quarter in which taxes are withheld.
Employers must file an Annual Reconciliation (PW-3) along with the Wage and Tax Statement (W-2’s) at the end of each tax year.
Who must file a Corporate Income Tax Return (P-1120)?
Every corporation doing business in the City of
Who must file a Partnership Income Tax Return (P-1065)?
Every partnership that conducted business in the City of
How long must I wait for the tax refund?
Refunds are paid normally within 90 days of filing or 45 days after April 30, whichever is later. In case a return is audited, refunds can be delayed depending on the taxpayer’s response time. Returns filed without the following documentation will also be returned to the taxpayers resulting in delayed refunds and/or disallowance of deductions/credits claimed.
Signatures
W-2’s
Allocation exclusion formula and worksite(s).
Federal schedules-C, D, E, Form 2106, etc.
Copy of 1st page of Federal 1040 to verify IRA and alimony deductions
Copy of the appropriate City income tax return if other city credit applies.
Can I electronically file my City of
Electronic filing will be available soon for
Will the City of
The City will not be mailing tax forms for 2008 except for withholding and estimated tax vouchers. The tax returns, instructions and other income tax forms can be downloaded from the City website @ www.pontiac.mi.us. The City will print flat forms and instructions for distribution to other neighboring sites.