2. Rates July 1, 2010 - Present Individual Tax Rate Residents 1.5% Nonresidents 0.75% Prior to July 1, 2010 Individual Tax Rate Residents 1.3% Nonresidents 0.65%

3. Taxable Income What is taxable income? Residents A resident is subject to tax on all items included in total federal income. Taxable income includes Salaries

Bonuses

Wages

Commissions

Fees

Vacation pay

Profit sharing plan income

Any other compensation regardless of where earned

Deferred compensation distributions

Fair market value of merchandise or services received as compensation

Net profit from a business

Net profit from a profession

Net profit of any other activity regardless of where earned

Income from a partnership

Income from a S corporation

Income from an estate or trust

Interest from bank accounts

Interest from credit unions

Interest from savings

Interest from loan associations

Interest from any other income regardless of where earned

Rental income

Capital gains

Dividends

Lottery winnings won after December 30, 1988 Nonresidents A nonresident is subject to tax on all items included in total federal income. If the items are from or connected with Grand Rapids sources. Taxable Income Includes Salaries

Bonuses

Wages

Commissions

Fees

Vacation pay

Profit sharing plans

Any other compensation for services provided as an employee in city limits

Fair market value of merchandise or services received as compensation

Net profits from a business

Net profits form a profession

Net profits from any other activity conducted in city limits

Net profits from rental of real and tangible property located in city limits

Net profits from sale or exchange of personal property located in city limits

4. Nontaxable Income What is nontaxable income? Residents The following types of income are nontaxable to residents Gifts

Inheritances

Bequests

Distributions of principal from estates and trusts

Proceeds from insurance

Proceeds from pensions

Proceeds from annuities

Proceeds from retirement benefits

Proceeds from Social Security even if taxable under the Internal Revenue Code

Unemployment compensation

Supplemental unemployment benefits

Welfare relief payments

Workers compensation

Interest from U. S. obligations such as Savings Bonds and Treasury Notes

Interest from obligations of the states

Interest from subordinate units of government of the states

Compensation for service in the U. S. armed forces, including reserve components Nonresidents The following items are nontaxable to nonresidents Gifts

Inheritances

Bequests

Distributions of principal from estates and trusts

Proceeds from insurance

Proceeds from pensions

Proceeds from annuities

Proceeds from retirement benefits

Proceeds from Social Security even if taxable under the Internal Revenue Code

Unemployment compensation

Supplemental unemployment benefits

Welfare relief payments

Workers compensation

Interest from U. S. obligations such as Savings Bonds and Treasury Notes

Interest from obligations of the states

Interest from subordinate units of government of the states

Compensation for service in the U. S. armed forces, including reserve components

Interest

Dividends

Royalty income

Income from trusts and estates

Qualified deferred compensation reported on a Form 1099-R

5. Deductions What are qualifying deductions when filing? Expenses Incurred as an Employee The following expenses incurred as an employee are allowable subtractions. A part of expenses is allowable to nonresidents to the extent they apply to income taxed by Grand Rapids. Travel

Meals and lodging while away from home

Expenses as an outside salesperson. This would be a person that works away from their employer's place of business. Note - this does not include one whose primary duty is delivery.

Transportation (but not transportation to and from work)

Expenses reimbursed under an expense account

Any other arrangement made with your employer where your gross income includes reimbursement Other Allowable Deductions Alimony paid, to the extent deductible under the Internal Revenue Code. Nonresidents will need to prorate the deduction. They will prorate based upon the ratio of Grand Rapids income to total income. Child support is not deductible.

Individual Retirement Account deduction to the extent allowed under the Internal Revenue Code. Nonresidents will need to prorate the deduction. They will prorate based upon the ratio of each taxpayer's earned income in Grand Rapid to each taxpayer's earned income everywhere.

Renaissance Zone deduction

Moving expenses into the area only

6. File Your Return Online File Online There are many ways to file your return. You can print the forms here. You will just need to fill them out and mail them in. Need help? You can also come in person and we can process your return for you. We now have a new EZ resident form. This new form is through a third party site. It allows you to file online. This form can only be used by residents. File Online Upload Electronic Return If you used Turbo Tax or another Electronic Program that does not e-file you can upload your file here. Upload Return

8. Mail Your Return When you've completed your return, mail it to the address below. Mailing Address Grand Rapids Income Tax

PO Box 347

Grand Rapids, MI 49501 Drop Off Address If you’d like to come in person, visit our office at City Hall. City Hall

300 Monroe Ave NW

Third Floor

Grand Rapids, MI 49503

9. Due Dates and Extensions April 30 Deadline City tax returns are due April 30 every year.** **Due to the outbreak of Covid-19, 2019 Tax Returns are due by July 31, 2020** Keep in mind if you file and pay late there are penalty fees charged. Late fees are one percent per month up to 25% of the tax due. Interest is also due at the annual rate of 1 percent above the current prime rate. The interest rate is adjusted on January 1 and July 1 of each year. If the computed penalty and interest amount is less than $2.00, the smallest late charge is $2.00. Quarterly Estimated Payments You may need to make quarterly estimated payments. If you expect to owe more than $100 you will need to make quarterly payments. You'll make four payments per tax year. The first three payments are made during the same year. The fourth will be the year after. These payments are due on or before April 30*, June 30, September 30, and January 31. **Due to the outbreak of Covid-19, First Quarter payments are due by July 31, 2020. Second Quarter payments are still due June 30th** Electronic Funds Transfer Forms To make these payments by EFT (electronic funds transfer) you will use these forms. 2019 EFT Form (PDF, 15KB)

2019 EFT Form 2018 EFT Form (PDF, 47KB)

2018 EFT Form 2017 EFT Form (PDF, 10KB) Pay by Check If you prefer to pay your estimated payments by check, give us a call 616-456-3415. We can send you a customized booklet that you'll need to submit with your check. For Fiscal Year Taxpayers Payments are due the last day of the fourth, sixth and ninth month of the fiscal year. The final payment is made at the end of the thirteenth month following the beginning of the fiscal year.

10. Request an Extension What is an Extension? An extension is not a request for more time to pay tax due. It is an extension on filing your return. The Administrator may extend the filing date for up to six months or for the same period granted by a federal extension. Requesting an Extension You'll need to make your request in writing by using the Extension Application(PDF, 79KB). You'll also need to submit payment adequate to cover the unpaid part of your annual liability. Make sure you submit this form and your payment on or before the due date. You'll want to make sure you have everything you need. Please note if everything is not included we cannot process your request. When Not to File an Extension If you don't owe taxes or are expecting a refund, do not file an extension.

11. Amend Your Return Did you already file and need to make a correction? You can use this form to do that. 1040 Amended(PDF, 146KB)

12. Payment Options Pay your income tax bill the way that works best for you! You can submit your payment online, in the mail, over the phone, or in person. Explore your income tax payment options here. Make a Payment