Fillable Form L-1 - City Income Tax Return For Individuals

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TABLE INSTRUCTIONS FOR FORM L-1

OVERVIEW

TABLE B (CONTINUED)

The tables below are designed to assist in determining items that should be reported as

Line 3 – Enter Schedule income/(loss) in column under municipality where earned.

taxable to the City and items that should not be listed on your tax return. The following lists

Line 4 – Calculate total taxable non-wage Schedule income earned in each municipality by

are not all-inclusive:

adding the income/(loss) earned in each column and entering the amount on Line 4 of each

column.

Taxable Income

Non-Taxable Income

Line 5 – Enter amounts greater than $0 from Line 4 on Line 5.

Salaries, wages, and bonuses

Interest income

Line 6 – Add and enter total amount of positive net profits from applicable columns on Line

Commissions and fees

Dividend income

Sick pay

Welfare benefits

Line 7 – In each column, divide amount of individual positive net profits (Line 5) by total

Third party sick pay

Social Security benefits

positive net profits (Line 6) to get percentage of total positive net profits for each

Qualified pension plans

State unemployment

municipality.

Employer supplemental

Worker’s compensation

Line 8 – Enter total amount of prior year NOL being used (Line 2) and any amounts claimed

unemployment benefits

Insurance proceeds

on Line 4 as a (loss).

Lottery and gambling winnings

Cafeteria plans

Line 9 – To determine if total (loss) exceeds total positive net profits, add amounts from Line

Director fees

Alimony

6 and Line 8. Enter positive net profits on Line 4 of page 1 of the return. If the result is a

Vacation pay

Military pay

(loss), you will STOP using the table and enter zero (0) on Line 4 of page 1 of the return.

Employee contributions

Capital gains

Line 10 – Multiply amount on Line 8 by percentage in each applicable column of Line 7 to get

to retirement plans

Annuity distributions

allowable loss for each municipality.

Incentive payments

IRA distributions

Line 11 – Subtract amount of allowable loss in each applicable column from Line 5 to

Group term life insurance

Government allotments

calculate net profit after loss application.

over $50,000

Clergy housing allowance

Line 12 – Multiply amount of Line 11 by the City of Lakewood gross tax rate of 1.5%.

Severance pay

Precinct election official

Line 13 – Enter amount of taxes paid to other municipalities in each column where

Compensation paid in

(up to $1,000)

applicable. Proof of taxes paid to other municipalities must be attached to return or credit

the form of property

Intangible income

will be disallowed. If income was earned in township or no other municipal tax was paid,

Distributive shares of LLC

Child support

enter zero (0).

or Partnership

Retirement income

Line 14 – If other municipal tax was paid, multiply Line 11 by 0.5% (0.005) to calculate credit

Ohio-located S-Corp

amount for taxes paid to another municipality. ATTACH ALL NON-LAKEWOOD MUNICIPAL

RETURNS.

Taxable Forms

Non-Taxable Forms

Line 15 – Subtract Line 14 from amount in Line 12 to calculate the tax due after the credit

W-2

1099-R

has been applied.

1099-MISC

1099-INT

Line 16 – Add all amounts from Line 15. Enter the total on Line 10 of page 1 of the return.

Schedules K-1

1099-DIV

TABLE C: FEDERAL 2106 EXPENSES

TABLE A: WAGES AND COMPENSATION

NOTE: Enter the dates and location where the wages were earned. If a W-2 does not have a

This table is for wage income only. Special situations (i.e. Schedule income, asymmetrical

Form 2106 expense associated with it, please use Table A. Otherwise, attach all copies of

employment and residency dates) may require additional calculations and/or separate

Federal Schedule A and Form 2106.

tables. Provide calculations if not using this table.

Column 1 – Enter the wages listed in Box 5 or Box 18 (whichever is greater) of the W-2 on

PLEASE NOTE: THIS TABLE WILL CALCULATE THE APPROPRIATE TAX CREDIT ONLY IF THE

the appropriate line.

EMPLOYER WITHHELD THE CORRECT WORKPLACE TAX PERCENTAGE.

Column 2 – Enter the amount listed on Line 10 of Form 2106 or Line 6 of Form 2106-EZ, less

Section A-1: Part-Year Resident Calculation

2% of Federal Adjusted Gross Income (AGI), on the appropriate line of Column 2. If the 2106

NOTE: This section should only be used for moves within the State of Ohio. If you lived in

expense is associated with more than one W-2, the 2106 expense must be allocated to each

Lakewood for the entire year, or if you moved directly into Lakewood from a residency out

W-2 based on the percentage of the total income.

of state, enter 100% on Line 3.

EXAMPLE: Income is $10,000. One W-2 shows income of $2,000, and the other shows

income of $8,000. The 2106 expense should be split 20% to 80%, respectively.

Line 1 – Enter the number of months you lived in Lakewood.

To reiterate, the deduction is limited to unreimbursed 2106 employee business expenses

Line 2 – Divide Line 1 by 12.

less 2% of Federal AGI. If the resulting deduction equals zero or less, STOP and use Table A.

Line 3 – Multiply Line 2 by 100. This is your Part-Year Resident Percentage. Enter this

Column 3 – Subtract each corresponding line in Column 2 from the corresponding line in

percentage in Columns 1 and 3 of Section A-2.

Column 1. Total Column 3 and take this amount to Table A, Section A-2, Column 1.

Section A-2: W-2 Income Calculation

Column 4 – Enter the amount of Lakewood withholding listed on W-2. Total Column 4 and

NOTE: Enter the dates and location where the wages were earned.

take this amount to Table A, Section A-2, Column 2.

Column 5 – Enter amount of workplace withholding listed on the W-2.

Column 1 – Multiply each W-2 wage amount by the part-year percentage and enter the

amount on the appropriate line. Use wage income as reported in Box 5 or Box 18 of the W-2,

Column 6 – Multiply each line in Column 6 by 1% (0.01).

whichever is greater. Multiply the total calculation from Table C, Column 3 by the part-year

Column 7 – Enter the smaller of Column 5 or Column 6 for each appropriate line.

percentage and enter the amount on the appropriate line. Enter total on Line 1 of the

Column 8 – Multiply each line in Column 7 by 50% (0.50). Total Column 8 and take this

return. Note: Income earned in Lakewood should be calculated at 100%. Do not prorate.

amount to Table A, Section A-2, Column 6.

Column 2 – Enter tax withheld for Lakewood for each W-2. Enter the total calculation from

Table C, Column 4 on the appropriate line. Enter total on Line 6 of the return.

TABLE D: TAXPAYER OR SPOUSE EXEMPTION

Column 3 – Multiply each W-2 withholding amount by the part-year percentage and enter

If you are not required to pay city income tax, check the appropriate box, attach necessary

the amount on the appropriate line.

proof, sign and date the return, and mail to us before April

Column 4 – Multiply Column 1 by 1% (.01) for each W-2.

Column 5 – Enter the smaller of Column 3 or Column 4.

Retired – Retirees who earn wages, operate a business, own rental property, or earn other

Column 6 – Multiply Column 5 by 50% (.50). Enter total calculation from Table C, Column 8

income, are required to file a return. If your ONLY income source is retirement income (i.e.

on the appropriate line. Enter the total on Line 7 of the return.

SSI, other pensions, interest, dividends, IRA and 401K distributions), check this box. Attach a

copy of annual benefits statement.

TABLE B: NET OPERATING LOSS (NOL) CONSOLIDATED TAX CALCULATION

2016

Social Security/disability income – The only income received in

was Social Security or

This table is for non-wage “Schedule” income, or earned income not derived from

disability income. Attach a copy of annual benefits statement.

employment. This includes Federal Schedule C business income and Federal Schedule E

2016

Unemployment income – The only income received in

was unemployment. Attach a

rental/supplemental income. For residents this means all non-wage Schedule income. For

copy of Federal Form 1099-G and Federal 1040 if filed.

non-residents, only include non-wage Schedule income earned in Lakewood. ATTACH ALL

2016

No taxable income – You had no taxable income for

and don’t fall into one of the three

APPLICABLE FEDERAL SCHEDULES AND NON-LAKEWOOD RETURNS.

above exemptions. Please attach an explanation.

NOTE: Income earned due to ownership in an LLC, Partnership, (Ohio-located) S-Corp, or

Under 18 – Taxpayer was under 18 for the entire tax year. Send in W-2(s) with a copy of a

Trust is taxable and should be recorded on the appropriate line.

driver’s license or birth certificate. A refund will only be issued for Lakewood withholding.

UNSUBSTATIATED LOSSES AND LOSSES OLDER THAN 5 YEARS WILL BE DISALLOWED PER ORC

Active military duty – Provide documentation.

718.

Non-resident – Indicate move out date and present address in the space provided on page 1

Line 1 – Enter municipality where income/loss was earned.

of return. You may be required to submit proof.

Line 2 – Enter any unused prior year NOL carryforward (2011 through 2015) in column under

Business/rental closed or sold – Indicate date of transaction.

municipality where earned (Columns 1 through 5). Total each year's NOL losses in Column 6.

Losses may only be used for 5 years.

Form L-1 - City Income Tax Return For Individuals - 2016 Page 4

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