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NONRESIDENT FILING INSTRUCTIONS

INSTRUCTIONS FOR COMPLETING PAGE 1

OF YOUR BC-1040 RETURN, LINES 1 - 13B

(D) Alimony (CHILD SUPPORT IS NOT DEDUCTIBLE) deducted on your 2005 Federal return computed

as follows:

Battle Creek Income (Line 4, Page 1) (Without alimony deduction)

Every nonresident individual who earned income in Battle Creek must complete form BC-1040 and file their

return on or before April 30, 2007.

_______________________________X Alimony Paid

TAXABLE INCOME

Federal Adjusted Gross Income (Without alimony deduction)

The following income is subject to tax:

(1 )

An individual may deduct alimony, separate maintenance payments and principle sums

(A) Compensation received for work or services performed in the City of Battle Creek.

payable in installments, to the extent includable in the spouse’s adjusted gross income

(B) Net profit from the operation of a business or profession attributable to any business activity conducted

under the Federal Internal Revenue Code, but only to the extent deductible by the individual

in Battle Creek, whether or not such business is located in the City of Battle Creek.

under the Federal Internal Code. (To be allowed this deduction, the recipient’s name,

address and social security number must be supplied.) A nonresident individual may

Creek.

deduct only that proportion of his/her alimony, separate maintenance or principle sums

payable in installments that his/her income taxable under this ordinance bears to his/her

LINE 1 —GROSS INCOME FROM EMPLOYERS

total Federal Adjusted Gross Income.

All wages, salaries, sick pay, tips, bonuses, profit sharing, severance pay, etc., reported on W-2 forms

Part-year residents must allocate deductions the same way they allocate income.

provided by an employer which was earned in the City of Battle Creek for any part of the year.

(A) Nonresidents who worked 100% of their time in Battle Creek: Show total wages reported on your W-2

All of the above deductions are limited to the amount taken on your Federal return and to the extent they

statement(s) (ATTACH EMPLOYER SUPPLIED W-2(s).)

apply to income taxable under the Battle Creek Income Tax Ordinance. Nonresidents must allocate

(B) Nonresidents who perform only part of their services in Battle Creek: income from W-2 statements

deductions the same way they allocate income. A copy of the Federal schedule(s) and other requested

issued to a nonresident by any employer for wages earned both inside and outside the City of Battle

documentation supporting deductions must be attached. (FAILURE TO ATTACH CORRECT, COMPLETE

Creek must be computed to determine the taxable amount. This computation is figured by completing

SCHEDULES AND DOCUMENTATION WILL RESULT IN DEDUCTIONS BEING DISALLOWED AND/OR

Schedule 1, Page 2, of the BC 1040 form. The total taxable wages from Line E of Schedule 1 must be

DELAY THE PROCESSING OF YOUR RETURN UNTIL PROPER SUBSTANTIATION IS SUPPLIED.)

entered on Line 1 on Page 1. (Note: the “Days Worked” on Schedule 1, Page 2, refer only to the actual

days you were on the job. You are not on the job when there is a holiday, or you are on sick leave; a

CALCULATION OF TAX

vacation or annual leave) (Hours may be substituted for days.) (YOU MUST FURNISH VERIFICATION

OF YOUR ALLOCATION .)

LINE 4—ADJUSTED INCOME

LINE 2— ADDITIONS TO INCOME

Add lines 1 (W-2 Income) and 2 (Additions to Income), subtract Line 3 (Subtractions From Income) and

(Do Not Include Losses on this line; See Subtractions.)

enter the result on Line 4.

Include any income from business activity within the City of Battle Creek. (ATTACH A COPY OF YOUR

LINE 5—EXEMPTIONS

FEDERAL SCHEDULE C.) If you are allocating this income, please show us how you arrived at the percent-

age you are using.

Compute the exemption deduction by taking the total number of exemptions, multiply that number by

$750.00 and enter the result on Line 5.

Partnership income, rental income, sales and exchanges of real and tangible personal property located in

Battle Creek. If you have allocated your income on Schedule 1 of Page 2 you must apply the percentage

LINE 6—TAXABLE INCOME

applied to your wages to your total distribution and include this amount on Line 2, Page 1 of your City of

Battle Creek return. (ATTACH SCHEDULES FROM YOUR FEDERAL INCOME TAX RETURN TO SUPPORT

Subtract the total amount for personal exemptions on Line 5 from Line 4 and enter remainder as total

ALL TAXABLE INCOME.)

income subject to tax on Line 6.

(A) Partnerships engaged in business activity in the City of Battle Creek are required to file City of Battle

LINE 7—CALCULATION OF TAX DUE FOR NONRESIDENTS

Creek Partnership returns (BC-1065).

(B) Report your share of income from a partnership. Enter your share of ordinary income only. Your

share of qualifying dividends, capital gains, etc., are treated as belonging to you as an individual.

Multiply Line 6 by 1/2% (.005) to determine the City of Battle Creek tax and enter the tax on Line 7.

plans. These plans are classified as wages not subject to withholding. Add all income from W-2

LINES 8 THROUGH 13C

Statements and enter the total on Line 2 . (DO NOT INCLUDE LOSSES, SEE SUBTRACTIONS LINE

3.) (ATTACH SCHEDULES FROM YOUR FEDERAL INCOME TAX RETURN TO SUPPORT LINE 2.)

TO COMPLETE YOUR RETURN, FOLLOW THE INSTRUCTIONS LISTED UNDER “FILING

-I-

INSTRUCTIONS FOR PAGE 1" ON PAGE

LINE 3—SUBTRACTIONS FROM INCOME (LOSSES) AND

ALLOWED DEDUCTIONS

NOTE The following forms can be obtained at our website:

Services/IncomeTax/Overview.htm, from the City Income Tax Office, Room 114, City Hall or

Enter the deductions you are allowed to subtract from your taxable Battle Creek income. Include losses

call us.

resulting from business activity within the City of Battle Creek, as reported on your 2006 Federal income tax

return, but only to the extent allowed under the City Income Tax Ordinance. All subtractions must apply to

BC-1040

Individual Return

income earned from activity within the City of Battle Creek. The same percentages that are applied to your

BC-1040RZ

Individual Return Renaissance Zone Deduction

taxable income must also be applied to all deductions from that taxable income.

BC-1040ES

Individual Estimate

BC-1041

Fiduciary Return

Allowable deductions under the City of Battle Creek Income Tax Ordinance are as follows:

BC-1065

Partnership Return

(A) I.R.A. contributions to your Individual Retirement Account, to the extent provided in Section 219 of

the Federal Internal Revenue Code. (ATTACH PROOF OF PAYMENT.) Proof of payment includes, but

BC-1065RZ

Partnership Return Renaissance Zone Deduction

is not limited to, a copy of a receipt(s) for IRA contribution(s), copy of canceled check(s), etc., that

BC-1120

Corporate Return

clearly indicates it is for the purchase of an I.R.A.

BC-1120RZ

Corporate Return Renaissance Zone Deduction

(B) A Keogh Retirement Plan, to the extent it applies to income earned in Battle Creek.

BC-1120ES

Corporate Estimate

BC-2106

Employee Business Expense Schedule

employer, incurred in the service of your employer as a requirement of your job, and are LIMITED

BC-4868

Extension of Time Request Form

TO THE FOLLOWING:

BC-1040 X

Amended Individual Return

(1)

Expenses for travel, meals, and lodging while away from home.

(2)

Expenses incurred as an outside salesperson who works away from his/her employer’s

BC-Schedule 3

Part Year Return

place of business (does not include driver-salesperson whose primary duty is service and

delivery).

If you are required to file and pay your City tax on Estimated Vouchers, and you have not received a

(3)

Transportation (but not transportation to and from work).

pre-printed set of 2007 City Income Tax Estimate Vouchers, please call or come into the office and

(4)

Federal Schedule 2106 line (4) Business expense not allowed on City returns -

obtain the forms.

only allowed on Federal.

THE CITY OF BATTLE CREEK INCOME TAX OFFICE is located at: 10 NORTH DIVISION STREET, ROOM

(5)

Expenses reimbursed under an expense account or other arrangement with your employer,

if the reimbursement has been included in gross earnings reported (ATTACH A COPY OF

114, CITY HALL Mail items to: P .O. BOX 1657, BATTLE CREEK, MI 49016-1657. Telephone number is

(269) 966-3345, and our office hours are 8 to 5 Monday through Friday.

FORM BC-2106.)

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Form Bc-1040 - Individual Return Resident And Nonresident Instructions - Income Tax Division City Of Battle Creek - 2006 Page 4

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