Instruction For City Of Tavenna Individual Income Tax Return printable pdf download

GENERAL INSTRUCTIONS

SCHEDULE Y

Filing Requirement

Business Allocation

Every corporation, partnership, trust, association or estate, regardless of physical

Businesses who derive income from locations both inside and outside the corporate

location, that conducts business activity within the City of Ravenna must file a Net

boundaries of Ravenna must allocate their total net income (or loss) as to the portion

Profit return. If, however, you file the Federal Form 1040 and report business income

attributable to Ravenna and the portion attributable elsewhere. However, if the books

from a self-employment, rental or farm activity using Schedules C, E or F, you must file

and records of the taxpayers disclose with reasonable accuracy the net profit

using Ravenna’s individual Income Tax Return.

attributable to Ravenna, then only this portion shall be considered as having a taxable

Filing Deadline

status in Ravenna.

File no later than APRIL 15

if you are a calendar year filer. Fiscal filers must file by

SCHEDULE Z

the 15

day of the fourth month (105 days) following the close of their tax year.

Schedule Z must be completed by all partnerships and associations filing returns.

In the event that a due date falls on a Saturday, Sunday or legal holiday, the next

Amounts shown in this schedule must correspond with amounts reported on your

business day becomes the due date.

What Constitutes Net Profits

Federal Partnership Form. Attach a schedule if you need more space.

Net Profits are based on Adjusted Federal Taxable Income, as is determined under the

SCHEDULE F

municipal code (Ohio Revised Code Section 718.01). The Ohio Revised Code is

Business entities may carry operating losses forward for a maximum period of five (5)

available on-line at:

years or until exhausted, whichever is earlier. No portion of a net operating loss shall

Extension To File

be carried back against net profits of any prior year. Taxpayers doing business both in

Extensions of time to file will be granted by the City of Ravenna if ALL the following

and outside of Ravenna who allocate profits via Schedule Y must also allocate losses

conditions apply:

accordingly. Enter on the first row of the worksheet if you have unused, qualified, loss

•

The extension is received prior to the due date

carry forward amounts from tax years 2005, 2006, 2007, 2008 and 2009. If you wish

•

The taxpayer is current with all previous years’ filings

to use all or a portion of these loss carry forward amounts against a profit in 2010,

•

No amounts are owed Ravenna for previous tax filings

write the amount being used from each year, up to the total being used and enter the

The extended due date is the last day of the month following the extension month

result on Line 6 on the Business return.

approved by the IRS. This applies only to the filing of the return, not the payment of

INSTRUCTIONS FOR PREPARING NET PROFIT RETURN

the tax.

•

Print your company name, address, federal identification number, or make

SCHEDULE INSTRUCTIONS

corrections to pre-printed information.

Complete SCHEDULES X and Y, if applicable, before proceeding with the tax

•

Please print the local trade name and local business address if different

calculation on the front of the return.

from the mailing address.

Reconciliation with Federal Income Tax Return

•

Checkmark the appropriate box for the type of entity filing this return.

Enter the total taxable income as shown on your federal form(s) before

Enter amount of total taxable income located on back of return, Line 3.

deducting any federal net operating loss. In the case of a taxpayer that is not a

Enter amount of total adjustments from Schedule X, Line 6.

C Corporation and is not an individual (i.e. pass-through entities), the taxpayer

Add Lines 1 and 2. Enter the total on Line 3.

shall compute adjusted federal taxable income as if the taxpayer were a C

Enter percentage amount allocable to Ravenna from Schedule Y, Line 5.

Corporation taking note of relevant adjustments.

Multiply Line 3 by the percentage on Line 4. Enter the total on Line 5.

If you have other income taxable to Ravenna which is not shown on the Federal

Enter amount of carry forward loss from Schedule F. “Loss Used in 2008” Line

return, enter it here.

Subtract Line 6 from Line 5. Enter the total on Line 7.

Add Lines 1 and 2 and enter the total on Line 3. Place this total on Line 1 on the

Multiply Line 7 by 2.0% (.02). Enter total on Line 8.

Business return.

This is the overpayment currently credited to your account at the end of the prior

tax year.

SCHEDULE X

10.

This is the total estimated income tax payment submitted to Ravenna for the

Items not Deductible; Items not Taxable

current tax year. If an entry appears on the pre-printed form, make sure the 4

This schedule is used for the purpose of making adjustments when total income

quarter payment is included.

includes income not taxable and/or items not deductible for city income purposes. No

11.

Enter additional credits, if applicable. Please provide explanation.

amount should be added or deducted more than once to arrive at city net profits.

12.

Add Lines 9, 10 and 11. Enter the total on Line 12.

ITEMS NOT DEDUCTIBLE: Complete to determine the amount that will be

13.

If Line 8 is greater than Line 12, an amount is due to Ravenna. Subtract line 12

added back to your taxable income as shown on Line 1 (above). Add Lines 4A

from Line 8 and enter the tax you owe on Line 13. Note: If you owe $1.00 or

through 4H. Place the total on Line 4I.

less, no payment is required.

4A. Add back any losses that relate to the sale, exchange or other disposition of

14.

Add amounts of the Late Filing Fine and/or Penalty and enter on Line 14.

an asset described in Section 1221 or 1231 of the Internal Revenue Code.

Late Filing Fine: Enter $25.00 if filing a return after April 15

without a valid

4B. Add 5% of the amount deducted as intangible income (line 5B), but not the

extension. The $25.00 late filing fine will be imposed even if no tax is due.

portion of intangible income related to the sale, exchange or disposition of

Late Pay Penalty: All taxes remaining unpaid after the April 15

due date shall

property described in the Internal Revenue Code, Section 1221.

be assessed penalty at the rate of 1.5% per month. Multiply the amount on Line

4C. Add back taxes, State, Local, Ohio Franchise and other taxes paid or

13 by 1.5% (.015) to get the monthly penalty. Multiply the monthly penalty by the

accrued based on net income.

number of months past the April 15

due date.

4D. Add back guaranteed payments to partners, retired or former partners,

15.

All taxes remaining unpaid after the April 15

due date shall be assessed

members or other owners, if not already included in net profits.

interest at the rate of 1.5% per month. Multiply the amount on Line 13 by 1.5%

4E. Add back net operating loss carry forward from Federal return.

(.015) to get monthly interest. Multiply the monthly interest by the number of

4F. Except for C Corporations, add back amounts paid or accrued to qualified

months past the April 15th due date. Enter amount on Line 15.

retirement, health and life insurance plans on behalf of owners and owner

16.

Add Lines 13, 14 and 15. Enter the amount due on Line 16.

employees.

17.

If Line 12 is greater then Line 8, and not less than $1.00, you have overpaid.

4G. In the case of a real estate investment trust (REIT) or regulated investment

Subtract Line 8 from Line 12 and enter the overpayment on Line 17.

company, add back all dividends, distributions or amounts set aside for the

18.

Enter the amount being requested for a refund on Line 18. Note: Refunds in

benefit of investors.

the amount of $1.00 or less are not made. No refund will be issued until a

ITEMS NOT TAXABLE: Complete to determine the amount that will be

Declaration of Estimated Income Tax is filed, otherwise the overpayment will be

deducted from your taxable income as shown on Line 1 (above). Add Lines 5A,

applied to next year’s tax liability.

5B and 5C. Place the total on Line 5D.

19.

Enter an amount equal to or less than the overpayment (Line 17) that you wish

5A. Deduct income or gain that relate to the sale, exchange or disposition of an

to have applied to next years’ annual return. Also place this amount on Line 22

asset described in Section 1221 or 1231 of the Internal Revenue Code (IRC).

of the Declaration of Estimated Tax.

This does not apply to the recapture of depreciation described in Section 1245

20.

Enter your estimated income on Line 20.

or 1250 of the IRC.

21.

Multiply Line 21 by 2.0% (.02). This amount will represent the estimated tax

5B. Deduct intangible income (interest, dividends, patents, etc.) to the extent it is

liability for next year.

included in the Federal Taxable Income.

22.

Enter the amount from Line19.

5C. Other deductions: S Corporations may deduct items reported on Schedule K

23.

Subtract Line 22 from Line 21. Enter amount on Line 23. This amount

such as Section 179 depreciation and charitable contributions not to exceed 5%

represents the amount of outstanding tax liability.

of the federal taxable income computed in accordance with federal regulations.

24.

Multiply Line 23 by 25% (.25) and enter on Line 24. This represents the first

Partnerships may only deduct Section 179 depreciation.

quarterly estimated payment for the tax year.

Add Lines 4 and 5 and enter the total on Line 6. Place this total on Line 2 on the

25.

Add Line 16 and Line 24. Enter total on Line 25. This is the amount due to the

Business return.

City of Ravenna. Make your check payable to the CITY OF RAVENNA.

Instruction For City Of Tavenna Individual Income Tax Return

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