Individual Income Tax Return Instructions - City Of Lebanon

Line 7: Overpayments can be either refunded or credited towards the 2006 tax year.

No refunds or credit will be given under $5.00.

Line 8: Enter your total estimated income for 2006.

Line 9: Multiply the line 8 amount by 1%; this is your estimated Lebanon tax.

Line 10: Deduct your estimated tax paid to other cities or withheld by your employer

for Lebanon.

Line 11: Subtract line 10 from 9. This is your estimated tax due and payable by

January 15, 2007.

Line 12: Divide line 11 by 4 and enter amount on this line. This amount must

accompany the tax return. The remaining 3 payments are due on the 15

of July,

October and the following January.

Line 13: Enter any credit carryover if not refunded that is shown on line 7.

Line 14: Line 12 minus line 13, this is the net estimated tax due with this return

April 17, 2006.

Line 16: Net profit (loss) from Business – attach all Federal Schedules C. Residents

are subject to Lebanon tax no matter where earned. Non-residents for Lebanon are

subject to Lebanon tax on profits derived in Lebanon.

Line 17: Rental income – attach Federal Schedule E. Residents report all profits or

losses from rental property no matter where the property is located.

Line 18: A through D. Schedule E- flow- through profit or losses levied on the

partners, members or other owners of a flow through entity excluding S-Corporation.

Businesses operating in Lebanon are required to report their distributive shares of

income or loss that was not withheld on by the business. The resident taxpayer may

claim a credit for tax paid to other localities by the business. Other income, please

provide documentation such as copies of Federal schedules or Form 1099-MISC not

already reported on Schedule C.

Line 19: Total of lines 16, 17 and 18D. NOTE a business loss cannot be used to offset

wages.

Line 20: Deduction of non-reimbursed employees business expenses. Do not complete

unless you filed Form 2106 on your Federal return. Only include deductions directly

related to wages from Lebanon sources.

(a) Enter amount shown on Form 2106 and attach form.

(b) Enter the 2% Federal AGI amount from Schedule A line 25 and attach form.

(d) Enter income not allocable to Lebanon due to part year residency and attach a

statement explaining the computation.

(e) Add the amount on line C and D.

Line 21: Total line 19, but only if it is a positive number, and line 20E enter here and

on line 2 of page 1.

Part year residents must pro-rate income based on the time they resided in Lebanon.

Tax credits must also be pro-rated in the same manner as the wages. Should you need

further assistance or explanation please contact the City Tax Department.

“Dedicated to Excellence in Public Service”

Individual Income Tax Return Instructions - City Of Lebanon - 2005 Page 2