Form Ir - South Lebanon Income Tax Return - 2009 (Page 2 of 2) in pdf

PAGE 2

MUST BE COMPLETED ONLY BY THOSE WHO HAVE TAXABLE INCOME OTHER THAN

WAGES OR WHO CLAIM A DEDUCTION FROM SUCH WAGES.

13. NET PROFIT (LOSS) FROM BUSINESS (ATTACH FEDERAL SCHEDULE C)….………………………………………..…….$___________________

14. RENTAL INCOME (ATTACH FEDERAL SCHEDULE E)……………………………………………………………………………$___________________

15. OTHER INCOME (ATTACH FEDERAL FORMS & SCHEDULES)

(A) Schedule K-1 Income……………………………..$____________________

(B) Miscellaneous Income -1099-MISC……………..$____________________

16. TOTAL OTHER INCOME combine 13, 14, and 15C…………………………………………………………...........................$_____________________

NET LOSS FROM A BUSINESS ACTIVITY CANNOT BE USED TO OFFSET WAGE EARNINGS. LOSS CARRY FORWARD LIMITED TO 5 YEARS.

17. DEDUCTIONS:

(only complete this section if you had allowable Federal Form 2106 deductions or you were a part year resident)

(A) Employee business expenses (ATTACH FORM 2106)……………………………………………………................$____________________

(B) Part year resident income exclusion (ATTACH EXPLANATION)…………………………………………………….$____________________

18. ADD LINE 16 (ONLY IF A POSITIVE NUMBER) AND 17C (CARRY TO LINE 2, PAGE 1)………………………….….……$____________________

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INSTRUCTIONS

LINE 1: Enter the total qualifying wages from all W-2’s. In general, you will use box 5 (Medicare Wage Box) to compute taxable income for your return. Pre-1986

employees exempt from Medicare will not have income listed in box 5 due to Medicare grand fathering provisions. This does not mean you are exempt from paying on these

W-2 wages. Income taxable by South Lebanon may differ from income taxable by the IRS. Do not use amounts from federal returns, as they may not be correct for South

Lebanon tax purposes. All W-2’s must be attached to the return along with Page One of the Federal 1040.

LINE 2: Enter total of income reported on page 2, line 18.

LINE 3: Add or subtract line 1 and 2. A loss from Federal Schedule C, E cannot be used to offset wages. This is your taxable income for 2009.

LINE 4: Multiply line 3 by 1%; this is your South Lebanon tax.

LINE 5: Payments and Credits:

A. To be used for reporting taxes withheld by your employer for the Village of South Lebanon.

B. Total 2009 estimated tax paid.

C. Overpayments of 2008 tax applied to the 2009 estimated tax.

D. An adjustment must be made if the tax paid to another municipality was at a higher rate than 1%. For example, if your W-2 reflects City of Hamilton tax

withheld of $100.00 during the year, you must reduce the credit for this payment to $25.00 since Hamilton has a 2% tax rate, and the rate for which you receive

credit is limited to ½ of 1%.

E. Total lines 5A through 5D.

LINE 6: Indicates amount of TAX DUE. If the sum of this line is $1.01 or more, full payment must be received on or before the due date (April 15

). An amount $1.00 and

under is not collectible. If you are filing past the due date include the late filing penalty of $25.00, the tax department will figure any other interest charges.

LINE 7: Overpayment will be applied to your 2010 estimated tax unless a refund is requested. By law, refunds or credits in excess of $10 are reported to the IRS.

LINES 8 THRU 11: The total estimated tax due on line 11 must be paid at the time of filing –No later than April 15

LINE 12: TOTAL AMOUNT DUE.

LINE 13: Net profit (loss) –attach all Federal Schedules. Residents are subject to South Lebanon tax no mater where earned. Non-residents of South Lebanon are subject

to South Lebanon tax on profits derived in South Lebanon. Loss carry forwards are limited to 5 prior years.

LINE 14: Rental Income –attach Federal Schedule E. Residents report all profits or losses from rental property no matter where the property is located. Loss carry forwards

are limited to 5 prior years.

LINE 15: A through B enter income then total on line C. 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 South Lebanon are required to report their distributive share of income or loss that was not withheld on by the business.

The resident taxpayer may claim a credit for taxes paid to other localities by the business, subject to the ½% limitation. Other income, please provide documentation such

as copies of Federal Schedules or Form 1099-MISC not already reported on Schedule C, and form W2-G if received.

LINE 16: Total of lines 13, 14 & 15C. NOTE: Losses cannot offset wages.

LINE 17: Deduction or non-reimbursed employee business expenses. Do not complete unless you filed Form 2106 on your Federal return. Only include deductions directly

related to wages from South Lebanon sources.

A. Enter amount shown on Form 2106 and attach form.

B. Enter income not allocable to South Lebanon due to part year residency and attach a statement explaining the computation.

C. Add the amount on lines A and B.

LINE 18: Total line 16, but only if it is a positive number and line 17C enter here and on line 2 of page 1.

General Information:

TAXABLE INCOME – All qualifying wages, and other compensation (Form 1099 MISC) paid by an employer or employers before deductions, and/or the net profits from the

operation of a business, profession or other enterprise or activity, rental income, sick pay, vacation pay, dismissal or severance pay, insurance premium payments by

employer included on W-2, and deferred compensation are also taxable for village purposes.

NON-TAXABLE INCOME – Interest, dividends, capital gains, social security benefits, welfare benefits, unemployment compensation, pensions, annuities, gambling

winnings, active duty military pay, alimony, child support, election poll worker wages, and earnings of a full time student.

EXTENSION POLICY – Extensions may be granted for filing of the annual return, provided an IRS extension has been requested. A copy of the IRS extension request

form must be submitted on or before the filing deadline.

The due date for filing this return is Wednesday, April 15, 2010. The Village of South Lebanon has mandatory filing even though no tax may be due. If you have

received an income tax return form it is under the assumption of the tax office you are filing a return. If you have received this form in error, you must notify the tax

office. Otherwise, an income tax return form is expected.

2010 DECLARATION AND RETURN PAYMENT CALENDAR

APRIL 15, 2010

JULY 15, 2010

OCTOBER 15, 2010

JANUARY 15, 2011

File 2009 Return

Make 2

Make 3

Make 4

File 2010 Declaration

quarterly payment