Form Ir - Individual Reading Earnings Tax Return

FOR INDIVIDUALS WHO HAVE TAXABLE INCOME OTHER THAN WAGES OR WHO CLAIM EXPENSES AS A DEDUCTION FROM SUCH WAGES

13. TAXABLE INCOME NOT REPORTED ON W-2 (ATTACH 1099 OR FEDERAL SCHEDULES) __________________

$ _____________

14. NET PROFIT (LOSS) FROM BUSINESS (ATTACH FEDERAL SCHEDULE C)_______________ $ ____________

15.

(

)

(

)_________________ $ ____________

NET PROFIT

LOSS

FROM RENTAL AND

OR PARTNERSHIPS

ATTACH FED

SCH

16.

(

15)________________________________ $ ____________

TOTAL NET PROFIT FROM BUSINESS

LINE

PLUS LINE

17. TOTAL BUSINESS LOSS FROM PREVIOUS TAX RETURNS___________________________ $ (____________)

(3)

PERATING LOSSES MAY BE CARRIED FORWARD FOR MAXIMUM PERIOD OF THREE

YEARS

18A. SUBTRACT LINE 17 FROM LINE 16 (IF RESULT IS LOSS, PUT ON THIS LINE FOR ________ $ (____________)

FUTURE CARRY FORWARD) (Business activity losses MAY NOT be used to offset salary or wage earnings)

18B. IF THE CALCULATION ON LINE 18A (LINE 16 MINUS LINE 17) RESULTS IN A GAIN, LIST HERE ____________

$ ____________

19. DEDUCTIONS AND NON-TAXABLE INCOME (SEE INSTRUCTIONS FOR READING ALLOCATION)

A. ___________________________________________________________________

$ ____________

B. ___________________________________________________________________

$ ____________

C. TOTAL DEDUCTIONS AND/OR NON-TAXABLE INCOME (LINE 19A PLUS LINE 19B)

$ ____________

20. TOTAL TAXABLE INCOME (LINE 13 PLUS LINE 18

, MINUS LINE 19

)

ENTER TOTAL FROM LINE 20 ON THIS LINE AND ON LINE 2 ON FRONT OF THIS RETURN _______________

$ ____________

INSTRUCTIONS

FOR COMPLETION OF LINES 1 THRU 20 AND ADDITIONAL INFORMATION AND FORMS, VISIT OUR WEBSITE AT

1. Enter the grand total of qualifying wages from all W-2 forms for the tax year. Each W-2 form should be examined as the local wage should equal the

Medicare wages. QUALIFYING WAGES FOR READING INCLUDES 401k CONTRIBUTIONS, DEFERRED ANNUITY PLANS, AND STOCK

OPTIONS. GAMBLING WINNINGS ARE TAXABLE AND SHOULD BE INCLUDED ON THIS LINE.

2. To be completed only if you are required to complete Page 2. NOTE: BUSINESS/RENTAL LOSSES MAY NOT BE USED TO OFFSET W-2

WAGES.

5. Credit for tax paid to another City for 2011 is limited to 2% [.020] (PER W-2) of the amount of income on which tax was withheld. You must take each

W-2 and compute the tax credit individually – then insert the total of those tax credits on Line 5c.

a. List tax withheld by employer for Reading.

b. Total estimated tax paid to Reading.

c. Credit for tax paid to another City must be adjusted to credit limitation of 2% [.020] on that portion taxed by said City.

Tax credit per individual may not exceed 2% [.020]. Excess credit paid to other Cities may not be applied to spouse’s tax credit.

d. Overpayment carried from prior year.

e. Total lines 5a through 5d.

PLEASE NOTE: If only a portion of a Reading resident’s income (W2 wages) is taxed by the City of employment, the untaxed balance of the individual’s

income for 2011 is subject to the 2% [.020] Reading tax.

7. Overpayment will be applied to current tax year estimate. No carryover amount will be credited if amount is less than $1.00.

8. Insert the amount of income you expect to make for 2012. Estimation should not be less than last year’s earnings unless otherwise noted.

Multiply your expected income by 2% [.020] to obtain gross tax due for 2012.

11. You may pay the entire amount declared with the filing of this form.

13. Enter any taxable income that has not been reported on a W-2. Income reported on 1099-INT, 1099-R, and 1099-D is not taxable.

15. Complete if gross income on all rental property owned exceeds $300.00 per month ($3600.00 per year).

19. Deductions will be allowed only when a W-2 is attached and all expenses have been substantiated by proper schedules.

a. Employment expenses are allowable on the same percentage basis as wages are allocated and tax is paid to Reading.

b. Wages earned by a resident prior to move in or after move out of Reading can be adjusted here. All other uses of the line should be accompanied

by proper documentation.

For those residents moving in or out of Reading during the year, use Line 19B for income not subject to Reading Income Tax and bring the amount as a

deduction Forward to Page 1, Line 2; therefore, the figure on Line 3 is the “prorated” amount used to figure your Reading tax liability.

NOTE: Unless accompanied by all required substantiating documents, payment of the balance of the Tax Declared Due (Line 6) and, if required, at

least ¼ of the Estimated Tax (Line 10), this form is not a legal final return or declaration.

EXTENSION POLICY: An extension request may be granted provided an I.R.S. extension has been secured and estimated tax has been paid (at least

90% of estimate is due by January 31st). This is due on or before April 15th. The extension must include the 1st quarter estimate payment for the

current tax year (If applicable). This is an extension to file your tax return, not to pay.

2012 DECLARATION AND RETURN PAYMENT CALENDAR

APRIL 15, 2012

JULY 31, 2012

OCTOBER 31, 2012

JANUARY 31, 2013

APRIL 15, 2013

File 2011 Return

Remit 2nd

Remit 3rd

Remit 4th

File 2012 Tax Return

File 2012 Declaration

Quarterly Payment

File 2013 Declaration

Remit 1st Quarterly Payment

& Remit 1st Quarterly Payment

Page 2

Form Ir - Individual Reading Earnings Tax Return - 2011 Page 2

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