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Line 4: Total Income. Add lines 1 and 2,

cannot be less than $0.

under the W-2 or to the back of the return

then subtract line 3. Enter the total for each

may not be seen and may result in improp-

WHEN YOU HAVE FINISHED

column.

er processing.

Line 5: Exemptions. Multiply the number

Sign your return. Each spouse must sign a

of exemptions you entered on GR-1040,

joint return. If someone else prepares your

Signing a child’s return. If a return is pre-

Line 5G, by $3,000 and enter in column A.

return, the preparer must sign the return

pared for a child who is too young to sign

If the total exemption amount is more than

and enter the business name and address.

it, a parent or guardian should sign the

the income in column A, line 4, enter the

Check a box to indicate if we may discuss

child’s name, then add “by (your name),

difference in column B, if applicable.

your return with your preparer.

parent (or guardian) for minor child”.

Line 6: Taxable Income. Subtract line 5

You must attach all required schedules.

from line 4. If taxable income is reported in

Before mailing, review the list of common

column A, it may be reduced by a loss in

If you owe tax, enclose your payment, but

efforts and mailing instructions on page 1.

column B. If column A is $0, column B

do not staple it to the return. Checks stapled

Business Allocation (Nonresidents Only)

If you are self-employed and have income earned from your business, both inside and outside the city, you must complete the worksheet

below and Schedule 2 on page 2 of the GR-1040.

SCHEDULE 2 WORKSHEET - BUSINESS ALLOCATION FORMULA

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Located Everywhere

Located in Grayling

Percentage

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Divide B by A

Property Factor

1. Average net book value of real tangible personal property . . . . . 1.

$____________

a. Gross annual rentals of real property multiplied by 8 . . . . . . . 1a.

$____________

b. TOTAL (Add lines 1 and 1a) . . . . . . . . . . . . . . . . . . . . . . . . . . 1b.

$____________

________%

Payroll Factor

2. Total wages, salaries, commissions and other compensation

of all employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

$____________

________%

Sales Factor

3. Gross receipts from sales made or services rendered . . . . . . . .3.

$____________

________%

4. Total percentages - add the three percentages computed for

lines 1b, 2 and 3 which you entered in the last column

(you must compute a percentage for each of lines 1b, 2 and 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 .

________%

5. Average percentage. Divide line 4 by “3” or by the number of factors actually used. Carry this

percentage to Schedule 2, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 .

________%

Note: In determining the average percentage (line 5), a factor shall be excluded from the computation only when such factor does

not exist anywhere in the taxpayer’s business operation, and in such cases, the sum of the percentages on line 4 shall be divided by

the number of the factors actually used.

Attach this completed form to your GR-1040