Instructions For Common Form Declaration Of Estimated Income Tax
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2Revised 08/24/2007
CITY OF (city name)
INCOME TAX DEPARTMENT
INSTRUCTIONS FOR
CF-1040ES, DECLARATION OF ESTIMATED INCOME TAX AND
CF-1124, QUARTERLY ESTIMATED INCOME TAX PAYMENT VOUCHERS
INSTRUCTIONS FOR COMMON FORM DECLARATION OF ESTIMATED INCOME TAX
WHO MUST MAKE A DECLARATION
A. Individuals and Unincorporated Businesses: Every resident or nonresident who expects taxable income from
which the city income tax will not be withheld must file a Declaration of Estimated Income Tax. A Declaration is not
required if the estimated tax is one hundred dollars ($100.00) or less.
A husband and wife may file a joint
Declaration.
B. Corporations: A corporation (including Subchapter S corporations) subject to the tax on all or part of its net profits
must file a Declaration of Estimated Income Tax. A Declaration is not required from corporations if the estimated tax
is two hundred fifty dollars ($250.00) or less.
C. Partnerships: A partnership which elects to pay the tax on behalf of its partners must file a Declaration of Estimated
Income Tax if the tax due from the partnership is expected to exceed one hundred dollars ($100.00).
If the
partnership elects to pay the tax on behalf of the partners, a partner will not be required to file a declaration as an
individual unless the partner has other income on which the income tax is expected to exceed one hundred dollars
($100.00).
WHEN AND WHERE TO FILE A DECLARATION AND PAY ESTIMATED TAX
A. Calendar Year Taxpayers: The Declaration for a year must be filed on or before April 30 of the tax year.
B. Fiscal Year Taxpayers: The Declaration for a fiscal year must be filed within four (4) months after the beginning of
the fiscal year.
C. Payment of Estimated Tax: The estimated tax may be paid in full with the Declaration or paid in four (4) equal
quarterly installments. Calendar year installments are due on or before April 30, June 30, and September 30 of the
tax year and January 31 of the next year. Fiscal year installments are due on or before the end of the fourth, sixth,
ninth and thirteenth month after the beginning of the fiscal year. The first installment payment must accompany the
Declaration. If the Declaration is paid late in the year, previously missed payments must accompany the Declaration.
Remittances are to be made payable to: Treasurer, City of (name of city).
D. Where to Send Payments: The Declaration and quarterly payment shall be mailed to: (list address where payment
is to be sent).
DO NOT USE OR PHOTOCOPY ANOTHER TAXPAYER’S FORMS. If you do, your payment could be applied to the
wrong account.
NOTE: Reminder notices will not be sent. Save this set of forms for use in making the remainder of this year’s
quarterly estimated payments.
CALCULATION OF ESTIMATED INCOME TAX
Calculate the estimated income tax due using the Estimated Income Tax Computation Worksheet below.
ESTIMATED INCOME TAX COMPUTATION WORKSHEET
TAX YEAR _________
1. TOTAL INCOME EXPECTED
1.
2. EXEMPTIONS (List the amount of the exemption for the named city)
2.
3. ESTIMATED TAXABLE INCOME (Line 1 less Line 2)
3.
4. ESTIMATED TAX
4.
Nonresident individuals enter (list the nonresident tax rate for the named city) of Line 3.
All other taxpayers enter (list the resident tax rate for the named city) of Line 3.
5. (city name) INCOME TAX TO BE WITHHELD
5.
6. OTHER CREDITS EXPECTED
6.
7. ESTIMATED TAX (Line 4 less Lines 5 and 6)
7.
The annual return for the previous year may be used as the basis for computing your declaration of estimated tax for the
current year. The same figures used for estimating your federal income tax, adjusted to exclude any income not taxable
or deductions not allowed under the Uniform City Income Tax Ordinance (MCL 141.601 et seq.), may be used.
Page 52 of 67
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