Instructions For Form Lf - Long Form Return - City Of Newark Page 11
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12Worksheet D Instructions
Part 1 - 2106 Employee Business Expenses
The Newark Tax Ordinance limits the 2106 Business Expense adjustment. To determine if you
qualify for this adjustment, please answer the following:
Is Line 4 the only line on your 2106 with reported expenses?
If the answer is yes, you cannot deduct your expenses for the City. Per IRS Regulations, you do not
qualify to file a 2106 so the adjustment is not allowed by Newark.
Did you file a Schedule A with the IRS?
If the answer is no, you cannot deduct your expenses for the City. Per IRS regulations, you must
file a Federal Schedule A to qualify for 2106 Expenses
If you qualify, please calculate your adjustment by following these instructions.
Instructions
Enter your employer's EIN from Box b of the W-2 that you are adjusting.
Line 1
Enter your Employee Business Expenses from line 10 of your 2106 or line
6 of your 2106EX.
Line 2
Enter your Federal Adjusted Gross Income from line 37 of your Federal 1040.
Multiply Line 2 by 0.02 and enter result.
Line 3
Subtract Line 3 from Line 1 and enter result on Line 4.
Line 4
Enter total on Line 4 on Line 3 of your 2016LF
If other city taxes were withheld from your W-2 and you take a 2106 adjustment, the other city
wages must also be adjusted by the 2106 expenses before calculating your credit. See Section 3
of Worksheet C for help with this calculation.
Part 2 - W-2 with 2106 Expenses
This section is for only W-2s that you have 2106 Expenses against. All other W-2s with other city
taxes withheld should be entered in Section 2 of this worksheet.
Instructions
Column
Enter your employer's EIN from Box b of your W-2.
A
Page 11
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