Individual Return (For Resident And Non-Resident) - City Of Jackson

This booklet contains a return and the instructions for filing your 2003

WHAT IS TAXABLE INCOME

individual City of Jackson income tax return. Read all of the instructions

RESIDENTS ONLY

carefully before completing your 2003 returns. Since some of the infor-

A resident is subject to tax on all items included in total Federal income.

mation on your J1040 may be based on your Federal 1040, it is sug-

(Subject to certain exclusions as listed in "What is Non-Taxable

gested that your J1040 be prepared after you complete your Federal

Income".) Taxable income would include:

income tax return.

1. Salaries, bonuses, wages, commissions, fees, vacation pay, profit

sharing plan income, and other compensation regardless of where

WHO MUST FILE A TAX RETURN

earned.

Every resident and non-resident who had gross income of $600 or more

2. Proceeds from regular IRA’s, deferred Compensation programs and

from sources listed under "What is Taxable Income" must complete and

incentives for early retirement are all taxable at 1%.

file a return. If you wish to claim a refund because the tax withheld or

3. Fair market value of merchandise or services received as compensation.

paid is more than the tax due, you must file a return. If you filed a

4. Net profit from the operation of a business or profession or other

Declaration of Estimated Tax for 2002 you must file an annual return

activity regardless of where earned.

even though there is no change in tax liability. Each partner in a partner-

5. Income from a partnership, estate or trust, interest from bank

accounts, credit unions, savings and loan associations and other

ship as such elects to file and pay the tax for all of the partners. In the

income regardless of where earned.

latter case the partner may take credit on line 10 for tax payments made

6. Rental income, capital gains, and dividends.

by the partnership in his behalf.

7. Amounts received for personal injuries, sickness, and disability are

RESIDENCY

taxable to the extent provided by the Federal Internal Revenue Code.

A Jackson RESIDENT is a person domiciled in Jackson "Domicile"

NON-RESIDENTS ONLY

means a place where a person has his true, fixed and permanent home.

A non-resident is subject to tax on all items included in total Federal

A NON-RESIDENT is a person domiciled outside the city.

Income which are derived from or connected with Jackson sources as

follows:

CHANGE OF RESIDENT STATUS

1. Salaries, bonuses, wages, commissions, fees, vacation pay, profit

Any person whose residence changed either from a resident to a non-

sharing plans and other compensation for services rendered as an

resident or a non-resident to a resident during the taxable year will file

employee in Jackson.

according to the instructions from Schedule 4.

2. Fair market value of merchandise or services received as compensation.

3. Net profits from the operation of a business or profession or other

MARRIED PERSON-JOINT OR SEPARATE RETURNS

activity conducted in Jackson (See Schedule 3 for business allocation.)

Married persons may file either a joint or separate return. Residents fil-

4. Net profits from rental or real and tangible property located in Jackson.

ing jointly must include all income of husband and wife. Non-residents

5. Net profits from sale or exchange of personal property located in Jackson.

filing jointly must include Jackson earned income of both husband and

6. Amounts received for personal injuries, sickness, and disability are

wife. If you file jointly, both names must be listed in the heading and

taxable to the extent provided by the Federal Internal Revenue Code.

both must sign the return. If you file separately, dependents can only be

WHAT IS NON-TAXABLE INCOME

claimed by the spouse who would be entitled to claim such dependents

RESIDENTS AND NON-RESIDENTS

under the Federal Internal Revenue Code.

The following types of income are not taxable both to a resident and a

DECEASED TAXPAYERS

non-resident, and they may be listed as subtractions, if they are includ-

ed on line 1 of J1040 (but only if included.) Attach federal schedules

A return for a taxpayer who died during the taxable year should be filed

as needed.

on the same basis as he would have filed if he had lived. If a refund is

1. Gifts, inheritances, bequests and distributions of principal from

due on the return and the check is to be made payable to persons other

estates and trusts.

than the surviving spouse, a letter of explanation should be attached.

2. Proceeds from Social Security, insurance, pensions, annuities and

retirement benefits even if taxable under the Federal Internal Revenue

DUE DATE

Code.

Your return is due on or before April 30, 2004 or within four months after

3. Amounts received for disability are excluded only to the extent provid-

the end of your fiscal year accepted by the Internal Revenue Service.

ed by the Federal Internal Revenue Code.

An extension for your city return is automatic if you have been granted

4. Unemployment compensation, supplemental unemployment benefits,

an extension for your Federal 1040 and you submit a copy of it to the

welfare relief payments, workmen's compensation.

Income Tax Division by the date your city return was first due.

5. Interest from obligations of the United States, such as Savings Bonds

Extensions may be granted by writing the Jackson Income Tax Division.

and Treasury Notes, obligations of the states, or subordinate units of

government of states.

DECLARATION OF ESTIMATED TAX

6. Dividends on an insurance policy.

If you expect that your City of Jackson tax will exceed amounts withheld

7. Compensation received for service in the armed forces of the United

States, including Reserves.

from your pay by $100 or more, you must file a Declaration of Estimated

8. IRA payments made on income taxed by the City only.

Tax: form J1040ES by April 30, and pay at least one-fourth (1/4) of the

estimated tax with your declaration. The remaining balance will be due

NON-RESIDENTS ONLY

in three equal installments to be paid on June 30, September 30 and on

The following items are non-taxable to non-residents only:

January 31. If you file an estimate you must still file an annual return.

1. Interest, dividends and royalty income.

You may amend your estimate at the time of making any quarterly pay-

2. Income from trusts and estates.

ment. Failure to file when required will result in an assessment of inter-

TO COMPLETE YOUR RETURN

est and penalty charges.

Residents - turn to Residents Only, Instructions for Preparing Tax Return.

Non-Residents - turn to Non-Residents Only, Instructions for Preparing

Tax Return.

Part-Year Residents - see Schedule 4, instructions enclosed in booklet.

Individual Return (For Resident And Non-Resident) - City Of Jackson - 2003 Page 2

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