CITY OF GRAND RAPIDS INCOME TAX DEPARTMENT INSTRUCTIONS FOR GR-1040ES, DECLARATION OF ESTIMATED INCOME TAX AND QUARTERLY ESTIMATED INCOME TAX PAYMENT VOUCHERS INSTRUCTIONS FOR GRAND RAPIDS DECLARATION OF ESTIMATED INCOME TAX Enclosed is a set of forms for filing a Declaration of Estimated Income Tax and making quarterly estimated income tax payments. The forms are pre-identified with the name and account number for persons who filed a declaration for the past year and persons who may be required to make estimated payments. The forms are blank for persons requesting estimated payment forms. An individual’s account number is their Social Security Number or the seven-digit number assigned by the Income Tax Department. The account number for a corporation or partnership is their Federal Employer Identification Number. Estimated income tax payments may be made: 1) by check with estimated income tax payment voucher mailed to the Department; 2) by a direct debit to the taxpayer’s bank account by completing the reverse side of the estimated payment voucher and mailing it to the Department; or 3) by submitting a payment using the Individual Estimated Payments section of the Department’s Income Tax Preparation tool (www.municonnect.com/grandrapids) DO NOT USE OR PHOTOCOPY ANOTHER TAXPAYER’S FORMS. If you do, your payment could be applied to the wrong account. If forms were lost or never received, call (616) 456-3415 to request a blank set of forms or print them from City’s website, www.grcity.us/incometax. 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. 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 city 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. D. Where to Send Payments: The Declaration and quarterly payments shall be filed with the Grand Rapids Income Tax Office, PO Box 347, Grand Rapids, MI 49501-0347. CALCULATION OF ESTIMATED INCOME TAX Calculate the estimated Grand Rapids income tax due using the Estimated Income Tax Computation Worksheet below. ESTIMATED INCOME TAX COMPUTATION WORKSHEET 1. TOTAL GRAND RAPIDS INCOME EXPECTED 2. EXEMPTIONS ($600 FOR EACH EXEMPTION) 3. ESTIMATED GRAND RAPIDS TAXABLE INCOME (Line 1 less line 2) 4. ESTIMATED GRAND RAPIDS TAX Nonresident individuals enter .75% (.0075) of line 3. All other taxpayers enter 1.5% (.015) of line 3. 5. GRAND RAPIDS INCOME TAX TO BE WITHHELD 6. OTHER CREDITS EXPECTED 7. ESTIMATED TAX (Line 4 less lines 5 and 6) 8. QUARTERLY PAYMENT AMOUNT (Line 7 divided by 4)

Page 1 of 2 pages

TAX YEAR _________ 1. 2. 3. 4. 5. 6. 7. 8.

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 Grand Rapids Income Tax Ordinance, may be used. CALCULATION OF THE ESTIMATED TAX PAYMENT DUE EACH QUARTER Compute the estimated tax and the quarterly estimated payment amount using the Estimated Income Tax Computation Worksheet on page 1. Enter the amount of estimated income tax on line 1 of the payment voucher and the amount of the quarterly estimated tax payment line 2. On the estimated declaration report on line 3 the prior year’s credit carryover and enter on line 4 the difference between the quarterly amount and the prior year credit carryover, line 2 less line 3. AMENDED DECLARATION If, after you filed a Declaration, you find that your estimated tax is substantially increased or decreased as a result of a change in taxable income, exemptions, tax credits or tax withheld, you may amend your estimate at the time of making any quarterly estimated payment. If amending the amount of estimated income tax for the year, enter the amended amount of estimated income tax on line 1 of the payment voucher for the quarter and the amount of the estimated payment for the quarter on line 2. LATE PAYMENT OR UNDERPAYMENT OF ESTIMATED INCOME TAX If you fail to make the required quarterly estimated tax payments, pay late or underpay, interest and penalty may be charged. The interest rate is one percent above the prime rate. The interest rate is adjusted on January 1 and July 1 each year. The penalty rate is one percent per month. INTEREST AND PENALTY SAFE HAVEN If the total amount of tax withheld, tax credits and estimated tax paid is seventy percent (70%) or more of the tax due for the current or previous tax year, interest and penalty will not be charged. The quarterly safe haven payment amount is 70 percent of the annual tax amount divided by four. The filing of a declaration of estimated tax does not excuse the taxpayer from filing an annual income tax return even though there is no change in the declared tax liability. INCOME SUBJECT TO GRAND RAPIDS INCOME TAX A. Residents: All salaries, wages, bonuses, commissions and other compensation; net profits from business or profession; net rental income; capital gains less capital losses; interest and dividends; income from estates and trusts; and other income. B. Nonresidents: Salaries, wages, bonuses, commissions and other compensation for services rendered or work performed in Grand Rapids; net rental income from property located in Grand Rapids; net profits from a business, profession or other activity to the extent that it is from work done, services rendered or activity conducted in Grand Rapids; capital gains less capital losses from the sale of real or tangible personal property located in Grand Rapids. WITHHOLDING TAX AND OTHER TAX CREDITS A. Withholding Tax: You may subtract from your estimated Grand Rapids income tax the amount of Grand Rapids income tax expected to be withheld. B. Income Tax Paid by Partnership: If you are a member of a partnership which elects to file a return and pay the tax on behalf of its partners, you may subtract from your estimate of Grand Rapids income tax, the amount of tax expected to be paid by the partnership for your distributive share of net profits. C. Income Tax Paid to Another Municipality: Residents of Grand Rapids who pay income tax to another municipality on income earned outside Grand Rapids may subtract from their estimate of Grand Rapids income tax the amount of income tax expected to be paid to the other municipality. The credit may not exceed the amount of tax assessable under the Grand Rapids Income Tax Ordinance on the same income of a nonresident. FORMS OR INFORMATION Forms or information may be obtained from the Income Tax Department section of the City of Grand Rapids website, www.grcity.us/incometax, via telephone by calling (616) 456-3415 or from the Grand Rapids Income Tax Office, 300 Monroe NW, Room 380, Grand Rapids, MI 49503. PAYMENT RECORD FOR TAX YEAR __________ PAYMENT DATE PAID FIRST QUARTER PAYMENT SECOND QUARTER PAYMENT THIRD QUARTER PAYMENT FOURTH QUARTER PAYMENT

CHECK NUMBER

(Keep this for your records.) ESTIMATED TAX PAID

TOTAL ESTIMATED TAX PAYMENTS Mail estimated tax forms and payments to: Grand Rapids Income Tax Office PO Box 347 Grand Rapids, MI 49501-0347

Revised 1/27/2011

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GR-1040ES

CITY OF GRAND RAPIDS DECLARATION OF ESTIMATED INCOME TAX

DATE DUE

ESTIMATED DECLARATION

1

ACCOUNT NUMBER (SSN OR FEIN)

May 02, 2011

Due Date

2011

May 2, 2011

1.

ANNUAL ESTIMATED INCOME TAX

1.

2.

QUARTERLY AMOUNT 1 divided by 4)

2.

3.

PRIOR YEAR CREDIT CARRYOVER

TAXPAYER

(Line

3.

QUARTERLY ESTIMATED TAX 4. PAYMENT (Line 2 less line 3)

(Pay this amount) 4.

SIGNATURE OF TAXPAYER (and spouse if joint declaration) MAKE REMITTANCE PAYABLE TO: CITY TREASURER

MAIL CHECK WITH THIS CARD TO: INCOME TAX DEPARTMENT P.O. BOX 347 GRAND RAPIDS, MI 49501-0347

CUT ON DOTTED LINES

GR-1040ES CITY OF GRAND RAPIDS QUARTERLY ESTIMATED TAX PAYMENT VOUCHER

DATE DUE

Jun 30, 2011

2

SECOND INSTALLMENT

ACCOUNT NUMBER (SSN OR FEIN)

Due Date

2011

Jun 30, 2011

1.

ANNUAL OR AMENDED ESTIMATED INCOME TAX

1.

2.

QUARTERLY ESTIMATED TAX PAYMENT

2.

TAXPAYER

MAKE REMITTANCE PAYABLE TO: GRAND RAPIDS CITY TREASURER

(Pay this amount)

MAIL CHECK WITH THIS CARD TO: INCOME TAX OFFICE P.O. BOX 347 GRAND RAPIDS, MI 49501-0347

CUT ON DOTTED LINES

Electronic direct debit payment of estimated tax is allowed. See reverse side of payment voucher for information Electronic Check Conversion: When your payment is made by check, the City of Grand Rapids may electronically debit your checking account for the amount of your check on the day that we receive your payment. If the payment is processed electronically, the check will not be returned with your checking account statement, but will be reflected as an ‘electronic payment’. The City of Grand Rapids will consider receipt of a payment by check as authorization to process your payment electronically.

ELECTRONIC ESTIMATED INCOME TAX PAYMENT FORM

To make an electronic direct debit payment, write in the bank account information (a, b and c below), the taxpayer's name, the taxpayer's account number and the quarterly payment information for the quarter(s) to be paid. Then complete the payment amount, effective date for each payment to be withdrawn from your account and sign the form. You may provide information for payments to be withdrawn for one or more quarters. The individual payments will be withdrawn within five business days of the effective date entered. TAXPAYER'S NAME

a. Bank routing number: b. Bank account number: c. Bank account type:

Checking

Savings PAYMENT AMOUNT

First quarter payment due May 2, 2011

,

.

Second quarter payment due June 30, 2011

,

.

Third quarter payment due September 30, 2011

,

.

,

.

Fourth quarter payment due January 31, 2012

0 0 0 0

EFFECTIVE DATE FOR PAYMENT

0 0 0 0

Round cents to up to the next dollar

/

/

/

/

/

/

/

/

Date format: MM/DD/YYYY

TAXPAYER'S ACCOUNT NUMBER

Signature of taxpayer authorizing withdrawal from listed bank account

ELECTRONIC ESTIMATED INCOME TAX PAYMENT FORM

To make an electronic direct debit payment, write in the bank account information (a, b and c below), the taxpayer's name, the taxpayer's account number and the quarterly payment information for the quarter(s) to be paid. Then complete the payment amount, effective date for each payment to be withdrawn from your account and sign the form. You may provide information for payments to be withdrawn for one or more quarters. The individual payments will be withdrawn within five business days of the effective date entered. TAXPAYER'S NAME

a. Bank routing number: b. Bank account number: c. Bank account type:

Checking

Savings PAYMENT AMOUNT

First quarter payment due May 2, 2011

,

.

Second quarter payment due June 30, 2011

,

.

Third quarter payment due September 30, 2011

,

.

,

.

Fourth quarter payment due January 31, 2012

0 0 0 0

EFFECTIVE DATE FOR PAYMENT

0 0 0 0

Round cents to up to the next dollar

/

/

/

/

/

/

/

/

Date format: MM/DD/YYYY

TAXPAYER'S ACCOUNT NUMBER

Signature of taxpayer authorizing withdrawal from listed bank account

GR-1040ES CITY OF GRAND RAPIDS QUARTERLY ESTIMATED TAX PAYMENT VOUCHER

DATE DUE

3

THIRD INSTALLMENT

ACCOUNT NUMBER (SSN OR FEIN)

Sep 30, 2011

Due Date

2011

Sep 30, 2011

1.

ANNUAL OR AMENDED ESTIMATED INCOME TAX

1.

2.

QUARTERLY ESTIMATED TAX PAYMENT

2.

TAXPAYER

MAKE REMITTANCE PAYABLE TO: GRAND RAPIDS CITY TREASURER

(Pay this amount)

MAIL CHECK WITH THIS CARD TO: INCOME TAX OFFICE P.O. BOX 347 GRAND RAPIDS, MI 49501-0347

CUT ON DOTTED LINES

GR-1040ES CITY OF GRAND RAPIDS QUARTERLY ESTIMATED TAX PAYMENT VOUCHER

DATE DUE

Jan 31, 2012

4

FOURTH INSTALLMENT

ACCOUNT NUMBER (SSN OR FEIN)

Due Date

2011

Jan 31, 2012

1.

ANNUAL OR AMENDED ESTIMATED INCOME TAX

1.

2.

QUARTERLY ESTIMATED TAX PAYMENT

2.

TAXPAYER

MAKE REMITTANCE PAYABLE TO: GRAND RAPIDS CITY TREASURER

(Pay this amount)

MAIL CHECK WITH THIS CARD TO: INCOME TAX OFFICE P.O. BOX 347 GRAND RAPIDS, MI 49501-0347

CUT ON DOTTED LINES

Electronic direct debit payment of estimated tax is allowed. See reverse side of payment voucher for information Electronic Check Conversion: When your payment is made by check, the City of Grand Rapids may electronically debit your checking account for the amount of your check on the day that we receive your payment. If the payment is processed electronically, the check will not be returned with your checking account statement, but will be reflected as an ‘electronic payment’. The City of Grand Rapids will consider receipt of a payment by check as authorization to process your payment electronically.

ELECTRONIC ESTIMATED INCOME TAX PAYMENT FORM

To make an electronic direct debit payment, write in the bank account information (a, b and c below), the taxpayer's name, the taxpayer's account number and the quarterly payment information for the quarter(s) to be paid. Then complete the payment amount, effective date for each payment to be withdrawn from your account and sign the form. You may provide information for payments to be withdrawn for one or more quarters. The individual payments will be withdrawn within five business days of the effective date entered. TAXPAYER'S NAME

a. Bank routing number: b. Bank account number: c. Bank account type:

Checking

Savings PAYMENT AMOUNT

First quarter payment due May 2, 2011

,

.

Second quarter payment due June 30, 2011

,

.

Third quarter payment due September 30, 2011

,

.

,

.

Fourth quarter payment due January 31, 2012

0 0 0 0

EFFECTIVE DATE FOR PAYMENT

0 0 0 0

Round cents to up to the next dollar

/

/

/

/

/

/

/

/

Date format: MM/DD/YYYY

TAXPAYER'S ACCOUNT NUMBER

Signature of taxpayer authorizing withdrawal from listed bank account

ELECTRONIC ESTIMATED INCOME TAX PAYMENT FORM

To make an electronic direct debit payment, write in the bank account information (a, b and c below), the taxpayer's name, the taxpayer's account number and the quarterly payment information for the quarter(s) to be paid. Then complete the payment amount, effective date for each payment to be withdrawn from your account and sign the form. You may provide information for payments to be withdrawn for one or more quarters. The individual payments will be withdrawn within five business days of the effective date entered. TAXPAYER'S NAME

a. Bank routing number: b. Bank account number: c. Bank account type:

Checking

Savings PAYMENT AMOUNT

EFFECTIVE DATE FOR PAYMENT

First quarter payment due May 2, 2011

,

.

0 0

/

/

Second quarter payment due June 30, 2011

,

.

0 0

/

/

Third quarter payment due September 30, 2011

,

.

0 0

/

/

,

.

0 0

/

/

Fourth quarter payment due January 31, 2012

Round cents to up to the next dollar

Date format: MM/DD/YYYY

TAXPAYER'S ACCOUNT NUMBER

Signature of taxpayer authorizing withdrawal from listed bank account