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CITY OF HAMTRAMCK INCOME TAX
PARTNERSHIP RETURN
Instructions for Form H-1065
FILING DATE:
Calendar year taxpayers must file by April 30 each year.
Fiscal year taxpayers must file within four (4) months after end If the partnership elects to pay the tax on behalf of the
of their fiscal year. partners thereof, then such election and payments shall be
deemed to meet the requirements for the filing of a return, as
REMITTANCE: provided by the Ordinance, for each partner who has no other
Partnerships electing to pay the tax for partners must remit income subject to the tax. However, an individual return shall
for all partners when filing return. The tax due must be paid be required from any partner having taxable income other
when filing the return. Make remittance payable to: than his distributive share of the net profits of the partnership.
In such instances, the partner should enter as “Additions to
CITY OF HAMTRAMCK Income” on his individual return Form H-1040, Line 2 the
amount shown on the partnership return on page 1, column 1.
MAILING ADDRESS: The deductions shown in column 2 and the credit in column 5
CITY OF HAMTRAMCK paid on his behalf by the partnership should also be listed in his
Partnership Return individual return, page 1, Lines 5 and 10 respectively, Attach a
P.O. Box 209 copy of the H-1065 to your Individual H-1040 Return,
Eaton Rapids, MI 48827
Partnership as Taxpayer
Who Must File a Partnership Return If the partnership elects to pay the tax on behalf of the
(Form H-1065) partners then it assumes the status of a taxpayer to the following
Every partnership that conducts business activities in the extent:
City of Hamtramck, whether or not an office or place of business 1. Timely payment. Payment must be made within four (4)
was maintained in the City, is required to file an annual return months from the end of the fiscal year or period, other-wise
within (4) months following the end of their taxable year. it will be subject to interest and penalties the same as a
If on a calendar year basis, the return must be filed by April delinquent payment from any other taxpayer.
30th. Syndicates joint ventures, pools and like organizations 2. Payment of estimated tax. The election of the partnership
will also use Form H-1065. So called tax options” (under Sec. to pay the tax on behalf of the individual partners also carries
13711377, Internal Revenue Code, Subchapter S Corporations with it the requirements to file a Declaration of Estimated
included) must file as corporations on Form H- 1120. Income Tax, Form H-1040-ES, if the total estimated tax
for the partnership is expected to exceed $40, and to pay
Residents vs. Non-Resident Partners such tax. If the partnership so files and makes payments,
Partners who are residents of Hamtramck are taxed on their the partners will not be required to file a Declaration as
entire distributive shares on the net profits of the partnership, individuals, unless they have additional income (from
including that arising from business activities outside the which Hamtramck income tax was not withheld) on which
city, and including interest, dividends, rents and royalties and the Hamtramck tax is expected to exceed $40. The fiscal
gains from the sale or exchange of property, either tangible or year of the partnership will govern in establishing the dates
intangible. for filing the declaration and paying the estimated tax.
Partners who are non-residents of Hamtramck are taxed on
their distributive shares on the portion of the net profits which Income: Instructions for Page I
is attributable to business activity in the City, plus net rentals of Column 1. Fill out schedules on Page 2 first and
property in the City and gains from the sale or exchange of real transfer amounts in Column 5, Schedule D to this column.
or tangible personal property in the City. They are not taxed List amounts in same order as partners are listed in top
on their share of net rentals on property outside the City, gains section.
from the sale or exchange of real or tangible property outside Exemptions. Column 2. Exemptions are allowed for
the City, gains from the sale or exchange of securities or other each partner and his or her dependents. An exemption of
intangible property, or interest or dividends. $600 is allowed for the partner, the partner’s spouse, and each
The Partnership Return Form H-1065, is designed to dependent. In general, the same rules apply in deter-mining
distinguish between that income taxed to both residents and dependents as under the Federal Internal Revenue Code. A
non-residents, and that taxed to residents only. spouse may be taken as an exemption on the partnership
The return set forth the entire net profit for the period covered return only if each spouse had no income subject to the
and shows the distributive share of each partner, indicating those Hamtramck income tax. Additional exemptions are allowed if
who are residents of Hamtramck, and those who are non- the partner or his spouse is 65 or over, or is blind.
residents. If residency changes during the taxable period for Credits, Column 5. Enter in this column payments
any partner, use two lines to indicate allocation of income by made by the partnership for tax paid with a tentative return;
status in all schedules where applicable, based on the pro-ration or any payments and credits made by the partnership on
of time in each status. behalf of Hamtramck resident partners for income taxes to
any other municipality, if the income on which such tax was
Option to Pay Tax levied is included in the return. Do not take credit for income
At its election, the partnership may file either an information taxes paid to another municipality on behalf of partners
return or it may compute and pay the tax which is due with who are not Hamtramck residents. The credit shall be the
respect to each partner’s share of the net profit of the business, lesser amount of either (1) the income tax paid the other
after giving effect to exemption and other items to which each municipality, or (2) the amount of tax that would be due to
partner is entitled. Such option is available to all partnerships the City of Hamtramck on earnings in the other municipality
regardless of the residency of the partners. The partnership may and cannot exceed 1/2 of 1% of the amount that would be
pay the tax for partners only if it pays for all partners subject taxable by the City of Hamtramck.
to tax.
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