HU-1040                                                 HUDSON INDIVIDUAL                                                         For the year                                                                                 CITY OF HUDSON                              2
                                                      INCOME TAX RETURN                                           January 1 - December 2                                                                           INCOME TAX DIVISION
                                         Or Other Taxable Year beginning                                                                                 , 2                               , Ending                                                                  , 2
                                                                    First Name and Initial                                          Last Name                                                                                             Your Social Security Number
                                     DID YOU FILE A HUDSON
                                        RETURN LAST YEAR?           and(If JointInitialReturn,of Spouse)First Name                                                                                                                        Spouse's Social Security Number
                                         YES    NO
                                         If no, explain:            Home Address (Number and Street or rural route)                                                                                                                       Your Occupation

                                                                    City, Town or Post Office and State                                                                                                  Zip                              Spouse's Occupation

                                                                    EXEMPTIONS                                    Regular         65 or over             Blind                       Dependent Children, other: (List names)                                         TOTAL
                                     IF YES, IS THE NAME(S), FILING                              Yourself                                                                                                                                                          EXEMPTIONS
STATUS AND ADDRESS IDENTICAL                                                                                                                                                                                                                                       per Federal
                                                                                                                                                                                                                                                                     Return
                                     TO PREVIOUS YEAR RETURN?       1.                           Spouse
                                         YES    NO                  2. Your Filing Status - check only one:                                                                          Resident (full year)                                           Non-Resident (full year)
                                         If no, explain:                               Single                                                                                        Part-Year Resident (see Schedule B)
                                                                                       Married filing joint return                                                     Lived in Hudson during past year
                                                                                       Married filing separately.                                                      From                                                               To
                                                                                                                                                                       Former Address
INCOME - (If joint return, include all income of both husband and wife)                                                                                                                             TOTAL WAGES                                     REPORT DOLLARS AND CENTS
1. Enter GROSS income from employers for wages, salaries, commissions, tips, sick                                                                                        REPORTED ON W-2 OR 1099                                                             DO NOT ROUND OFF
                                     pay etc. (DO NOT INCLUDE S.U.B. [Supplemental Unemployment Benefit] PAY)
                                     Employer's Name                Address at Major Work Site                                                                                           DOLLARS                                          CENTS           Should we have any questions,
                                                                                                                                                                                                                                                    please provide a phone number.

                                                                                                                                                                                                                       TOTALS                    1.
                                     2A. Dividend and interest income per Federal Return: [Residents Only]  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                  2A.
                                     2B. Additions  to Income from page 2, PART 1, line 9  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                               2B.
                                     3.  Total Income - [Add lines 1, 2A and 2B]  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  3.
                                     4A. Subtractions  from Income from page 2, PART 2, line 4  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                      4A.
                                     4B. Subtractions   for IRA [Individual Retirement Account]  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                 4B.
                                     5.  Adjusted Income - [line 3 less lines 4A and 4B]  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          5.
                                     6.  EXEMPTIONS:  Multiply the number of exemptions claimed by $1,000.00                                                  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            6.
                                     7.  Income subject to tax - [line 5 less line 6] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                7.
                                     8.  TAX - Multiply amount on line 7 by one of the following:
                                             A. RESIDENT ONLY - 1% [.01]  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                             B. NON-RESIDENT ONLY - 1/2% [.005]                   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(Report. . . . . . .Dollars. . . . . .and. . .Cents). . . . . . . . . . . .       8.
                                             C. PART-YEAR RESIDENT - Tax from Schedule B, Line 10                                          . . . . . . . . . . . . . .(Do. . . .Not. . .Round. . . . . .Off). . . . . . . . . . .
                                     PAYMENTS AND TAX CREDITS                                                                                                                                                                                             MAKE CHECKS
ATTACH CITY COPY OF W-2 OR 1099 HERE 9.  Hudson Tax Withheld [attach copy of W-2 showing city tax withheld]  . . . . . . . . . . . . . . . . . . . . . .      9.                                                                                          PAYABLE TO
                                     10. Current year estimated payments [including credit from prior year overpayment]  . . . . . . . . . . . . .            10.                                                                                         TREASURER
                                     11. Credits for income tax paid to another MI municipality or by a partnership  . . . . . . . . . . . . . . . . . . . .  11.                                                                                         CITY OF HUDSON
                                     TAX DUE OR REFUND
                                     12. Total Payments and Credits - (Add Lines 9, 10 and 11)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                12.
                                     13. If line 8 is larger than line 12 enter BALANCE DUE  . . . . . . . . . . . . . . . . . . . . . . . .                     PAY IN FULL WITH RETURN                                                         13.
                                     14. If line 12 is larger than line 8 enter OVERPAYMENT  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                             14.
                                     14A. Amount to be credited to next years Estimated Tax  . . . . . . . . . . . . . . . . . . . .                          14A.
                                     14B. Amount to be refunded (less than one dollar [$1.00] not refunded)                                                   14B.
                                     This return is due April 30th, or on the last day of the fourth month after the close of your tax year.
                                     Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements and to the best of my knowledge and belief it is
                                     true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

                                     Sign
HERE                                     Your Signature                                                             Date                                  Signature of preparer other than taxpayer                                                                  Date
                                     here
SIGN                                     Spouse's signature (if filing jointly BOTH must sign even if only one had income)                                                                                                                Address
                                     Mail Return To: City of Hudson, Income Tax Division, P.O. Box 231, Hudson, Michigan 49247                                                                                                                                                PAGE 1

                                       PART 1 - ADDITIONS (SEE INSTRUCTIONS FOR PART 1)

PROFIT (OR LOSS) FROM BUSINESS OR PROFESSION

1. Net profit [or loss] from business or profession - attach Federal Schedule  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                          1.$

2. Less: Net operating loss carry over  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 2.

3. Less: Self-Employment Retirement Deduction  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                3.

4. Total - [line 1 less lines 2 and 3] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          4.

SALES AND EXCHANGES OF PROPERTY

5. a. Net income [or loss] from sale or exchange of property - attach Federal Schedule . . . . . . . . . . . . . . . . $

b.    Portion of gain [or loss] on line 5a which occurred after January 1, 1971 [attach detail - see Instructions]      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                   5b.

RENTS AND ROYALTIES:

6. Net income [or loss] from rents and royalties - attach detail from your Federal Income Tax Return                     . . . . . . . . . . . . . . . . . . .                                                                  6.

OTHER INCOME

7. Other net income [or loss] from partnerships, estates, trusts, etc. - attach Federal Schedule
      Received From                            Kind of Income                                                           AMOUNT

a.                                                                                                                     $

b.

c.    Total of lines 7a and 7b - enter in last column  . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                                                  7c.

8. Distributions from a tax-option corporation  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       8.

9. TOTAL OF PART 1 - [add lines 4, 5b, 6, 7c, and 8] - enter here and on Page 1, line 2B                                 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                            9.

                                       PART 2 - SUBTRACTIONS (See Instructions for PART 2)

DEDUCTIONS ALLOWED ON HUDSON RETURN

You must attach a copy of your Federal Form to support entries on lines 1 thru line 4

1. Employee Business Expenses - attach Federal Form  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                          1.$

2. Moving Expenses - [Into City only] - attach Federal Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                         2.

3. Other (please identify)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Total Subtractions - [Add lines 1, 2, and 3] - enter here and on Page 1, line 4A  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                              4.

                           PART-YEAR RESIDENTS - Be sure to fill out Schedule B and include it with your return
      ALL TAXPAYERS - PLEASE BE SURE TO ATTACH ALL W-2's and 1099's AS WELL AS ALL SCHEDULES AS INDICATED

                                                                                                                                                                                                                                   PAGE 2

   SCHEDULE A - COMPUTATION OF WAGES EARNED IN HUDSON - DO NOT USE THIS SCHEDULE
                                         IF ALL OF YOUR WORK IS PERFORMED IN HUDSON
This schedule applies to Non-Residents only, and must be accompanied by a statement from your employer. Where both Husband and Wife have
income subject to allocation figure them separately. Also a separate computation must be made for each job performed both in and out of the City.

                                         (See instructions for definition of "days worked" and for computation of percentage)
                                                                                                                                                                                    Job # 1            Job # 2
1. Actual number of days worked on job (do not include week-ends you did not work,
   vacation days, sick days, etc.)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                          days

2. Actual number of days worked on job in Hudson    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                    days

3. Percentage of days worked in Hudson to total (line 2 divided by line 1)  . . . . . . . . . . . . . . . .                                                                                                            %
4. Wages shown on W-2 or 1099
   (see note below) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $                   $
5. Wages earned in Hudson during taxable period (line 4 multiplied by percentage on line 3)
   - Enter here & on line 1 page 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              $                   $
                                   NOTE: Those keeping separate records of Hudson earnings, so indicate on line 5
                                   INSTRUCTIONS: NON-RESIDENTS WHO PERFORMED ONLY PART OF THEIR SERVICES IN HUDSON
Non-residents who performed only part of their services in Hudson must fill in a Schedule A. Line 1 of Schedule A refers to the actual number of days you were on the job
everywhere during the year. You are not considered to be on the job when there is a holiday, when you are sick or when on vacation. Example - a construction worker worked
160 days in Hudson and 80 days out of Hudson or a total of 240 working days. In the above example he would show on Line 2 "160" days as the actual number of days worked in
Hudson. Then, by dividing the figure on Line 2 (160) by the figure on Line 1 (240) he would find the percent of time worked in Hudson to be entered on Line 3. On Line 4 enter the
total of your earnings everywhere for the year. Multiplying Line 4 by Line 3 will then provide the figure to be entered on Line 5 and carried forward to Line 1 on Form HU-1040.
For each job site listed on Schedule A, enter on Line 1 of the tax return the employer's name, address, and wages subject to Hudson tax from Line 5 of Schedule A.
NOTE!! - Instead of using "days worked" employees paid on a commission basis should multiply their total wages by the ratio of commissions earned in Hudson to total
commission earned. Those who cannot arrive at a percentage of income earned in Hudson based on "days worked" may substitute "hours" for "days" in Schedule A
computation - as long as the percentage arrived at results in an equitable allocation and apportionment of the taxpayer's taxable income. Those individuals keeping separate
records of actual Hudson earnings should so indicate on Line 5 of Schedule A.
                     SCHEDULE B - COMPUTATION OF WAGES FOR PART - YEAR RESIDENTS
                                   This schedule applies only if you had taxable income during the year both as a Resident and Non-Resident.
                                                                                                                                                                                    COLUMN 1           COLUMN 2*
                                                                                                                                                                                  ALL INCOME WHILE     PORTION OF INCOME
                                                                                                                                                                                  A HUDSON RESIDENT    EARNED IN HUDSON
                                                                                                                                                                                                       WHILE A NON-RESIDENT
1. Gross Wages - (Attach W-2)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      1.
2. Additions - (see applicable instructions for PART 1 and attach Federal Schedules)                                                          2.
3. Total - (Add lines 1 and 2)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Subtractions (see applicable instructions for PART 2 and attach Federal Schedules)                                                         4.
5. Total Income Both Columns - (line 3 less line 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                             5.
6. Exemptions - Multiply number of exemptions claimed by $1,000.00, enter in
   Column 1. (If more than line 5, carry excess to Column 2)  . . . . . . . . . . . . . . . . . . . . . . . . . .                             6.
7. Taxable Income - (line 5 less line 6)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             7.
8. Tax - Resident Income - Multiply line 7, Column 1 by 1% (.01) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                             8.
9. Tax - Non-Resident Income - Multiply line 7, Column 2 by 1/2% (.005)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                       9.
10. TOTAL TAX - (Add lines 8 and 9 and enter on Page 1, line 8)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           10.
*NOTE: Deductions are limited to the amount taken on your Federal Return and to the same percent that your Hudson taxable income bears to your total income. For example: if
80% of your income is earned in Hudson as a non-resident, then only 80% of allowable expenses are deductible. (Attach Federal Schedule)

RESIDENT FROM:                     to
(PLEASE ENTER DATES)

PREVIOUS ADDRESS WAS:

SCHEDULE C - BUSINESS ALLOCATION FORMULA
                                                                                                                                     Located               Located in                                          Percentage
                                                                                                                                     everywhere            Hudson                                              II ÷ I
                                                                                                                                     I                     II
1. Average net book value of real and tangible personal property                   . . . . . . . . . . . . . . .   $                                      $
   a. Gross annual rentals of real & tangible personal prop. multiplied by 8  . . . .
   b. TOTAL (Add lines 1 and 1a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                                         %
2. Total wages, salaries, commissions & other compensation of all employees  . . .                                                                                                                                       %
3. Gross receipts from sales made or services rendered  . . . . . . . . . . . . . . . . . . . . . .                                                                                                                      %

4. Total Percentages - add the three percentages computed for lines 1b, 2 and 3 which you entered in the last column (you must compute a
   percentage for each of lines 1b, 2 and 3)

5. Average percentage (one-third of line 4, see note below) - enter here and on line 6.                                                                                                                                  %

6. Average percentage (line 5)  . . . . . . . . . . . . . . . . . . . . . . . . . % x net profit per Federal Form 1040 Schedule C.              $  . . . . . . . . . . . . . . . . . . . . . . . . . . . . = $  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
   Carry to line 1, PART 1 on Page 2 (Profit or loss from Business or Profession)

      NOTE:    In determining the average percentage (line 5), a factor shall be excluded from the computation only when such factor does
               not exist anywhere insofar as the taxpayer's business operation is concerned and, in such cases, the sum of the percentages
               on line 4 shall be divided by the number of factors actually used.

In the case of a taxpayer authorized by the Administrator to use one of the special formulae, use the lines provided below.
a. Numerator    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c. Percentage (a ÷ b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b. Denominator  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     d. Date of Administrator's approval letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE C - INSTRUCTIONS FOR BUSINESS ALLOCATION FORMULA

   The business allocation percentage formula is to be used by non-resident                                                            Line 1a. Enter in Column 1 the gross annual rentals multiplied by 8 for all
owners of businesses with business activity both within and without the City of                                                      rented real property regardless of location. In Column 2 show the gross annual
Hudson unless permission has been granted by the Income Tax Division to use                                                          rentals multiplied by 8 for all rented real property located in the City of Hudson.
another method.

   Line 1. Enter in Column 1 the average net book value of all real and tangible                                                       Line 2. Enter in Column 1 the total compensation paid to all employees during
personal property owned by the business, regardless of location; and in Column                                                       the year and in Column 2 show the amount of compensation paid to employees for
2 show the net book value of the real and tangible personal property located in the                                                  work done or for services performed within the City of Hudson during the year.
City of Hudson. The average net book value of real and tangible personal property
may be determined by adding the net book values at the beginning of the year and                                                       Line 3. Enter in Column 1 the total gross receipts from all sales or services
the net book values at the end of the year and dividing the sum thus obtained by                                                     rendered during the year and in Column 2 show the amount of receipts derived
two. Any other method which will accurately reflect the average net book value                                                       from sales made or services rendered in the City of Hudson during the year.
for the year will also be permitted.