Kettering Business Income Tax Return General Information (Page 2 of 2) in pdf

Instructions for Completion of the Tax Return

Heading: If this return is made for a period other than the calendar year, insert the beginning and ending date of the period. Enter your

business name, address and account number, and Federal Identification Number, if you do not have a pre-printed form.

Line 1. Enter amount from Form 1120, Line 28; Form 1120A, Line 24; Form 1120S, Line 17e, Schedule K; Form 1065, Line 1, Page 4,

“Analysis of Net Income (Loss); Form 1041, Line 17; Form 990T, Line 30.

Line 2. Adjustments: combine items “not deductible” and items “not taxable” from Schedule X. Items not taxable must be included in

income to be deductible. If actual expenses attributable to intangible income cannot be determined, then 5% of the intangible

income reported on Line O, must be added back on Line B.

Line 3. Taxable income to Kettering before apportionment. Subtract or add line 2, as applicable from line 1 to determine taxable income.

Line 4. Apportionment Percentage: From Schedule Y. Used to determine the percentage of income conducted within and/or outside of

Kettering.

Line 5. Kettering Taxable Income: Line 3 multiplied by line 4.

Line 6. Enter the amount of Loss Carryforward (if applicable).

Line 7. Income subject to Kettering Tax: Line 5 minus Line 6.

Line 8. Tax Due: Multiply line 7 by 1.75% (.0175) to determine the amount of Kettering Income Tax.

Line 9a. Enter total estimated tax payments/extension payments, if any.

Line 9b. Enter amount of prior year credit, if any.

Line 9c. Totals of 9a and 9b.

Line 10. Balance due after credits. Subtract Line 9c from Line 8.

Line 11a. Add penalty (at the rate of 1½% per month or fraction thereof, or 10%, whichever is greater), if applicable.

Line 11b. Add interest (the rate is adjusted annually based on federal short-term rate +3%. Please call the Tax Division at (937) 296-2502 for

the current rate).

Line 12. Total due. Pay this amount and any estimated tax amount on Line 19 below, if applicable.

Line 13. Indicate amount of overpayment if Line 9c is greater than Line 8.

Line 14, 15. Indicate choice of disposition of overpayment.

Instructions for Declaration of Estimated Tax

Line 16. Enter estimated amount of income subject to tax and multiply by 1.75% (.0175).

Line 17. Prior year credit from Line 15 above.

Line 18. Subtract Line 17 from Line 16.

Line 19. Amount due with this return (A minimum of 22.5% of Line 18).

Line 20. Add amounts on Line 12 and Line 19. Make check payable to the City of Kettering.

Instructions for Schedule X

This schedule is used to adjust your federal net income to your Kettering taxable income. The left hand column is for items deductible on the

federal return, but not deductible under the Kettering ordinance. The right hand column is for items taxable on the federal return, but not taxable

by Kettering.

Instructions for Schedule Y

This form is used to determine the amount of income subject to Kettering income tax.

Instructions for Schedule Y-1

Use this schedule to reconcile salaries, wages, etc., apportioned to Kettering with total salaries, wages, etc., shown on Form KW-3 Withholding

Reconciliation.

Kettering Business Income Tax Return General Information Page 2