Fillable Form Ir - Exemption Certificate - 2005 (Page 3 of 3) in pdf

WORKSHEET INSTRUCTIONS FOR FORM IR

WORKSHEET A: W-2 & 1099-MISC

(Taxable Wages)

Line 3.

For non-Akron residents, total all income (profits & losses)

Complete WORKSHEET A with employment “from and to” dates,

that are allocated 100% to Akron, which you have reported on

employer name, and locality where you were employed. Next,

federal Schedule C – Line 31, Schedule C-EZ – Line 3, Schedule E –

using your W-2s complete Columns 1, 2 and 3. For the Gross

Line 22, or Schedule F – Line 36.

Income figure enter the largest number on your W-2 into Column 1.

For most filers the Local Wage figure in Box 18 of their W-2 will

Line 4.

For non-Akron residents who must allocate profits or

equal the Medicare Wage reported in Box 5. Be sure to separate

losses, enter the amount from WORKSHEET C, Line 6.

the taxes withheld for Akron and for other municipalities or JEDDs.

Line 5.

Total Lines 1 & 2 if an Akron resident or Lines 3 & 4 if

Also, if you received a 1099-MISC that is not reflected in

a non-Akron resident, using care to add positive and subtract

WORKSHEET B, or if you had Lottery winnings or supplemental

negative numbers.

unemployment payments (SUB-PAY) from a company or union

•

If Line 5 is greater than zero, which represents a profit,

plan, these must be listed in WORKSHEET A. DO NOT INCLUDE

enter it on Line 2 of Form IR, Page 1.

1099s FOR INTEREST, DIVIDENDS, ONGOING RETIREMENT

•

If Line 5 is less than zero, which represents a (loss) enter it

PENSION PAYMENTS OR PAYMENTS FOR TOTAL DISABILITY.

in the 2005 column of WORKSHEET F.

Finally, total Columns 1, 2 and 3 and move the results to Form IR,

Page 1, Lines 1, 7 and 8 respectively.

WORKSHEET C: BUSINESS ALLOCATION 3 – FACTOR

FORMULA (USED ONLY BY NON-AKRON RESIDENTS)

WORKSHEET B: BUSINESS NET PROFIT CALCULATION

(Attach copies of Federal Tax Return & Schedules)

A non-Akron resident who has a business that derives income

from locations both inside and outside the corporate boundaries

This worksheet is used by individuals who have self-employment or

of Akron, must allocate his total net income (or loss) as to the

rental income, to arrive at the proper net profit or loss figures as

portion attributable to Akron and the portion attributable

required by Akron’s Income Tax Ordinance. When there is a loss

elsewhere. WORKSHEET C must be used to arrive at these

to be reported on WORKSHEET B, place the number in brackets to

numbers. Note: To obtain the correct average, divide the total

denote a negative figure.

of the percentages only by the number of percentages used.

FOR AKRON RESIDENTS:

The business activity of an Akron

Enter the result on WORKSHEET B, Line 4.

resident is taxable in its entirety to Akron. Credit is given for taxes

WORKSHEET D: BUSINESS LOSS CALCULATOR (USED

paid to another city or JEDD, up to 2.25%, and should be included

ONLY BY AKRON RESIDENTS)

in column 3 of Worksheet A.

Copies of the other city tax returns

must be attached to receive this credit.

If an Akron resident’s

Akron residents who have business losses from activity in

business is located outside the city but within the taxing jurisdiction

another taxing jurisdiction may be able to deduct some of the

of another municipality or JEDD, he must use Worksheet D to

loss for Akron income tax purposes.

Carefully complete

calculate an allowable loss deduction. Business losses cannot be

WORKSHEET D, following the Step by Step instructions, and

used to offset wage income.

Complete Lines 1, 2, & 5 of

move any allowable deduction to WORKSHEET B, Line 2.

WORKSHEET B

using the results of other worksheets, where

WORKSHEET E: 2106 BUSINESS EXPENSE DEDUCTIONS

applicable.

The 2106 deduction must be reduced by the 2% adjustment

Line 1.

An Akron resident must add ALL NET PROFITS reported

found on federal Schedule A. To receive this deduction you

on federal Schedule C – Line 31, Schedule C-EZ –

Line 3,

must attach a copy of pages 1 & 2 from your federal 1040 tax

Schedule E – Line 22, or Schedule F – Line 36, and subtract only

return, Schedule A and 2106. The Income Tax Division reserves

those losses from business activity located 100% in Akron.

the right to make adjustments to deductions claimed. Enter this

Line 2.

An Akron resident who has a loss on a business or rental

amount on Line 4 of Form IR, Page 1.

property that is outside the City of Akron, and within another taxing

WORKSHEET F: LOSS CARRYFORWARD CALCULATION

jurisdiction, should enter here, the total “Allowable Deduction”

(There is a 3-year limit for Akron tax returns)

amount from WORKSHEET D.

If you have unused, qualified, loss carryforward amounts from

FOR NON-AKRON RESIDENTS: If the business activity of a non-

tax years 2002, 2003 or 2004, enter these in the first row of

Akron resident is both inside and outside the City of Akron,

WORKSHEET F. If you wish to use all or a portion of these loss

WORKSHEET C, the Business Allocation 3-Factor Formula must

carryforward amounts against a profit in 2005, write the amount

be used. Complete Lines 3, 4 & 5 of WORKSHEET B using the

being used from each prior year, up to the total being used, and

results of other worksheets, where applicable.

enter the result on Line 3 of Form IR, Page 1.

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DETACH HERE

OFFICE USE ONLY

Income Tax Division

I Cascade Plaza - 11

Floor Akron, Ohio

TAX YR

2005

VISA / MASTERCARD PAYMENT AUTHORIZATION

Please charge my VISA or Mastercard, to pay my Akron Income Tax liability, as shown in

VISA

Mastercard

the box below, for tax year 2005

(CHECK ONE)

________________________________

__________________

_____________

PRINT TAXPAYER NAME

SOCIAL SECURITY NUMBER

AKRON TAX ACCT #

VISA

MASTERCARD

ACCOUNT NUMBER

EXP. DATE

__________________________

PRINT NAME AS IT APPEARS ON

THE CARD

MO.

YR.

________________________________

____/____/____

Authorized

CARDHOLDER SIGNATURE

DATE

Payment

_____________________

NOTE: THIS VOUCHER IS TO BE USED ONLY WHEN MAKING BANKCARD PAYMENTS WITH PAPER TAX RETURNS. E - FILERS (THOSE WHO FILE

OVER THE INTERNET) ONLY NEED TO COMPLETE THE ON-LINE PAYMENT AUTHORIZATION TO MAKE BANKCARD PAYMENTS.

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Form Ir - Exemption Certificate - 2005 Page 3

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