Employers address is Plymouth MI -I work in Pontiac. Plymouth has no city taxes- none were withheld. Pontiac has a city tax. Don't live in either. Am I required to pay?
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Employers address is Plymouth MI -I work in Pontiac. Plymouth has no city taxes- none were withheld. Pontiac has a city tax. Don't live in either. Am I required to pay?

 
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Intuit Alumni

Employers address is Plymouth MI -I work in Pontiac. Plymouth has no city taxes- none were withheld. Pontiac has a city tax. Don't live in either. Am I required to pay?

You may or may not need to pay – it depends on how much Pontiac City Income Tax Withholding you have on your W-2, and how much Pontiac City Income Tax you might be responsible for (if any).  I provide examples in the bolded text below, but first, here are the basic rules for Pontiac.

As a nonresident, you need to file a Pontiac return if your gross income subject to Pontiac tax exceeds your exemption amount.  Wages that nonresidents receive for work done in Pontiac are subject to the city’s income tax.

The “Exemptions” section on the third page of Instructions for Form P-1040 (NR), Individual Return and Instructions for Non-Residents, states

“A deduction of $600.00 is allowed for each personal and dependency exemption. An additional exemption is allowed for a taxpayer who is 65 years of age or older or who is blind as defined in section 206.504 of the Michigan Compiled Laws. If the taxpayer is both 65 years of age or older and blind, two (2) additional exemptions are allowed.

If you can claim a dependent on the Federal Tax Form, you may claim the dependent on the Pontiac Tax Form.”

So, for example, if you’re filing single and have no other dependents, you’d get one deduction of $600, and you’d need to file a return if your income earned in Pontiac was greater than $600.  If you were married filing a joint return and claimed a child as an exemption, you’d have three deductions of $600, and you’d need to file a return if your income earned in Pontiac was greater than $1,800.  And so on.

Bear in mind that, even if you’re not required to file a Pontiac return under these rules, you might want to file anyway, if your Pontiac city withholding is greater than the tax amount you’d owe, in which case you would receive a refund.

Pontiac nonresident instructions and forms may be found here

[Edited 4/1/2018 | 7:53 am] 





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