Income Tax Guide for Individuals

1. Who Needs to File

You will need to file if you lived in the city during any part of the tax year and had taxable income. If you did not live in the city, but earned taxable income from within city limits you will also need to file.

For tax years beginning after December 31, 2009

  • If you are a single person or married filing separately and your income is greater than $600, you must file a return.
  • If you are married, filing jointly with your spouse and your income is greater than $1,200, you must file a return
  • If you are a single person and are age 65 or older and your income is greater than $1,200, you must file a return.
  • If you are married filing jointly with your spouse and both you and your spouse are age 65 or older and your income is greater than $2,400, you must file a return.

To see the other years, click here(PDF, 200KB).


Part Year Residents

Were you a resident for only part of the year with no taxable income from within city limits? If so, you will only need to report your income earned while you were a resident. You’ll use these worksheets to help you.


Schedule RZ

If you were a part year resident who is in a renaissance zone you’ll use these worksheets to help you. These worksheets are called Schedule RZ (renaissance zone). Make sure to choose the schedule RZ for the year you’re filing.

2. Rates

July 1, 2010 - Present Individual Tax Rate

Residents

1.5%

Nonresidents

0.75%


Prior to July 1, 2010 Individual Tax Rate

Residents

1.3%

Nonresidents

0.65%

3. Taxable Income

What is taxable income?

Residents

A resident is subject to tax on all items included in total federal income.

Taxable income includes

  • Salaries
  • Bonuses
  • Wages
  • Commissions
  • Fees
  • Vacation pay
  • Profit sharing plan income
  • Any other compensation regardless of where earned
  • Deferred compensation distributions
  • Fair market value of merchandise or services received as compensation
  • Net profit from a business
  • Net profit from a profession
  • Net profit of any other activity regardless of where earned
  • Income from a partnership
  • Income from a S corporation
  • Income from an estate or trust
  • Interest from bank accounts
  • Interest from credit unions
  • Interest from savings
  • Interest from loan associations
  • Interest from any other income regardless of where earned
  • Rental income
  • Capital gains
  • Dividends
  • Lottery winnings won after December 30, 1988

Nonresidents

A nonresident is subject to tax on all items included in total federal income. If the items are from or connected with Grand Rapids sources.

Taxable Income Includes

  • Salaries
  • Bonuses
  • Wages
  • Commissions
  • Fees
  • Vacation pay
  • Profit sharing plans
  • Any other compensation for services provided as an employee in city limits
  • Fair market value of merchandise or services received as compensation
  • Net profits from a business
  • Net profits form a profession
  • Net profits from any other activity conducted in city limits
  • Net profits from rental of real and tangible property located in city limits
  • Net profits from sale or exchange of personal property located in city limits

4. Nontaxable Income

What is nontaxable income?

Residents

The following types of income are nontaxable to residents

  • Gifts
  • Inheritances
  • Bequests
  • Distributions of principal from estates and trusts
  • Proceeds from insurance
  • Proceeds from pensions
  • Proceeds from annuities
  • Proceeds from retirement benefits
  • Proceeds from Social Security even if taxable under the Internal Revenue Code
  • Unemployment compensation
  • Supplemental unemployment benefits
  • Welfare relief payments
  • Workers compensation
  • Interest from U. S. obligations such as Savings Bonds and Treasury Notes
  • Interest from obligations of the states
  • Interest from subordinate units of government of the states
  • Compensation for service in the U. S. armed forces, including reserve components


Nonresidents

The following items are nontaxable to nonresidents

  • Gifts
  • Inheritances
  • Bequests
  • Distributions of principal from estates and trusts
  • Proceeds from insurance
  • Proceeds from pensions
  • Proceeds from annuities
  • Proceeds from retirement benefits
  • Proceeds from Social Security even if taxable under the Internal Revenue Code
  • Unemployment compensation
  • Supplemental unemployment benefits
  • Welfare relief payments
  • Workers compensation
  • Interest from U. S. obligations such as Savings Bonds and Treasury Notes
  • Interest from obligations of the states
  • Interest from subordinate units of government of the states
  • Compensation for service in the U. S. armed forces, including reserve components
  • Interest
  • Dividends
  • Royalty income
  • Income from trusts and estates
  • Qualified deferred compensation reported on a Form 1099-R

5. Deductions

What are qualifying deductions when filing?

Expenses Incurred as an Employee

The following expenses incurred as an employee are allowable subtractions. A part of expenses is allowable to nonresidents to the extent they apply to income taxed by Grand Rapids.

  • Travel
  • Meals and lodging while away from home
  • Expenses as an outside salesperson. This would be a person that works away from their employer's place of business. Note - this does not include one whose primary duty is delivery.
  • Transportation (but not transportation to and from work)
  • Expenses reimbursed under an expense account
  • Any other arrangement made with your employer where your gross income includes reimbursement


Other Allowable Deductions

  • Alimony paid, to the extent deductible under the Internal Revenue Code. Nonresidents will need to prorate the deduction. They will prorate based upon the ratio of Grand Rapids income to total income. Child support is not deductible.
  • Individual Retirement Account deduction to the extent allowed under the Internal Revenue Code. Nonresidents will need to prorate the deduction. They will prorate based upon the ratio of each taxpayer's earned income in Grand Rapid to each taxpayer's earned income everywhere.
  • Renaissance Zone deduction
  • Moving expenses into the area only

6. File Your Return Online

File Online

There are many ways to file your return. You can print the forms here. You will just need to fill them out and mail them in. Need help? You can also come in person and we can process your return for you. We now have a new EZ resident form.  This new form is through a third party site.  It allows you to file online. This form can only be used by residents.

File Online


Upload Electronic Return

If you used Turbo Tax or another Electronic Program that does not e-file you can upload your file here.

Upload Return

7. Printable Tax forms

GR-1040 Forms

Below are the printable GR-1040 forms. Each PDF has detailed instructions on how to complete the form:


Part Year Residents

Were you a resident for only part of the year with no taxable income from within city limits? If so, you will only need to report your income earned while you were a resident. You’ll use these worksheets to help you.


Schedule RZ

If you were a part year resident who is in a renaissance zone you’ll use these worksheets to help you. These worksheets are called Schedule RZ (renaissance zone). Make sure to choose the schedule RZ for the year you’re filing.


Make Changes to Your Return

Did you already file and need to make a correction? You can use this form to do that.

1040 Amended(PDF, 146KB)

8. Mail Your Return

When you've completed your return, mail it to the address below.

Mailing Address

Grand Rapids Income Tax
PO Box 347
Grand Rapids, MI 49501


Drop Off Address

If you’d like to come in person, visit our office at City Hall.

City Hall
300 Monroe Ave NW
Third Floor
Grand Rapids, MI 49503

9. Due Dates and Extensions

April 30 Deadline

City tax returns are due April 30 every year.

Keep in mind if you file and pay late there are penalty fees charged. Late fees are one percent per month up to 25% of the tax due. Interest is also due at the annual rate of 1 percent above the current prime rate. The interest rate is adjusted on January 1 and July 1 of each year. If the computed penalty and interest amount is less than $2.00, the smallest late charge is $2.00.


Quarterly Estimated Payments

You may need to make quarterly estimated payments.

If you expect to owe more than $100 you will need to make quarterly payments. You'll make four payments per tax year. The first three payments are made during the same year. The fourth will be the year after. These payments are due on or before April 30, June 30, September 30, and January 31.


Electronic Funds Transfer Forms

To make these payments by EFT (electronic funds transfer) you will use these forms.

Pay by Check

If you prefer to pay your estimated payments by check, give us a call 616-456-3415.  We can send you a customized booklet that you'll need to submit with your check.


For Fiscal Year Taxpayers

Payments are due the last day of the fourth, sixth and ninth month of the fiscal year. The final payment is made at the end of the thirteenth month following the beginning of the fiscal year.

10. Request an Extension

What is an Extension?

An extension is not a request for more time to pay tax due. It is an extension on filing your return. The Administrator may extend the filing date for up to six months or for the same period granted by a federal extension.


Requesting an Extension

You'll need to make your request in writing by using the Extension Application(PDF, 24KB). You'll also need to submit payment adequate to cover the unpaid part of your annual liability.

Make sure you submit this form and your payment on or before the due date. You'll want to make sure you have everything you need. Please note if everything is not included we cannot process your request.


When Not to File an Extension

If you don't owe taxes or are expecting a refund, do not file an extension.

11. Amend Your Return

Did you already file and need to make a correction? You can use this form to do that.

1040 Amended(PDF, 146KB)

12. Payment Options

Pay your income tax bill the way that works best for you! You can submit your payment online, in the mail, over the phone, or in person. Explore your income tax payment options here.

Make a Payment

13. Ask Us Questions

Still have questions? You can email any questions to gr1040tax@grcity.us.