City of Lansing Income Tax: Filing and Requirements

The City of Lansing levies a local income tax on individuals, corporations, and other business entities that live, operate, or earn income within its defined boundaries. This tax provides funding for various municipal services that benefit the community. The administration of this tax is governed by the Michigan Uniform City Income Tax Ordinance.

Determining Your Filing Requirement

Your requirement to file a City of Lansing income tax return depends on your residency status and where your income is earned. The city defines specific criteria for residents, non-residents, and business entities, each with distinct tax rates and filing obligations. If your taxable income for the year exceeds the total value of your personal and dependency exemptions, you are required to file a return.

Residents

A resident is defined as an individual who is domiciled in the City of Lansing for the tax year. Domicile refers to your true, fixed, and permanent home. As a resident, you are subject to a 1% tax on all taxable income, regardless of where that income is earned. This includes wages from a job outside the city and income from rental properties located elsewhere.

Non-Residents

Non-residents are individuals who do not have their primary home within the City of Lansing’s limits. The filing requirement for a non-resident is triggered by earning income from work performed or services rendered inside the City of Lansing. Income subject to the tax for non-residents is taxed at a rate of 0.5%.

Businesses

Corporations, partnerships, and other business entities that conduct business activities within Lansing are required to file a city income tax return. This applies whether or not the business maintains a physical office or location within the city limits. The corporate income tax rate is 1%. Partnerships file an informational return, Form L-1065, and the income flows through to the individual partners who then pay the tax based on their own residency status.

Calculating Your Taxable Income

To file your City of Lansing tax return, you must first calculate your total taxable income. This process involves identifying all income sources subject to the city tax and then subtracting any exempt income. You can also reduce your taxable income by claiming personal and dependency exemptions.

Taxable Income

For residents, taxable income includes worldwide income from many sources. Common examples include:

• Wages, salaries, bonuses, and commissions
• Profit-sharing plan income
• Net profits from a business or profession
• Income from partnerships or trusts
• Rental income
• Lottery winnings
• Interest earned from bank accounts
• Early distributions from certain retirement plans

For non-residents, taxable income is limited to compensation for services performed within Lansing, net profits from a business conducted in Lansing, and gains from the sale of property located in the city.

Non-Taxable Income

Certain types of income are not subject to the Lansing income tax. These include:

• Social Security benefits
• Pensions and annuities
• Unemployment compensation
• Military pay for members of the armed forces
• Proceeds from insurance
• Gifts and inheritances
• Interest from U.S. government obligations

Exemptions

Taxpayers can reduce their taxable income by claiming exemptions. The City of Lansing allows a $600 exemption for the taxpayer, their spouse, and each qualifying dependent. The rules for determining who qualifies as a dependent follow the guidelines set by the Federal Internal Revenue Code.

Required Forms and Information

The primary form for individuals is the L-1040, the Individual Income Tax Return. If you anticipate owing more than $100 in tax that is not covered by withholding, you will also need Form L-1040ES to make quarterly estimated payments.

Information and Documentation Needed

Before you begin filling out your return, you should collect all necessary documentation. This includes:

• All W-2 forms from employers, which show your wages and any Lansing tax already withheld
• Any 1099 forms that report other types of income
• The first two pages of your federal Form 1040
• The Social Security numbers and birthdates of any dependents you are claiming

Completing the Forms

Wage information from your W-2s is entered on the appropriate line of Form L-1040, and you must attach copies of all W-2s showing Lansing withholding. You will calculate your total exemption amount by multiplying the number of exemptions by $600. Blank tax forms and the full instruction booklet can be downloaded from the City of Lansing’s official website.

Filing and Paying Your Taxes

After you have completed your tax forms, the final step is to file the return and pay any tax due. The City of Lansing provides multiple methods for submission and payment. Following these procedures helps ensure your return is processed correctly and avoids potential penalties.

Filing Deadlines

The annual deadline for filing your City of Lansing income tax return is April 30. If this date falls on a weekend or holiday, the deadline is extended to the next business day. For those required to make estimated tax payments using Form L-1040ES, payments are due in four quarterly installments on April 30, June 30, September 30, and January 31 of the following year.

Submission Methods

You can file your paper return by mail. The mailing address depends on whether you are due a refund or owe taxes. Returns claiming a refund should be mailed to Income Tax Department, P.O. Box 40750, Lansing, MI 48901, while returns with a tax due or zero balance go to P.O. Box 40752, Lansing, MI 48901. Payments can be made by check or money order payable to “CITY OF LANSING” or online through the city’s website.

Post-Filing Expectations

After filing, you should allow up to 45 days for the city to process your return. If you are expecting a refund, direct deposit is the fastest way to receive it. You should keep a complete copy of your filed tax return and all supporting documents for your personal records.