BEGINNING IN 2005
Personal Exemptions:
Effective tax year 2005, personal tax exemptions reduced from $750 to $600.
Non-Residents:
Non-residents who work less than 100% of their time within the City of Detroit are required to complete Schedule N on page 2 of the D-1040 (NR).
Effective tax year 2005, City of Detroit is requiring that non-resident taxpayers who allocate less than 100% of their income to provide the following documentation:
Letter from their employer to verify lines 1 and 2 of Schedule N. The letter should include the name, title and phone number of the person signing the letter and should be on the official letterhead of the employer, and
Documentation/work-log showing days/time worked in/out of the City of Detroit
Non-resident taxpayers based in Detroit who work in their homes cannot use those days as days worked outside Detroit. Regulation 13.2 of the City Income Tax Ordinance provides that: “The mere fact that a non-resident employee takes work home with him and performs such work at his home does not permit allocation of compensation”.
If no documentation is provided-employer letter and work log, the tax return will be returned requesting the missing documentation. This will result in delayed refunds.
City of Detroit Treasury P.O. Boxes:
This year there will be new P.O. boxes for each tax type. Please refer to the tax return for appropriate address.