FORM RC LINE BY LINE INSTRUCTIONS - cityofcf.com

1 LINE 1 WAGES AND SALARIESThe following lists are not all-inclusive:LINE 2A BUSINESS income (Use Table B if you have profit/loss in multiple municipalities)All sole proprietorships must file on Form RC. Please provide copy ofSchedule 2B RENTAL OR SUPPLEMENTAL income (Use Table B if you have profit/loss in multiple municipalities)LINE 2C OTHER INCOMEP lease provide documentation or 2D LOSS CARRIED FORWARDNet operating losses may be carried forward for five (5) years. Noportion of a net operating loss shall be carried back against net profitsof a prior year. This applies to any business or rental income loss fromprior years. Please include a 3 TOTAL OTHER TAXABLE INCOMEAdd the amounts on lines 2a, 2b and 2c, subtract line 2d and enter thetotal on line 3. Amount cannot be less than 4 TOTAL TAXABLE income BEFORE DEDUCTIONSAdd the amounts on lines 1 and 3 and enter the total on line 5 DEDUCTIONSE nter the amount from line 31 on back of return.

2 Lines 28-30 on theback of the return list all of the possible 6 CUYAHOGA FALLS TAXABLE INCOMES ubtract from line 4 the amount of deductions on line 5 and enter online 7a + 7b CUYAHOGA FALLS TAX DUE BEFORE CREDITSM ultiply line 6 by .20% and enter on line 7a. Enter the tax due from LINE 8 REFUNDS RECEIVEDI nclude refunds received during tax year from other 9 CURRENT TAX DUEAdd lines 7 & 8, enter total on line 10 TAXES WITHHELD AND PAID TO CUYAHOGA FALLSE nter the total of column 2 from the W-2 worksheet table on back 11 TAXES WITHHELD AND PAID TO OTHER LOCALITIESE nter total of column 3 from W-2 worksheet table on back of Falls allows a tax credit for taxes withheld and/or paid toanother locality (including JEDD) up to but not more than THISAPPLIES TO EACH W-2 (or portion thereof) 12 estimated TAX PAYMENTSE nter the total amount of estimated income tax payments submitted tothe City for the current tax 13 CREDIT CARRIED FORWARD FROM PRIOR YEARThis is the overpayment currently credited to your account at the end ofthe prior tax 14 TOTAL CREDITSAdd the amounts on lines 10, 11, 12 and 13 and enter the total on line 15 OVERPAYMENTLINE 16 OVERPAYMENT CREDITED TO NEXT YEARLINE 17 AMOUNT TO BE REFUNDEDS ubtract line 16 from line 15 and enter on line 18 BALANCE DUE FOR CURRENT TAX YEARIf line 9 is greater than line 14, an amount is due to the City.

3 Subtractline 14 from line 9 and enter the tax you owe on line RC LINE BY LINE INSTRUCTIONS W-2 1099 MISC Salaries and wages Bonuses Commissions and fees Sick pay Qualified pension plans Employer supplementalunemployment benefits Lottery and gaming winnings Director fees Vacation pay Employee contributions toretirement plans Incentive payments Group term life insuranceover $50,000 Severance pay Compensation paid in theform of property Self employment wages reported on a W-2 Tips Stock options (may be reported in box 1) and not Medicare wages (box 5), but is still considered qualifying wages and must be included as taxable income Rents income from grazing, oil and gas rights Employee contributions to annuities Employee contributions to deferred compensation Depreciation recaptureTAXABLE INCOMETAXABLE FORMS 1099 R 1099 INT 1099 DIV Interest income Dividend income Welfare benefits Social Security benefits State unemployment Worker s compensation Insurance proceeds Cafeteria plans Alimony Military payNON-TAXABLE INCOMENON-TAXABLE FORMS Capital gains Annuity distributions IRA distributions Gov t allotments Precinct election official (up to $1,000) Intangible income Child support Retirement incomeInclude rental activity from properties located within the city.

4 Youshould also include activities from the back of Schedule E which would include income or loss from Partnerships, S Corporations, Estates and Trusts, and Real Estate Mortgage Investment Conduits (REMICs). Please provide a copy of Schedule line 14 is greater than line 9, you have overpaid. Subtract line 9 from line 14 and enter the amount of overpayment on line 15. Only amounts greater than $ can be credited to next years tax liability or an amount equal to or less than your entitled refund (line 15) youwish to have applied to next year s annual return. Also place thisamount on line 25. Only amounts greater than $ can be credited to next years tax liability or use the worksheet table on the back of the tax form and attach an entire copy of your federal income tax return and all W-2s and 1099s to the return. The tables below are designed to assist in determining items that should be reported as taxable to the City and items that should not be listed on your tax return.

5 Please use the highest dollar amount of gross wages on each 17 of Table B on line 19 PENALTY AND INTERESTIf you calculated penalty and interest on the back of the return, enter the amount from line 34 onto line 20 estimated INCOMEE nter your estimated income on line 21 estimated TAX DUEM ultiply line 20 by This amount will represent the estimated taxliability for the tax 22 TAXES TO BE WITHHELDE nter the amount of local tax to be withheld by your 23 estimated TAX DUE FOR TAX YEARS ubtract line 22 from line 21 and enter on line 23. This amountrepresents the amount of outstanding tax liability. If this amount is less than $200, estimated payments are not required and you mayproceed to line 27 and enter 24 FIRST PORTION OF estimated TAX OWED TO CITYM ultiply line 23 by 25% and enter on line 25 PRIOR CREDIT APPLIED TO estimated TAX PAYMENTSE nter amount from line 26 NET AMOUNT DUE FOR INITIAL QUARTERLY PAYMENTS ubtract line 25 from line 24 and enter the difference on line 26.

6 This amount represents the first quarterly estimated tax payment for the tax 27 TOTAL AMOUNT DUEAdd lines 18, 19 and 26 and enter total on line 27. This is the amountdue the City of Cuyahoga Falls. Make your check payable to the CITY OF CUYAHOGA 28 TAXPAYER UNDER AGE OF 18 All persons (resident or nonresident) under the age of 18 are exemptfrom taxation of wages earned in Cuyahoga Falls. The amount placedon line 29 should be all wages earned in the current tax year up to theindividual s 18th birthday. Any wages earned after your 18th birthday aretaxable. Please provide a final pay stub prior to the date the individual turned 18. LINE 29 NON-RESIDENT DEDUCTIONIf you prorate your income , you must also prorate your provide calculations. LINE 30 EMPLOYMENT EXPENSEE nter portion of Form 2106 expenses pertaining to income earned inCuyahoga Falls or earned in a locality with a tax rate of less than 2%.

7 If you deduct 2106 expenses from wages earned in any other localityyou must also reduce your income tax credited to that locality. Pleaseprovide copy of the Form 2106 and Schedule A. Expenses shown onForm 2106 are subject to audit by the income Tax 31 TOTAL DEDUCTIONSAdd the amounts on line 28, 29, 30, and enter the total on line 31 and on line 5 on the front of the 32A PENALTY: FAILURE TO FILE A TAX RETURNTAX RETURN CHECK LIST1. Did you sign your tax return?2. Did you use the highest amount of gross wages on W-2s?3. Did you enclose all supporting documentation?(W-2s, 1099s and your entire federal income tax return) 4. If you moved during the year, did you indicate your new address?5. If your balance due on line 15 was over $200, did you fill out thedeclaration of estimate?6. Did you attach proof of age if applicable?7. Did you sign and enclose your check or money order if anamount is due?

8 Please do notsend cash or RC LINE BY LINE INSTRUCTIONSE nter penalty if tax return is filed after April 17th. A penalty will be imposed even if no tax is due. A late filing penalty shall be imposed at the rate of $25 per month (or fraction of a month) that a return, other than an estimated income tax return, remains unfiled. This late filing penalty applies regardless of the liability on the return. The late filing penalty shall not exceed $150 for each failure to timely file. If filing a federal extension, please submit a copy on or before April 17th. Please remember that it is an extension of time to file and not an extension of time to 32B PENALT Y: FAILURE TO MAKE estimated PAYMENTSA penalty shall be imposed on unpaid income tax, including unpaid estimated income tax, equal to 15% of the amount not timely paid. LINE 32C PENALT Y: LATE PAYMENTA penalty shall be imposed on unpaid income tax equal to 15% of the amount not timely paid.

9 LINE 33 INTERESTI nterest shall be imposed on all unpaid income tax and unpaid estimated income tax. The interest rate to be applied each calendar year is the federal short-term rate, rounded to the nearest whole number percent, plus five percent (5%). The rate shall apply for the next calendar year following the July of the year in which the federal short-term rate is determined under Section 1274 of the Internal Revenue Year - Annual Interest Rate2018- 6%2017- 6%2016- 5 %LINE 34 TOTAL PENALTY AND INTERESTAdd the amounts on lines 32a, 32b, 32c and 33 and enter the total on line 34 and on line 19 on the front of the 2 Earned in Column 3 Earned in Column 4 Earned in Column 5 Earned in Column 6 Earned in Column 7 TotalsStow2%$20,000$10,000$30,000$40,000 $5,000$5,000$40,000-$30,000($20,000)($20 ,000)$20,000$20,000($15,000)$15,000$5,00 0$10,000($20,000)($20,000)$20,000$15,000 ($2,000)($4,000)($8,000)($6,000)$5,000$5 0,000$270$10,00020%30%40%10%$20,000$15,0 00$3,000$6,000$12,000$9,000$ $120$ $ $0$ $ $60$90$0$30, Tax Rate for Municipalities listed in Columns 2-62%Net Operating Loss (NOL) Carryforward from 2016aNet Operating Loss (NOL)

10 Carryforward from 2015bNet Operating Loss (NOL) Carryforward from 2014cNet Operating Loss (NOL) Carryforward from 2013dNet Operating Loss (NOL) Carryforward from 2012 Total Prior Year Net Operating Loss (NOL) for Cuyahoga Falls (total of row 1 a-d above)Federal Schedule C income (Loss)aFederal Schedule E income (Loss)bFederal Schedule E pg 2, K-1 income (Loss)cOther taxable non-wage income TOTAL income /LOSS: Add rows 3, a, b and c. Enter result year NOL (row 2) Enter as a negativeAdd rows 4 and 5. If row 6 is a positive amount enter all the postive amounts in row 7 and enter here**Percentage of total positive net profits (Divide each amount in row 7 by the total of all net profits in row 8) Current net (loss) totals (add the total of all losses contained on row 4)If (loss) contained on row 10 exceeds profit on row 8, SSTTOOPP and enter 0 on Page 1, Line 3 Allowable (loss) based on percentage calculation (multiply row 10 by row 9 percentages)Net profit after (loss) application (Take positive amounts in row 7 and subtract allowable loss-row 12)Multiply row 13 net profit by 2% Enter amount of taxes paid to other municipalities (Proof of taxes paid must be attached to return)If row 14 is greater than row 15 subtract and enter the difference here, if not enter -0-Tax due (add row 14 column 1 and row 16 column 2-6) place this amount on line 7b on the front of the tax returnName(s)