Note: This article applies to TaxSlayer Pro for tax years prior to 2020.
Creating a City of Port Huron Income Tax Return
To access the City of Port Huron Individual Income Tax Return in TaxSlayer Pro, from the Main Menu of the Michigan return select:
- MI Miscellaneous Forms
- MI City Taxes
- City of Port Huron
Select New and select what type of return to create.
- Resident - The taxpayer was domiciled in the city for the entire year. Part-year residents can also file a resident return if they had no income subject to city tax while a nonresident.
- Nonresident - The taxpayer was domiciled outside the city for the entire year but earned income in the city. Part-year residents can also file a nonresident return if they had no income subject to city tax while a resident.
- Part-Year Resident - The taxpayer was domiciled in the city for part of the year and had income subject to city tax while both a resident and a nonresident. For married taxpayers filing a joint return, choose Part-Year Resident if either of them was a resident for part of the year.
Under the Personal Information menu you can indicate:
- that a Port Huron income tax return was filed last year;
- the taxpayer's present employer;
- for residents, that the individual was only a resident for part of the year and had no income subject to city tax while a nonresident;
- for part-year residents, the dates of residency.
Income from the Federal return is carried into the city return here, and residents and nonresidents access this menu to indicate what income is excludible from city income tax. (Part-year residents allocate income between resident and nonresident on Schedule L. See the Tax section below.) Each income item needs to be verified for accuracy and adjusted as needed to exclude income not earned in the city.
Information flowing from W-2s on the federal return is listed in the Wages menu.
Residents and Nonresidents - For each W-2 you need to visit the Excludible Wages menu and indicate the number of days the taxpayer worked for the employer as well as the number of days worked both inside and outside the city. These numbers are used to calculate the portion of wages that is excludible from income tax. Port Huron tax withholdings on a W-2 will carry automatically to the Port Huron return if PH is indicated in the Locality box on the W-2.
Port Huron does not tax the following income:
- Interest from U.S. and state obligations;
- Social security and Railroad Retirement benefits;
- Military, Reserve, and National Guard pay;
- Pensions and annuities, including disability pensions, after age 59-1/2;
- Distributions caused by the rollover of a traditional IRA into a Roth IRA;
- Insurance proceeds and amounts received for personal injuries, sickness, or disability (to the same extent as in the federal code);
- Welfare relief, unemployment benefits, worker’s compensation;
- Gifts and bequests.
The Adjustments menu is under the Income menu, and the adjustments allowed are specified by Michigan law and are limited to the extent they apply to income that is taxable by the City.
- Moving Expenses - Moving expenses can be deducted to the extent allowed under federal IRC § 217. For tax years 2018 through 2025, this deduction is limited to active duty members of the armed forces. See IRS Publication 521.
Employee Business Expenses - Expenses that are "ordinary, necessary, reasonable, and unreimbursed" paid by a taxpayer in the course of performing services as an employee can be deducted. This includes:
- travel, meals, and lodging while away from home;
- transportation other than commuting to and from work;
- expenses of an outside salesperson while away from the employer's place of business;
- expenses incurred under an expense allowance arrangement where the reimbursement is included in compensation on the W-2.
- Alimony Paid - Alimony payments deducted on the federal return will automatically carry here. Nonresidents can only deduct the portion equal to the percentage of taxable income to federal AGI.
- Deductible IRA Contributions - Individuals who are self-employed can deduct payments to a qualified retirement plan to the extent allowed under federal IRC § 404. Payments to an IRA can be deducted to the extent allowed under federal IRC § 219.
- Other - If a Renaissance Zone Deduction or another deduction allowed by law is available, enter it under Other.
This menu is accessible only by part-year residents, and it must be selected to edit the Schedule L - Multiple Tax Rate Schedule. This schedule indicates income earned while a resident of Port Huron and income earned in Port Huron while a nonresident, calculating the tax for each. The Federal column is for reference purposes only and may not show all the income on the return, so refer back to the federal return to ensure the resident and nonresident columns are completed correctly.
Note: If the "Partial Resident" box is checked at the top of Form PH-1040, lines 1 through 11 on the form will be blank since the tax calculation is being done on Schedule L.
Total Payments and Credits
Indicate under this menu any estimated tax payments made during the year, credit for tax paid by a partnership on the taxpayer's behalf, and the credit for Michigan city income tax paid to another city.
Only resident filers are allowed credit for city income tax paid to another city, and the credit is equal to the lesser of the tax paid to the other city or the tax a nonresident would pay on the same income. Port Huron does not have a separate schedule or worksheet to assist with this calculation.
Refund or Amount Due
If the return results in a refund, you will have the option of applying some or all of it to next year's return.
Port Huron Estimates
Form PH-1040 ES, Estimated Tax Payment Vouchers can be created and printed under this menu.
Port Huron Extension
Form PH-4868, Application For Extension of Time To File a City Income Tax Return can be created and printed under this menu. An extension application does not need to be filed if the return will show a refund, and the balance due as calculated on the form must be paid to obtain the extension.
Port Huron Amended Return
Use this menu to create Form PH-1040X, City of Port Huron Amended Individual Tax Return. Unlike the State of Michigan tax return that has an Amended check box at the top of the return, the Port Huron amended return is similar to the federal 1040X using Original, Corrected, and Net Change columns to calculate any additional balance due or refund. To create an amended return, from the City of Port Huron Tax Return Menu select
- Port Huron Amended Return
- MI PH1040X Menu
- Original Column, then Ok
- Exit, then Exit again
After having pulled the original return information into the amended return, correct the original return as needed.
Once the original return has been corrected, again select
- Port Huron Amended Return
- MI PH1040X Menu
- Corrected Column, then Ok
The Form PH-1040X Menu has three items:
- Personal Information - Under this menu, indicate
- if the address has changed from the original return;
- changes to residency status, filing status, and number of exemptions claimed. Note: The Original and Corrected "Date From" and "Date To" fields only need to be completed if the corresponding Residency Status is Part-Year Resident.
- PH 1040X Tax and Payments - Under this menu, indicate
- The amount paid with the original return, if any, plus any additional payments after filing the original return
- The amount of the refund on the original return, if any
- Explanation of Changes - enter an explanation of why the return is being amended, maximum of 5 lines.
Once you have finished with the amended return, select View/Print Form MI PH1040X to print it. If you need to start over, select Remove Form MI PH1040X.
The City of Port Huron Individual Income Tax Return must be mailed, and to help avoid deductions and credits being disallowed and ensure minimal delay in processing be sure to include every federal and state form and schedule that will explain each amount, including the following:
- If the address on the return is a PO Box or is not the taxpayer's legal address, attach a statement indicating the taxpayer's actual residence.
- If unreimbursed business expenses are being claimed as a deduction from income, attach a schedule providing the details for each expense being claimed.
- If payment to a retirement plan is being claimed as a deduction from income, attach a copy of a receipt or canceled check.
- If moving expenses are being claimed as a deduction from income, attach federal Form 3903.
- If city tax was was withheld on a W-2, attach a copy of the W-2.
- If the return includes business income, attach a copy of the federal Schedule C.
- If the return includes capital gains or losses, attach a copy of the federal Schedule D and Form 4797.
- If the return includes a distribution from an S Corporation, attach a copy of pages 1 and 2 of federal Schedule E.