Income Tax FAQs

Walker City Income Tax

1)     Am I a Walker resident subject to the tax?  Click here to view the Walker Street Directory for resident addresses.

2)     Who needs to file a Walker Resident income tax return?
Every resident or part-year resident of Walker, including renters, who had taxable income in a tax year must file a return by April 30 of the following tax year. See Taxable Income—Residents paragraph below.

Married persons may file either a joint return or separate returns. The following examples may be used to assist you in determining if a return is required:

  • Filing as a single person--if your income is $600 or more you must file a return.
  • Married, filing jointly--if your income is $1,200 or more you must file a return.
  • Filing as a single person and you are age 65 or older--if your income is $1,200 or more you must file a return.
  • Married, filing jointly and both you and your spouse are age 65 or older--if your income is $2,400 or more you must file a return.

Taxable Income--Residents

Walker residents are required to report the same kinds of taxable income on their city return as they report on their federal return, with the following exceptions:

  • Gifts, inheritances and bequests are not taxable income.
  • Pensions (including disability pensions), social security, annuities, IRA distributions after age 59 ½, and rollover of amounts from IRA’s to ROTH IRA’s are not taxable income.
  • Proceeds of insurance (except that payments from a health and accident policy paid for by your employer are taxable to the same extent as provided by the Internal Revenue Code).
  • Unemployment compensation and supplemental unemployment benefits are not taxable income.
  • Interest from obligations of the United States, the states, or subordinate units of government of the states, and gains or losses on the sales of obligations of the United States are not taxable income.
  • Military pay of members of the National Guard and the Armed Forces of the United States including Reserve pay is not taxable income.
  • Michigan State Lottery prizes won before January 1, 1988 are not taxable income. Michigan State Lottery prizes won after December 31, 1987 are taxable income.

If you are a shareholder in a corporation that has elected to file under Subchapter S of the Internal Revenue Code, you are not required to report any distributed income from Federal Schedule K-1 lines 1 through 11, nor may you deduct your share of any loss or other deductions distributed by the corporation. Distributions from an S corporation are taxable as if paid by a regular corporation as dividends.

3)     Who needs to file a Walker Non-Resident income tax return?
Every nonresident who had income subject to Walker City income tax in a tax year must file a return by April 30 of the following tax year. See Taxable Income—Non-Residents paragraph below.

  • Married persons may file either a joint return or separate returns. The following examples may be used to assist you in determining if a return is required:
  • Filing as a single person--if your income is $600 or more you must file a return.
  • Married, filing jointly--if your income is $1,200 or more you must file a return.
  • Filing as a single person and you are age 65 or older--if your income is $1,200 or more you must file a return.
  • Married, filing jointly and both you and your spouse are age 65 or older--if your income is $2,400 or more you must file a return.

Taxable Income—Non-Residents

The following income is subject to tax:

  • Compensation received for work done or services performed in Walker—compensation includes, but is not limited to; salary, bonus, wages, commissions, vacation pay, holiday pay, sick pay, incentive pay to leave employment, incentive pay for “early retirement”, lump sum distribution of vacation pay, lump sum distribution of sick pay, employee  savings plans, retirement stock purchase plans and profit sharing plans. (Please note that these examples do not cover every possible filing situation. If you have any questions, please contact the Walker City Income Tax Department at (616)791-6880.)
  • The net profits from the operation of a business or profession attributable to business activity conducted in Walker whether or not such business is located in Walker.
  • Net profits from the rental of real and tangible property located in Walker.
  • Gain from the sale or exchange of real and tangible  personal property located in Walker.
  • Premature distribution of an Individual Retirement  Account (IRA) when a deduction(s) has been taken on a Walker income tax return in previous year(s).

4)     My employer is not located in Walker and will not withhold Walker income tax.  What do I need to do to avoid penalty and interest?

If you expect that your Walker income not subject to withholding will be more than $10,000 for a resident after deductions or $20,000 for a non-resident after deductions ($100 in tax) in any calendar year, you must file quarterly estimated tax payments using form W-1040ES.  For tax year 2014, payments are due at the end of April, June, and September of 2014 and January of 2015.  W-1040ES forms for tax year 2014 can be found by clicking here.  For tax year 2015, payments are due at the end of April, June and September of 2015 and January of 2016.  W-1040ES forms for tax year 2015 can be found by clicking here.

Failure to file form W-1040ES and make the required payments will result in the assessment of penalty and interest for the late payment of tax.  To avoid penalty and interest charges, you must pay in through withholdings and/or quarterly estimated payments at least 70% of your current year or prior year liability, whichever is lower.

If at any time during the year your income increases to such a level that one hundred dollars tax or more will be due at the end of the year, form W-1040ES must be filed with the appropriate payment.  Please contact the Income Tax Department at 616-791-6866 if you need help calculating safe estimates.

5)     I only lived in Walker for part of the year--how do I file?
If you lived in Walker for part of the year and did not work in Walker as a non-resident, you need to file a Walker resident return (Form W-1040R). Report on this form only your taxable income while a resident, regardless of the source of the income. Check the part-year resident box under the name and address block on the form and fill in your dates of residency.

6)     I am having trouble preparing my Walker return. How do I get help?
We would be happy to prepare your Walker return free of charge. Call (616)791-6880 for an appointment. You will need to bring your completed federal return, W-2, and 1099 forms.

7)     My mailing address is Grand Rapids. How do I know if I live in Walker?
All addresses in the City of Walker have a Grand Rapids mailing address. There is a Street Directory in the Assessor’s section of this site that lists all of the address ranges that are in Walker city limits. Click here to view the Street Directory.

8)     I can’t pay my Walker income tax on time. What interest rate do you charge?
By law, we charge both penalty and interest on the unpaid balance of tax. Penalty is calculated at the rate of 1% per month up to a maximum of 25%.

The interest rate is set by the State of Michigan and changes every six months. It is currently 4.25% per year. It is calculated on a daily basis, which is .0001164.

9)     I received a distribution from a pension plan and/or an IRA that was reported to me on Form 1099-R. How do I know if it is taxable?
Click here for a PDF document containing the pension and retirement benefit taxability rules.

10)    How do I obtain a Walker withholding booklet?
The City of Walker Employer’s Withholding Tax Forms and Instructions booklet are no longer mailed. Forms must be printed from our web site by clicking here.

Follow the directions to fill out and print forms. If you have any questions concerning the forms, contact Nancy at: phone: (616)791-6869, fax: (616)791-6808 or email.

11)    What are the withholding rates?
The Withholding Tax Guide contains instructions for withholding the Walker income tax from employee’s pay. It includes withholding tables at 1% (resident rate) and 1/2% (non-resident rate). The personal exemption rate for individuals subject to the Walker income tax is $600 per exemption. The Withholding Tax Guide can be downloaded by clicking here.

12)    I made a deductible IRA contribution for federal purposes.  How do I calculate my Walker IRA deduction?  Click here for an Excel spreadsheet that will help with this calculation.

13)    What mailing address should I send my completed Walker income tax return to?
All Walker individual, corporate, partnership, and employer withholding income tax returns should be mailed to:

City of Walker
Income Tax Department
PO Box 153
Grand Rapids, MI 49501-0153