1. I have activity (income or loss) from self-employment (Schedule C), rental property (Schedule E), farming (Schedule F), or a partnership (Schedule K-1).  Should I include a copy of my Federal Schedule C, E, F or K-1 with my RITA return?

Yes. The federal schedules submitted should include the city or property address of each business activity.  See Sample Schedule C, Sample Schedule E, and Sample Schedule K-1.  In addition, if you have paid tax directly to another city, you must include a copy of that city’s tax form as proof of payment. 

  1. Can my Federal Schedule C, E, F or K-1 losses offset my W-2 wage income?

No portion of a net operating loss shall offset against wages or W-2 income. A loss can generally be carried only forward against future profits. Note: See the Special Notes for a list of municipalities that have exceptions regarding losses.

  1. I’m not a resident of a RITA city and I have self-employment, rental property, or farming income located within a RITA city.  Do I need to file a RITA return?

Yes.  Activity (profit or loss) that has occurred in any RITA member city as a result of self-employment, rental activity, or farming must be reported on a RITA return.

  1. I have Federal Schedule E rental property income or loss in multiple cities.  How should I report these on a RITA return?

The activity of each city (profit or loss) should be reported on Form 37, Schedule J.  Business activities must be separated by location in order to properly allocate any tax due.  See Sample Schedule E.

  1. I have Federal Schedule C income and Federal Schedule E loss.  Can I offset my Federal Schedule C income with my Federal Schedule E loss?

Yes.  Generally the city will only allow an offset if both business activities are located within the same city. See the instructions for Form 37, Schedule J for further information. Note: See the Special Notes for a list of municipalities that have exceptions regarding losses.  Also, see Sample Schedule C and Sample Schedule E,.

  1. A partnership paid local tax on my behalf to a RITA member city.  How do I report this tax paid on my behalf on a RITA return and what additional documentation is required to be submitted with my RITA return?

You should include a copy of your Schedule E and/or K-1 form. Any tax paid to a RITA member city on your behalf should be reported on Form 37 line 7B.  See the instructions for Form 37 line 7b for further information.  See Sample Schedule E and Sample Schedule K-1.