The income that should be reported depends on whether both the owner and the business are resident or non-resident. An owner is a resident when his or her primary residence is within the city limits. A resident business is a business entity having an office, operation, or business site within the City.
A. If the owner is a resident and the business is a resident then all income is subject to tax, regardless of where the work was performed.
B. If the owner is a resident and the business is a non-resident, all income is subject to tax, regardless of where the work was performed. However, if taxes are paid to a city (other than Trenton) in which the business resides, then Trenton will grant the business a credit up to the amount paid to the other municipality (but not in excess of the 1.5% Trenton tax).
C. If the owner is a non-resident and the business is a resident, then credit up to 1.5% will be allowed for city taxes paid to other municipalities.
D. If the owner and the business are both non-resident, then only income earned on work performed in the City is taxable.