Frequently Asked Questions

Residents

All residents of the City of West Carrollton who are between the ages of 18 and over are required to file a West Carrollton Income Tax Return, even if no tax is due.  Certain residents may qualify for an exemption from filling an annual return including those who are fully retired with no taxable income.  Please contact the tax department to see if you qualify.

Non-Residents

Non-residents earning income (including salaries, wages, compensation or profits which result from work performed, services rendered, business transacted or activities located with the City of West Carrollton) are required to file if West Carrollton tax has not been withheld at the correct rate of 2.25%.   Non-resident individuals, sole proprietorships, partnerships, limited partnerships, limited liability companies, limited liability partnerships, associations, corporations, and S-corporations that own rental properties, conduct business, perform services, solicit sales, operate or maintain an office in West Carrollton must file, even if no tax is due.

All individuals that resided in West Carrollton for 30 days or more are required to file, but are only liable for income earned while a resident.  Please document the dates you lived in West Carrollton using the tax year on the tax return.

Complete copies of all W-2 forms should be attached to your return.  Please keep in mind that each W2 may contain multiple pages and that copies of all pages are needed to verify both total taxable income and allowed credit.

Federal Form 1040, Federal Schedule 1, and all other applicable Federal Schedules and/or documentation must be attached.  Examples of applicable documentation include Sch. C. Sch. E, Sch. K, Sch. K-1, Form 1065, Form 1120, Form 2106, page 1 of Form 1040, Sch. F, Form 1099, Form 4797 (page 1 & 2), etc.

Retirees are not required to pay on their income from Social Security or income from Federally qualified retirement plans. However, retirees are subject to the tax if they have any other types of earned income.  If all your income is nontaxable (i.e. qualified pension, interest, dividends, etc.) then you need only put a zero on line 3, sign and return the form to our office.

If a retired person does not receive any taxable income, they may request an exemption from the annual filing requirement.  Eligible candidates must be at least 65 years or older, be fully retired with no earned wage or other taxable income and must submit an Individual Declaration of Exemption form.

There is no age limit, per the Ohio Revised Code, for paying municipal taxes on otherwise taxable earned income. If you have taxable earned income, even if you are 65 or older, you must file a West Carrollton Income Tax Return.

Yes, unless you can provide proof that you have changed your permanent residence to your school address. Acceptable proof may include a copy of your driver’s license showing school address, voter registration change, and the first page of your Federal tax return.

Taxable Income Includes but is not Limited to:

• Qualifying wages (generally found in Box 5 of Form W-2)
• Salaries
• Commissions
• Vacation pay
• Sick pay (if reported as qualifying wages – excluding third party sick pay)
• Wage continuation plans (includes retirement incentive plans and buyouts)
• Contributions made by or on behalf of employees to a tax deferred annuity plan (401k plans and the like)
• Bonuses
• Directors Fees
• Income from jury duty
• Fringe benefits, such as car allowance
• Stock options (taxed when exercised, valued at market price less option price on the date the option is exercised)
• Gambling winnings
• Royalty Income
• Net profits from the operation of a business, profession, enterprise or other activity
• Net rental income
• Any income as identified in Chapter 94.5 of the West Carrollton Tax Ordinance

Non-Taxable Income include:

• Interest or dividend income
• Welfare benefits
• Social Security benefits
• Third party sick pay
• Income from federally qualified pension plans
• State unemployment benefits
• Workers compensation
• Proceeds of life insurance
• Alimony
• Active duty military pay (includes National Guard pay when on active duty)
• Capital Gains
• Earnings of persons under 18 years of age
• Any exemption as identified in Chapter 94.5 of the West Carrollton Tax Ordinance

Yes, anyone having a rental property located in West Carrollton is required to file a return and include a copy of their Schedule E or applicable schedule of income and expenses for the rental. A return is required each year even though losses may have been incurred. Also, any West Carrollton residents having rental properties are required to file on those properties no matter where the properties are located. There is a five-year loss carryforward limit.  Note:  Losses cannot be used to offset W-2 income.

Typically, the qualifying wages in box 5 are subject to tax and may differ from the amount in box 1 “Wages, tips, and other compensation”.  Many people find that their qualifying wages are higher because they include all types of earnings, some of which may be deferred for federal income tax purposes.  These amounts are taxes for municipal purposes because they are excluded from municipal taxes upon retirement.  Taxable gross wages, for city purposes, is any income not expressly excluded by the West Carrollton Income Tax Ordinance and includes any income earned, received, accrued or in any other way set apart unto West Carrollton residents or unto any nonresidents performing services in West Carrollton.

Local wages are shown in box 18 and may not match the amount of qualifying wages in box 5.  Often this is due to working in multiple local municipalities throughout the year but could also be due to other reasons such as a delay in the courtesy withholding of local taxes or due to an error.  Contact our office or your tax preparer for assistance if you are unsure which box to use for reporting your taxable wages.

Yes.  Residents who work outside the city and pay income taxes to the city where they work can take full credit on their West Carrollton taxes, as long as the credit doesn’t exceed the amount they paid to the other city.  The allowable credit is up to 2.25% of the amount paid to the other city per W-2 form.  Allowable credits are calculated per W-2 and may not be used to offset untaxed income from a different W-2 form.

Individuals and calendar-year entities are required to file the taxes no later than the date posted by the City’s Income Tax Department.  Fiscal-year entities are required to file four (4) months after the end of the fiscal year.

• Tax Year 2024:  Due no later than April 15, 2025
• Tax Year 2023:  Due no later than April 15, 2024
• Tax Year 2022:  Due no later than April 18, 2023
• Tax Year 2021:  Due no later than April 18, 2022
• Tax Year 2020:  Due no later than June 15, 2021*
• Tax Year 2019:  Due no later than July 15, 2020*

*Indicates revised due date extended by the city

Payment of any tax balance must be paid no later than the tax filing due date in order to avoid any potential penalties or interest charges.  Any remaining account balances may be submitted to the State of Ohio for collection after ninety days from the tax filing due date.

Individual taxpayers who expect to earn taxable income, which is not subject to withholding at a rate equal to or greater than 2.25%, are required to make quarterly estimated tax payments if their tax liability will exceed $200.00. Quarterly estimated tax payments are due on or before April 15, June 15, September 15, and December 15.

Businesses or other taxpayers reporting on a fiscal year basis instead of a calendar year basis, quarterly estimated tax payments are due on or before the fifteenth day of the fourth, sixth, ninth, and twelfth month of the fiscal year.

A penalty may be imposed on unpaid income tax, including unpaid estimated income tax, equal to 15% of the amount not timely paid.

Late Filing Penalty

A $25 late filing penalty may be imposed for a return, other than an estimated income tax return, that remains unfiled. This late filing penalty applies regardless of the liability on the return.

Penalty – Unpaid Tax

A penalty may be imposed on unpaid income tax, including unpaid estimated income tax, equal to 15% of the amount not timely paid.

A penalty may be imposed on unpaid employer withholding tax equal to 50% of the amount not timely paid.

Interest – Unpaid Tax

Interest shall be imposed on all unpaid income tax, unpaid estimated income tax and unpaid withholding 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 (5.00%). The rate shall apply for the calendar year next following the July of the year in which the federal short-term rate is determined under Section 1274 of the Internal Revenue Code.

Note: Interest applies to any balance of tax due that is not paid by the due date of a return, even if the return is filed under extension.  The rates are as follows:

• Calendar year 2025: 10% per year or 0.83% per month
• Calendar year 2024: 10% per year or 0.83% per month.
• Calendar year 2023: 7% per year or 0.58% per month
• Calendar year 2022: 5% per year or 0.42% per month
• Calendar year 2021: 5% per year or 0.42% per month
• Calendar year 2020: 7% per year or 0.58% per month
• Calendar year 2019: 7% per year or 0.58% per month
• Calendar year 2018: 6% per year or 0.50% per month
• Calendar year 2017: 6% per year or 0.50% per month
• Calendar year 2016: 5% per year or 0.42% per month

Collections

Any remaining account balances may be submitted to the State of Ohio for collection after ninety days from the tax filing due date or date return was filed – whichever is greater.  Balances submitted for collection will include penalties and interest charges assessed by the City in addition of a collection fee added by the State.

If you have any questions concerning West Carrollton Income Tax, or need assistance in filling out your return, please contact our office:

Civic Center
Income Tax Department
300 E. Central Ave.
P.O. Box 10
West Carrollton, OH 45449

PHONE: (937) 859-8288
FAX: (937) 859-3366

Our office hours are 8:00 a.m. – 4:30 p.m. Monday through Friday.  The office will be closed for all city-recognized holidays.

The City of West Carrollton enacted a municipal income tax in 1963.  The tax is applicable to all residents of the city as well as all non-residents working within the city and all businesses located or performing services here.

The current income tax rate of 2.25% is levied upon all gross wages, salaries and other compensation, and all business net profits.

The Income Tax Division is responsible for administering the Income Tax Ordinance. Employees of the division are available between the hours of 8:00 a.m. and 4:30 p.m. Monday through Friday to provide assistance to tax payers in the filing of city income tax returns or other West Carrollton income tax documents and/or to provide answers to questions relating to the tax.