Frequently Asked Questions
Q: Who is required to file West Carrollton income tax returns?
A: Resident individuals, between the ages of 18 & 65 and have lived in West Carrollton 30 days or more, are required to file a West Carrollton Income Tax Return, even if no tax is due. Non-resident individuals whose West Carrollton taxable income was not fully withheld. 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 though no tax is due.
Q: What if I only lived in West Carrollton part of the year?
A: 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.
Q: What schedules or supporting documents should I attach to my return?
A: Most taxpayers will have completed their Federal tax return before completing their City return. Any Federal schedules or forms containing any information that relates to the information on the City return should be attached. Examples: W-2, 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.
Q: Are retired persons required to pay city tax?
A: 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 do not have to file after they reach the age of 65 or older and notify the city of their date of birth. 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.
Q: Are students exempt from the tax?
A: No, being a student has no effect on your city tax liability. All residents of West Carrollton who are 18 years of age or over are required to file.
Q: Why doesn’t the city tax interest income?
A: Per the Ohio Revised Code, municipalities in Ohio are prevented from taxing most types of intangible income including interest, dividends and capital gains.
Q: I have a rental property that shows a loss each year after expenses. Should I include that in my return?
A: 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.
Q: My W-2 has differing amounts in the federal income box, the local income box and the Medicare box. Which amount should I show as taxable wages for my city income tax return?
A: Assuming that your employer has withheld correctly, you should use the amount in the local income box. However, if the amounts shown in the Medicare box or the federal income box are higher than the local amount, something is wrong. You should contact our office or your tax preparer for assistance. Because of various federal deferral programs available, taxable wages may not always be the same for federal tax purposes, Medicare purposes, and city tax purposes. 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.
Q: I live in West Carrollton but work in another city and have tax withheld for that city. Do I get credit for that against my West Carrollton tax liability?
A: Yes, the credit is allowed for taxes paid to another city. The allowable credit is up to 2.25% of the amount paid to the other city.
Q: When are tax returns due?
A: Individuals and calendar-year entities are required to file by April 15 unless otherwise noted by the city’s Finance Department. Fiscal-year entities are required to file four (4 )months after the end of the fiscal year.
Q: When are estimate payments required?
A: Each taxpayer who may owe at least $200 more than what will be withheld from his or her income must file an estimate declaration by April 15th.
Q: What are the penalties if I don’t file?
A: Failure to pay taxes due, other than taxes withheld, will result in penalty of 1.5% for each month not paid or 10%, whichever is greater. The total penalty cannot exceed 50% of tax due. Interest will be charged at .75% per month, or fraction thereof, to be assessed from the original due date.
TAX ADMINISTRATOR:
THOMAS REILLY
PHONE: (937) 859-8288
FAX: (937) 859-3366
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
Our office hours are 8:00 a.m. – 4:30 p.m. Monday through Friday.
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 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.