Who is required to file?
Findlay, Arlington, Mount Cory, and Vanlue resident individuals are subject to the income tax return mandatory filing requirement at age 18.
Findlay and Arlington resident individuals who are 16 or 17 years of age, who have income that is subject to the income tax, must file even if no additional tax is due.
Non-resident individuals whose taxable income was not fully withheld upon must file.
Non-resident individuals are not required to file if all their tax was properly withheld by their employers.
Non-resident individuals, sole proprietorships, partnerships, limited partnerships, limited liability companies, limited liability partnerships, associations, corporations, trusts, and S corporations that own rental properties, conduct business, perform services, solicit sales, operate, or maintain an office in Findlay, Arlington, Mount Cory, Vanlue, or Carey must file, even if no tax is due. See ORC 718.01 and 718.02 for reconciling and apportioning business net income. See ORC 718.06 for consolidated returns.
Do I pay taxes based on where I work or where I live?
In Ohio, an individual’s first obligation is to the city or village where he or she works, earns taxable income, conducts business, or owns rental properties. The individual’s next obligation is to the city or village where he or she lives or is domiciled. Then, it is a matter of how much credit the community of residence allows for already paying tax to the community where the income is earned. Findlay, Mount Cory, and Vanlue do not offer a credit. Arlington and Carey offer a credit of the amount of tax paid to the community where the income is earned not to exceed one percent.
Municipal income tax exists in Ohio to assure financial independence for its communities. Moreover, municipalities use income tax revenues to provide personal and property protection, to build and maintain thoroughfares and infrastructure, to foster skilled workforces, and to promote high qualities of life. These resources develop and strategically locate mutually-beneficial places that attract businesses and consumers ensuring vocational, professional, entrepreneurial, educational, recreational, cultural, and medical opportunities for all Ohio residents.
Common sources of income that are taxable
Unless otherwise prohibited by Chapter 718 of the Ohio Revised Code, taxable income includes, but is not limited to:
- W-2 box 5 Medicare wages described in IRC 3121(a) without regard to limitations or exclusions (ORC 718.03)
- Salaries, commissions, and bonuses
- Tip income
- Sick pay
- Vacation pay
- Severance pay, incentive pay
- Strike pay
- Contributions to deferred compensation plans such as IRC 401(k), 403(b), or 457
- Lottery winnings and gambling winnings
- Stock options even if not reported in the W-2 box 5 Medicare wages
- Salaries, wages, or stipends earned or received through college or university work-study programs, internships, and grant-funded programs even if not reported in the W-2 box 5 Medicare wages
- Supplemental unemployment compensation benefits described in IRC 3402(o)(2)(A)
- Employment-related prizes, awards, and gifts
- Cost of group term life insurance for active employees for protection in excess of the amount specified in IRC 79
- Net housing allowance
- Fees received by jurors, union stewards, directors, executors, executrixes
- Income reported on Federal Form 1099-MISC
- Babysitting income
- Business income
- Farm income
- Rental income
- Oil & gas royalties (i.e., derived from land)
Common sources of income that are not taxable
Unless otherwise delineated in Chapter 718 of the Ohio Revised Code non-taxable income includes, but is not limited to:
- Government-paid unemployment compensation
- Workers’ compensation
- Social Security benefits
- Government aid
- Pensions and qualified retirement benefits
- Income reported on a 1099-R, 1099-DIV, or 1099-INT
- IRC 125 cafeteria plan contributions
- Sick pay described in IRC 3402(o)(2)(C), not reported in the W-2 box 5 Medicare wages
- Active and reserve military pay [ORC 718.01(C)(1)]
- Royalties derived from intangible property
- Patent and copyright income
- Value of a home or a parsonage furnished by a church to its designated minister
- First $1,000 of annual income for serving as a precinct election official
- Life insurance proceeds
- Proceeds from inheritance
Federal forms and schedules to be included with your tax form
- Form 1040 page 1 or equivalent
- Form W-2 Wage and Tax Statements
- Schedule C pages 1-2
- Schedule E pages 1-2
- Schedule K-1 from 1120-S
- Schedule K-1 from 1065
- Form 4797
- Schedule F
- Form 4835
- Schedule A, if claiming allowable 2106 expenses
- Form 2106, if claiming allowable 2106 expenses
- Form 4868 extension request or equivalent, when the extended return is filed
- Form 8582, if Schedule E rental losses are limited or suspended for Federal tax purposes
- Schedule D, if rental properties were sold