New Municipal Tax Law Changes Will Affect You
The State of Ohio has made significant changes to the Ohio municipal income tax laws (Chapter 718 of the Ohio Revised Code) some of which affect the due dates of your estimated tax payments.
Beginning January 1, 2016:
• Quarterly estimated tax payments are due April 15, June 15, September 15 and December 15 of each year.
Tax Rate: 2.25%
• Calendar year end returns are due April 15.
• Current interest rate: 3%. (Calculated based on federal short term rate plus 3%)
• 2016 interest rate: 5%. (Calculated based on federal short term rate plus 5%)
• Forms may be obtained by calling our office at (937) 296-2502 or click here to go directly to the forms page.
• The City of Kettering Income Tax Division now accepts credit card and debit card payments.
Who Must File
All residents of the City of Kettering (18 years of age and older) are required to file a city income tax return with the Tax Division on an annual basis. The term “resident” applies to anyone whose permanent legal residence is located in the City of Kettering. This includes persons who own their homes and those who rent the apartment or home in which they live. If you have questions about your residency status, please contact the Tax Division.
Part Year Residents
If you only lived in Kettering during part of the taxable year, you must file a tax return covering that time. Report the amount of income you earned while you lived in Kettering. Pay statements with year to date figures or a statement from your payroll department must be used if available. If you pro-rate your income, you must also pro-rate your city tax that was withheld on the same income. Attach a worksheet to your return explaining your calculations.
Non-residents earning income (including salaries, wages, compensation or profits which result from work performed, services rendered, business transacted or activities located within the City of Kettering) from which Kettering Tax has not been withheld at the correct rate of 2.25%.
Exceptions to Mandatory Filing Requirement
Active duty military personnel, unemployed persons or persons with no reportable income or loss for the current year may use the Declaration of Exemption Return as their annual return filing with the Tax Division. Click here for Form Instructions.
Permanently retired or permanently disabled persons with only non-taxable income for city purposes (such as social security, pensions, interest, and dividends) may file for a permanent exemption from the mandatory filing requirement by completing the Declaration of Exemption Return.
Taxable Income Includes
(but is not limited to the following)
• Qualifying wages (generally found in Box 5 of Form W-2)
• Other compensation (includes sick and vacation 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)
• Directors Fees
• Fringe benefits, such as car allowance
• Disability pay if received as a benefit from employment (includes third party plan)
• Stock options
• Gambling winnings
• Net profits from the operation of a business, profession, enterprise or other activity
• Military Pay and Allowances
• Social Security Benefits
• Welfare Benefits
• Unemployment Insurance Benefits
• Worker’s Compensation
• Proceeds from qualified retirement plans as defined by the IRS
• Personal earnings of all persons under the age of eighteen (18)
• Capital Gains
• Contributions to a Section 125 plan (cafeteria or flexible spending account)
Estimated Tax Payments
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, July 31, October 31, and January 31. Forms may be obtained by calling our office at (937) 296-2502 or click here to go directly to the forms page.
The information contained above is intended to provide a brief summary of filing requirements and does not cover all possible circumstances.
If you have any questions or need additional information, please contact the Tax Division at (937) 296-2502 weekdays from 8:00 a.m. to 5:00 p.m., or click here to send an email message to the Tax Division.