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INCOME TAX DIVISION |
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Individual Income Tax Information |
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| The following information 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.
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| General Information: |
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In May of 2006 the voters in the City of Kettering approved an increase in the tax rate to 2.25% which went into effect on January 1, 2007. This means that all taxable income earned or received or won after December 31, 2006 is subject to tax at the new rate of 2.25%. However, any taxable income earned or received or won prior to January 1, 2007 is still subject to tax at the previous rate of 1.75%. |
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Calendar year end returns are due April 15. |
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Forms may be obtained by calling our office at (937) 296-2502 or click here to go directly to the forms page. |
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| Taxable Income: |
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Qualifying wages (as defined in IRC Section 3121(a) and generally found in the Medicare wage Box on Form W-2), salaries, tips, commissions and other compensation including sick pay, vacation pay, income from 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, fringe benefits such as car allowance, disability pay if received as a benefit from employment (includes third party plan), stock options, and gambling winnings. |
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Net profits from the operation of a business, profession, enterprise or other activity such as rental property, sole proprietorships or partnerships. |
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| Non-Taxable Income: |
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Interest, dividends, military pay and allowances, Social Security benefits, welfare benefits, unemployment insurance benefits, workers’ compensation, proceeds from qualified retirement plans as defined by the IRS, personal earnings of all persons under eighteen (18) years of age, capital gains, royalties, alimony, and contributions to a Section 125 (cafeteria) plan or flexible spending account. |
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| Who Must File: |
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Residents: All Kettering residents 18 years of age or older with taxable income are subject to Kettering income tax regardless of where their income is earned. Credit is given for income tax withheld and/or paid to another municipality, not to exceed 2.25%. The only exception to this filing requirement is for residents whose only source of taxable income is from wages and whose employers have correctly withheld Kettering tax (2.25%) from their qualifying wages. |
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Part Year Residents: If you only lived in Kettering during part of the taxable year, you must file a tax return covering that time, unless you fall under the exception listed above. 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. |
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Non-Residents: 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%. |
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| Estimated Tax Payments: |
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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. |
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