Who must file? It is mandatory that you file an annual City of Xenia tax return EVEN IF NO TAX IS DUE: All Xenia residents and partial year residents between the ages of 18 and 65. All Xenia residents aged 16 and 17 if their Xenia city income tax was not completely withheld at 2.25% Retired residents over 65 if they have rental, business, or other earned income. Every business entity that conducts business within or for the City of Xenia. Every non-resident who engages in business or other activity within the City of Xenia, including, but not limited to rental of real and personal property must file a return whether tax is due or not. Non-residents who are employed within the City of Xenia, but Xenia tax is not fully withheld by their employer must file a return. All pass-through entities (any class of entity the income or profits from which are given pass-through treatment under the IRS Code) shall be taxed at the hands of the entity, not the hands of the owners of the entity. All returns require the following: Name(s) and current address Social Security Number(s) Taxpayer Signature(s) (if this is a joint filing BOTH taxpayer signatures are required) Proof of taxable income Proof of credits for Xenia or other city tax withholding Section A: If you have no city taxable income, you must complete Section A and Section C only. If you have city taxable income, you must complete Section B. Section B: Enter the name of each employer, the amount of City of Xenia or JEDD-01 tax withheld (do not include any Xenia school district tax withheld), the amount of non-xenia city tax withheld up to 1.5%** and the city taxable wages (normally the Box 5 Medicare wages). **How to calculate your maximum credit for other city withheld multiply the total wages taxed by the other city X.015. If the calculated amount is greater than the other city tax withheld, enter the other city tax withheld on your return. If the calculated amount is less than the other city tax withheld, enter the calculated amount. Attach all W-2s required to provide proof of city taxable wages, City of Xenia or JEDD-01 tax withheld, and other city tax withheld. Since some employers provide multiple copies of W-2s with different information, you may need to attach multiple W-2s from a single employer to provide the required proof. Enter all the W-2s and enter the totals in 1A, 1B, and 1C. If you are prorating the credit for other city tax withheld or the wages listed for partial-year residence, you must attach worksheets showing your calculations. If City of Xenia taxes were withheld because of working within the City of Xenia rather than residency, no City of Xenia tax is subject to refund. If any of the other city tax withheld listed on your W-2 was refunded to you (or if you have applied for a refund), you cannot take it as a credit toward City of Xenia tax liability. The City of Xenia reserves the right to check with other municipalities to determine if any other city tax withheld listed has been refunded to the taxpayer. 1
Line 1D. LESS EMPLOYEE BUSINESS EXPENSES: Use the 2106 WORKSHEET on the back of the form to calculate your 2106 Employee Business Expenses. If you are taking this deduction, you must attach your Federal 1040, Federal Schedule A and Federal Schedule 2106. If any of the 2106 expense was refunded to you (or if you have applied for a refund), you cannot take it as a deduction against City of Xenia tax liability. The City of Xenia reserves the right to check with other municipalities to determine if any 2106 expense listed has been refunded to the taxpayer. Line 1E. TOTAL TAXABLE WAGES: Subtract Line 1D from 1C. LINE 2. INCOME OTHER THAN WAGES Enter the TOTAL of all other city taxable income (or losses), other than W-2 wages, as listed on Worksheet A and Schedule H on the back of the form. Examples of other city taxable income are business income (as listed on a 1099, Federal Schedule C, Federal Schedule E, Federal Schedule K-1. A Federal Schedule 4797 (Recapture of Depreciation on Sale of Rental Property) may be required if you have sold rental property. Income from gambling winnings must also be listed. Losses on Worksheet A may be used to offset income on Worksheet A. However, no losses may be used to reduce city taxable wage amounts. All Federal Schedules and/or 1099 forms providing proof of income (or loss) must be attached to the return. LINE 3. TOTAL INCOME Add Line 1E and Line 2. If Line 2 shows a net loss, it cannot be subtracted from Line 1E. This is your City of Xenia taxable income. LINE 4. TAX Multiply Line 3 X.0225 to obtain tax. This is your City of Xenia tax liability. LINE 5A. XENIA/JEDD-1 TAX WITHHELD Enter the total City of Xenia/JEDD-1 tax withheld from 1A. LINE 5B. 2016 ESTIMATED PAYMENTS Enter the amount of any estimated payments you have made to the Tax Division and/or any credit carryforwards from previous tax years. 2
LINE 5C. CREDIT FOR OTHER CITY TAX WITHHELD Cannot exceed 1.5% Enter your other city tax withheld credits from 1B. LINE 5D. TOTAL TAX CREDITS Add Line 5A, Line 5B and Line 5C. This is your total credits against your City of Xenia tax liability. LINE 6. BALANCE DUE If Line 4 is greater than Line 5D, enter your balance due. If the balance due is less than $10.00, it need not be remitted. Even if you cannot pay your balance in full, you should still file by April 16, 2018 to avoid late filing penalties. LINE 7. OVERPAYMENT If Line 5D is greater than Line 4, enter the amount overpaid. If the amount overpaid if less than $10.00, no refund or credit carryforward will be provided. If you have an overpayment $10.00 or greater, enter the portion of the overpayment to be refunded and/or credited to 2018. If no selection is made, the overpayment will be applied as a credit carryforward to 2018. If there is penalty and/or interest applied to your tax return, the Tax Division will calculate it when your return is reviewed. For tax year 2017, the following penalties are applicable: Underpayment of estimated taxes penalty the penalty is 15% of the amount underpaid per period. To avoid this penalty, either 100% of your 2017 Xenia tax liability or 90% of your 2017 Xenia tax liability must be received via withholding credits or estimated payments by December 15, 2017. If these minimum credit thresholds are not met, penalty will be applied based on the following payment due schedule: 22.5% was due by April 15, 2017 45% was due by June 15, 2017 67.5% was due by September 15, 2017 90% was due by December 15, 2017 Late filing penalty the penalty is $25.00 per month (or part thereof) up to a maximum of $150.00 Non-payment penalty the penalty is a one-time 15% of the tax that was not paid by the return filing due date. NOTE: An extension to file is not an extension to pay. For tax year 2017, the interest rate on delinquent taxes is 0.500% per month (or part thereof). 3
DECLARATION OF ESTIMATED TAX FOR YEAR 2018 If you have City of Xenia tax fully withheld from all your city taxable income, then you do not need to complete this section. If you do not have City of Xenia tax fully withheld from all your city taxable income, you should complete this section and make estimated payments on your 2018 Xenia taxes. Changes effective for tax year 2017 and beyond related to estimated tax payments: If your Xenia tax is not fully withheld by your employer, you MUST make estimated tax payments using the following schedule to avoid an underpayment of estimated taxes penalty: 22.5% by April 15 45% by June 15 67.5% by September 15 90% by December 15 Failure to have 90% of your Xenia tax liability paid via withholding credits and/or estimated payments will result in a penalty of 15% of the amount not timely paid. This penalty applies to each quarter that was not timely paid. You may also avoid this penalty by having 100% of your 2017 Xenia tax liability or 90% of your 2018 Xenia tax liability paid via withholding credits and/or estimated payments by December 15, 2018. LINE 8. TOTAL ESTIMATED TAX FOR 2018 Enter your estimated City of Xenia tax liability for 2018. This is your estimated 2018 Xenia taxable income X.0225. LINE 9. LESS CREDITS Add up all your estimated credits towards your 2017 Xenia tax liability. This includes credit carryforwards from tax year 2016, credit for Xenia/JEDD-01 withheld, and/or credit for other city tax withheld (not to exceed 1.5%). LINE 10. NET ESTIMATED TAXES OWED Subtract Line 9 from Line 8. This is your estimated 2018 net Xenia tax liability (after credits). LINE 11. AMOUNT PAID WITH THIS DECLARATION If your Xenia City taxes are not fully withheld on your income, it is strongly recommended that you make an estimated payment with the filing of your tax return to avoid or reduce underpayment of estimated taxes penalty for tax year 2018. LINE 12. TOTAL DUE Add Line 6 And Line 11. This is your total balance due with your tax return. 4
Taxable Income and Non-Taxable Income: These are the most common types only. Please review the City of Xenia Income Tax Rules and Regulations and/or the Ohio Revised Code Chapter 718 for more information on what is city taxable. TAXABLE INCOME Allowance for uniforms, autos and travel Annual leave lump sum payment Bonuses Commissions Compensation paid in goods, services, property or the use thereof at fair market value same as to IRS Contributions made by or on behalf of employees to 401K or deferred compensation plans Contributions made by or on behalf of employees to a tax deferred annuity or stock purchase plan Cost of group term life insurance over $50,000 Director s fees Disability income received as a benefit of employment Employee contributions to cost of fringe benefits Employer paid education assistance if IRS taxed Executor fees Gambling winnings, prizes and lottery winnings Golden parachute payments Honorariums Incentive payments Income buyouts Income from guaranteed annual wage contracts Income from wage continuation plans Miscellaneous earned income, examples: child-care, house cleaning, yard work (1099-Misc) Moving expense reimbursement in excess of expense Net profits of incorporated or unincorporated business Ordinary income from Form 4797 to the extent of depreciation allowed or allowable Prizes, awards and gifts if connected with employment Profit sharing Royalties, if not derived from intangible property Salaries Severance pay Sick pay if premiums paid by employer Stipends if work required Stock bonus incentive plans Stock options as indicated on W-2 Strike benefits paid by or on employer s behalf Supplemental unemployment pay paid by employer Taxes paid by employer on employee s behalf Tips Union steward fees Vacation pay Wages NON-TAXABLE INCOME Alimony Annuities Capital gains Compensation for personal injury Compensation for property damages Copyright and patent income Disability income paid by SS or other Federal Dividends (1099-Div) Election worker compensation up to $1000 Government allotments Housing for clergy Income earned while under age 16 Income of religious, fraternal, charitable, scientific, literary or educational institutions to the extent derived from taxexempt: real estate, tangible or intangible property or activities Insurance benefits- unless connected with employment Interest income (1099-Int) Meals and lodging required on premises Military pay including National Guard and reserve Moving expense reimbursement to extent of expenses Pension income (1099-R) Royalties if derived from intangible property Sick pay if premiums paid by employee Social Security benefits Unemployment compensation payments Welfare payments Workers compensation payments Tax Preparation: We are available to prepare your individual return between the hours of 8:00 AM and 5:00 PM, Monday through Friday at the City Administration Building at 107 E Main Street. You must provide copies of all W-2s, Federal Forms 1099, Federal tax returns with all attachments and other city tax returns that support credits for tax paid to other cities. In-person City of Xenia returns for individuals are prepared free of charge. 5
Payment Information: Payments may be made via personal check or money order payable to the City of Xenia. Mail to PO Box 490, Xenia, OH 45385 or placed in the 24 hour drive-up drop box in the rear of the City Administration Building at 107 E Main Street, Xenia, OH 45385. Payments may be made using Visa/Mastercard/Discover on our website using the Pay Your Taxes page on the Tax Division page at www.explorexenia.com. Cash, personal checks, money orders and Visa/Mastercard/Discover are accepted at the A/R Division between 8:00 AM and 5:00 PM, Monday-Friday. Contact Information: Secure email is available on the Tax Division webpage at www.explorexenia.com. Phone: 937-376-7248 Fax: 937-376-8914 6