|
|
|
|
|
 |
 |
 |
 |
 |
 |
|
|
Frequently Asked Tax Questions of the City of Alliance
#Q1 Do I have to file an Alliance Income tax return? A – Yes, if you were a resident of Alliance during any part of 2007, had earned income, and are 16 years of age or over. You must also file if you had a business or rental property located inside the city even if you are not a resident. - No, if you are retired and your only source of income is retirement earnings (pensions, social security, etc.), if you are permanently disabled, if you worked in Alliance but were not a resident and had Alliance tax withheld, if you are on active duty in the military. #Q2 – I won money in the Ohio Lottery. Do I need to file and pay taxes on the winnings? A – Lottery and gambling winnings are taxable to the city of Alliance beginning July 15, 2002. Report any amount won after that date on line 2 on the front of the income tax form and include it with your other earnings. #Q3 – Where and when do I file? A – File on or before Tuesday, April 15, 2008, for calendar year 2007. For fiscal filers, returns are due on the 15th day of the fourth month following the close of the fiscal year. Returns may be mailed to: City Income Tax Department, P.O. Box 2025, Alliance, OH 44601. They can also be filed in person at the Income Tax Office on the first floor of the City Administration building at 504 East Main Street, Alliance, Ohio. Office hours are Monday through Friday, 8:30 a.m. to 4:30 p.m. Back to Top#Q4 – What if I need more time to file? A – An extension to November 30, 2008 will be granted if additional time is needed to file. City regulations are the same as those of the IRS; that is, requests must be made in writing prior to the filing deadline. A copy of the federal extension form (4868) is also acceptable. CAUTION – An extension of time to file is not an extension of time to pay. If you will owe tax, the balance must be paid with the extension to avoid penalties and interest. Back to Top#Q5 – I am a student at Mount Union College. Am I considered a resident of Alliance, and do I need to file a city income tax return? A – You are not considered a resident of Alliance solely because of your student status at Mount Union College. If you retain your parents’ residence as your home residence, you are not required to file in Alliance. However, you should file with your home city if so required there. Back to Top#Q6 – I was a part-year resident of Alliance; how do I determine my taxable income? A – Part-year residents must apportion their income and report only that amount earned while a resident. Back to Top#Q7 – I didn’t get a tax return. Where can I pick up one? A – Tax forms are available at the Income Tax Office and at Rodman Library’s Carnation Main office located at 215 West Broadway. Forms may also be downloaded from the Internet or from the City of Alliance web page; the address is http://WWW. CITYOFALLIANCE.COM. Photocopies of the tax return are accepted as well as computer-generated forms. Back to Top#Q8 – I got a tax return, but I am not required to file. What should I do? A – Contact the Income Tax Office so your records can be corrected and to avoid non-filing penalties. Back to Top#Q9 – I live in the Marlington School District, but I received a tax return from Alliance. Why do I have to file in Alliance? A – Some areas in Alliance are located inside the city limits and also within the Marlington School District. Residents living there must file a city return. If you are in doubt as to whether your address is located inside the city limits, contact the City Income Tax Office. Back to Top#Q10 – What if I owe tax and cannot pay the balance when I file? A – File the tax return on or before April 15, 2008, and contact the Income Tax Department to make payment arrangements. Late filing penalties will then be avoided. Delinquent tax balances are assessed penalties of one percent per month and interest of one percent per month. Back to Top#Q11 – I didn’t earn enough income to be required to file a federal tax return. Must I still file with the City of Alliance? A – Yes, because there is a mandatory filing requirement for all residents. A tax return must be filed regardless of the amount of income earned or the amount of tax due. Failure to file will result in an automatic penalty of $25.00. Back to Top#Q12 – I filed jointly with my spouse on the state and federal forms; do I have to file the same way with the City? A – City returns may be filed jointly with your spouse or individually. There is no requirement to file the same way as was filed with the IRS or state. Back to Top#Q13 – I pay more tax where I work than I get credit for when I file the Alliance tax return. Can I get the extra amount refunded to me? A – Taxes are paid where one works, and the tax returns are filed where one lives. Because your city tax remains in the city where it was earned, Alliance does not receive this money and therefore cannot refund it. Back to Top#Q14 – I pay tax where I work, and I have to pay again when I file my taxes in Alliance because I live here. Isn’t that double taxation? A – Taxpayers are allowed credit for tax paid to other municipalities where they work, not to exceed one and three quarter percent (1.75%) of income earned in other municipalities. There is no reciprocal agreement among Cities, and Alliance receives no money from other cities where residents work. Therefore, the City is requiring all taxpayers to pay a portion of tax to Alliance. EXAMPLE 1. If last year you lived in Alliance and worked in Canton where you earned $10,000, you would have paid Canton $200.00 in tax (2.00% of $10,000). The tax due Alliance is also $200.00 You will be given credit for $175.00 leaving a balance of $25.00 owed to the City of Alliance. EXAMPLE 2. If last year you lived in Alliance and you worked in Salem where you earned $10,000, you would have paid Salem $100.00 in tax (1.00% of 10,000). The tax due Alliance is $200.00 You will be given a credit for the full $100.00 because the tax rate is less than one and three quarter percent (1.75%), and you will have a balance due of $100.00 to the City of Alliance. #Q15 – My W-2 has several different amounts for wages I earned. Which one should I use on my city tax return? A – Use the amount in the local wages box on your W-2 or the highest amount listed elsewhere on the W-2, which usually is Medicare wages in Box #5. Back to Top#Q16 – Why are city taxable wages sometimes higher than federal taxable wages? A – City wages include all deferred amounts of income, 401K plans, Keoghs, etc, because these amounts are considered taxable when the money is earned. These amounts will be taxed by IRS and the State at a later date, probably when the taxpayer retires. Back to Top#Q17 – Do I have to pay estimated tax in 2008? A – If your 2007 tax liability after withholding was greater than $100, you must pay estimated tax in 2008. Complete the bottom portion of the tax return and remit the first quarterly payment with your return and any additional tax due. You will be billed for the remaining three quarters, due July 31, 2008, October 31, 2008, and January 31, 2009. Back to Top#Q18 – My employer won’t withhold taxes for Alliance. Why can’t the income tax office make them withhold these taxes? A – Employers located outside of the Alliance city limits are not required to withhold city tax from their employees. Although many employers will withhold as a courtesy to their employees, the Alliance tax office cannot force them to do so because they are located outside of the Alliance tax jurisdiction. It is best to talk with your employer about the situation. Back to Top#Q19 – How do I know if my estimated payments are correct, and am I paying on money I haven’t yet earned? A – Since estimated payments are due after the end of the quarter, you are paying on money you have already earned. To determine whether your payment is correct, multiply your gross earnings for the quarter by the Alliance tax rate of 2.00 percent, subtracting any withholding that was made. This amount is your estimated payment for the quarter. Because estimates are projections of your tax liability for the year, they can be adjusted up or down if your income changes. Back to Top#Q20 – What will happen if I overpay estimates? Can I get the excess back? A – The excess amount can either be refunded to you or credited to your estimated tax for the following year. Back to Top#Q21 – I am still confused by the income tax form and have more questions. Where can I get help? A – City tax personnel will be happy to assist you with any questions or to fill out the income tax form for you. Simply stop by the office or call (330) 821-9190 during office hours of 8:30 a.m. to 4:30 p.m. daily. No appointment is necessary and the service is entirely free. Back to TopFor further information, contact the Income Tax Office at 330-821-9190 |