FREQUENTLY ASKED QUESTIONS

 

Ø      If I work in a City with a tax rate lower than 1.333%, do I get credit for the other City taxes paid?

            You get credit for the other City taxes paid but you will owe the difference to the City of Bellefontaine.  If you work in a City with a tax rate higher than 1.333%, we will give you credit up to our rate of 1.333% for each city worked in.

Ø      If I file my Bellefontaine City tax return and am due a refund, when can I expect to receive the refund?

            The City has 90 days from the date the refund request is received to review your request.  If your refund is approved, a check will be mailed to you.  The refund request must be complete and all of the required information provided.

Ø      If I am a Bellefontaine resident and work in an unincorporated area that has no municipal income tax, do I have a local tax obligation?

            Yes, if you are a resident of Bellefontaine, all of your income is taxable regardless of where it is earned.  If no municipal taxes are withheld, it is your responsibility to pay these taxes.  You are also required to file a Declaration of estimated tax and pay your City income taxes quarterly.

Ø      What supporting documents should be attached to my City tax return?

            All W-2 forms and Federal schedules containing any information on the City return should be attached.  Examples:  Schedule C, Schedule E, Schedule K-1, Form 1065, Form 1120 or 1120S, Form 2106, Schedule A, Schedule F, Form 1099-Misc., etc.

Ø      Are students exempt from paying City income taxes?

            High School students are not required to file a City return.  If they had taxes withheld, they can file for a refund.  All taxes withheld while still in high school are refundable as long as a copy of an I.D. (birth certificate or driver’s license) is attached along with the W-2 form.  Upon graduation from high school all income is taxable.

Ø      If I have a Schedule E for rental properties or a Schedule C for self-employment which shows a loss, do I still have to attach it to my City return?

            Yes, all Federal Schedules must be attached even if a loss is shown.  These losses cannot be subtracted from W-2 income but can offset other Federal Schedule gains.

Ø      My W-2 shows differing amounts in the Federal income box, local wage box and Medicare wage box.  Which amount should I use as my taxable wage for Bellefontaine? 

            The City taxes everything included in the Medicare wage box.  If the local wage is less, it may be because taxes weren’t withheld for the entire year.  Normally the local wage amount should be the same as the Medicare wage amount.

Ø      When are tax returns due?

            The due date of the tax return is April 15.  If the 15^th falls on a weekend, the tax return is due the following Monday.

Ø      When are estimate payments required?

            Estimate payments are required if no City taxes are withheld or if a lesser amount of City taxes are withheld.  The City ordinance states that 90% of your tax liability has to be paid by January 31 or interest and penalties will apply.

Ø      Are retired persons required to file and pay City taxes?

            If their only income is from pension, interest, dividends and Social Security, they are not required to file or pay City taxes.  However, retirees are subject to City tax if they have other types of earned income including W-2 income, rental income, farm income, etc. 

Ø      Who is required to file Bellefontaine City tax returns?

            Bellefontaine has mandatory tax filing.  All resident individuals who have income subject to the tax whether or not it is withheld must file a Bellefontaine City income tax return.  An individual must file even if no tax is due.  Failure to do so will result in penalties being charged.  All non-resident individuals whose Bellefontaine City taxable income was not fully withheld and/or who engage in a business or profession in Bellefontaine must file a return.  All Associations, Corporations, Fiduciaries, Partnerships, LLC’s deriving income (or losses) from work done or services performed and business conducted in Bellefontaine are required to file a return.

Ø      How can I get an extension on my Bellefontaine City tax return?

            We will grant an extension only if we receive a copy of the Application for Federal Extension by the original due date of the tax return.  No extension will be granted if delinquent taxes are owed.

Ø      If a Corporation has a net operating loss, can it be carried forward to the next year?

            No, Bellefontaine does not allow new operating losses to be carried forward.

Ø      If I was a resident of Bellefontaine for a partial year, am I required to file a tax return?

            Yes, you will need to file and pay for the number of months that you actually lived in the City of Bellefontaine. 

Ø      What is the tax rate for the City of Bellefontaine?

The Bellefontaine tax rate is 1.333%

Ø      What are the due dates for withholding payments?

Quarterly payments are due on April 30, July 31, October 31 and January 31.  Monthly payments are due by the 15^th of the following month.

Ø      What is the due date of the year-end withholding reconciliation?

The reconciliation is due by February 28.

Ø      What determines whether I pay my withholding taxes on a quarterly basis or a monthly basis?

If the tax withheld exceeds $100.00 per month (or $300 per quarter), you will be required to pay the taxes monthly.

 

 

 

Updated:  Sept. 27, 2007