Taxation Frequently Asked Questions
- 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 up to .666% and you will owe the difference to the City of Bellefontaine. If the amount due to the City of Bellefontaine is $200.00 or more, you will be required to file/pay Quarterly estimated tax.
- 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 (RITA Form 10A) must be complete and all of the required information provided. Amounts $10.00 or less will not be refunded.
- 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.
- What supporting documents should be attached to my City tax return?
A copy of the Federal 1040.
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.
- Are students exempt from paying City income taxes?
Students under 18 are exempt from filing a Bellefontaine City tax return.
Any Student 18 and over, even if they do not work, must file a city tax return per city ordinance and state mandated law.
- 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.
- 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 wages 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.
- When are tax returns due?
he due date of the tax return is April 15. If the 15th falls on a weekend, the tax return is due the following Monday.
- 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 December 15 or interest and penalties will apply.
- 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. The first year they retire, they should file an Exemption Form. However, retirees are subject to City tax if they have other types of earned income including W-2 income, rental income, farm income, gambling/lottery income, etc.
- Who is required to file Bellefontaine City tax returns?
Bellefontaine has mandatory tax filing for everyone 18 and over. 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.
An Exemption Form must be filed by individuals if there was no income earned.
- How can I get an extension on my Bellefontaine City tax return?
If you have requested or received an extension to file, your Federal Income Tax Return, your City Return is extended as well. you need to submit a copy of your Federal Extension when you file your return. The extension only postpones the time allowed to file your annual return; payment of your balance due is still required by the annual due date.
- If a Corporation has a net operating loss, can it be carried forward to the next year?
Beginning with losses incurred in 2017, a net operating loss may be carried forward for 5 years. For losses incurred in tax years 2017, 2018, 2019, 2020 and 2021, only 50% of the carried forward loss maybe deducted in each subsequent year. No net operating losses may be carried forward for tax years 2015 and prior.
- 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.
- What is the tax rate for the City of Bellefontaine?
The Bellefontaine tax rate is 1.333%
- What are the due dates for withholding payments?
Monthly withholding payments are due on the 15th of the following month.
Quarterly payments are due on April 30, July 31, October 31 and January 31. Monthly payments are due by the 15th of the following month.
- What is the due date of the year-end withholding reconciliation?
The reconciliation is due by February 28.
- What determines whether I pay my withholding taxes on a quarterly basis or a monthly basis?
Monthly filing and payment is required if an employer has withheld Bellefontaine tax more than $2399.00 in the immediately preceding calendar year, or more than $200.00 in any one month in the immediately preceding calendar quarter. The due date for monthly filers is the 15th day of the month following the month withheld.
Quarterly filing and payment is required if an employer has withheld Bellefontaine tax $2399.00 or less in the immediately preceding calendar year, or $200.00 or less for each month in the immediately preceding calendar quarter. The due date for quarterly filers is the last day of the month following the end of the quarter.
- What is taxable/non-taxable?
· Wages, salaries and other compensation
· Bonuses, stipend and tip income
· Commissions, fees and other earned income
· Sick Pay paid by employer
· Strike Pay
· Vacation Pay
· Employee contributions to retirement plans & tax deferred annuity plan (including 401K, 403b, 457b, etc.)
· Pre-retirement distributions from retirement plans
· Profit sharing
· Contributions made on behalf of employees to deferred annuity programs
· Reimbursements in excess of deductible expenses
· Employee contributions to costs of fringe benefits
· Employer provided educational assistance and/or reimbursement (taxable to the same extent as for Federal taxation)
· Royalties if not derived from intangible property
· Stock options (taxed when exercised, valued at market price less option price on the date the option is exercised)
· Employer paid premiums for group term life insurance (taxed to the same extent as for Federal taxation)
· Compensation paid in goods or services or property usage (taxed at fair market value)
· Income from wage continuation plans (including retirement incentive plans, severance pay and golden parachute payments)
· Income from guaranteed annual wage contracts
· Prizes and gifts if connected with employment
· Director fees
· Income from jury duty
· Executor fees
· Union steward fees
· Income from partnerships, estates or trusts
· Net profits of business, professions, sole proprietorships, etc. (Schedule C)
· Net rental income (Schedule E)
· Farm net income (Schedule F)
· Sick/Disability pay paid by 3rd party
· Income received as result of a covenant not to compete
· Gambling winnings
· Spousal support
· Employer supplemental unemployment benefits (SUB pay)
· Interest income
· Welfare benefits
· Social security benefits
· Income from Federally qualified pension plans
· State unemployment benefits
· Worker’s compensation
· Proceeds of life insurance
· Active duty military pay (including National Guard)
· Earnings of person while attending high school
· Capital gains
· Clergy housing allowance
NOTE: This list is intended for reference purposes only. It may not be all inclusive and is subject to revision without notice.