Revenue Collections: Tax - Tax Division
- Taxable Income
- Non-Taxable Income
- Business Payment Option
- FAQ
The Income Tax Division is responsible for administering the Income Tax Ordinance. Employees of the division are available between the hours of 8:00 A.M. and 5:00 P.M. Monday through Friday to provide assistance to taxpayers in the filing of income tax returns or other Sidney income tax documents and/or to provide answers to questions relating to the tax.
The City of Sidney enacted a municipal income tax 1957. The tax is applicable to all residents of the city as well as all non-residents working within the city and all businesses located or performing services here. The income tax rate of 1.5% is levied upon all gross wages, salaries and other compensation, and all business net profits.
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Businesses Only
Electronic Payment and Filing Options
How do I pay taxes electronically?
You can make an Electronic Funds Transfer (EFT) of money from one financial institution to another through either ACH Debit or ACH Credit.
ACH (Automated Clearing House) is a nationwide network used by the Federal Reserve to handle electronic payments. Electronic payments are a safe and efficient way to make tax payments.
There are two basic methods of paying by EFT – ACH Debit and ACH Credit.
When you use ACH Debit, you authorize how much and when the City can take money from your bank account to pay your taxes.
When you use ACH Credit, you tell your bank how much and when to send money to the City to pay your taxes.
Tell me more about each method . . .
ACH Debit
The City of Sidney accepts ACH Debits via the Ohio Business Gateway (OBG).
OBG is a nationally-recognized, collaborative initiative of state and
local government agencies. OBG’s electronic filing services offer
Ohio's businesses a time- and money-saving online filing and payment system.
OBG provides businesses with an easier means to comply with tax filing
requirements. It reduces or eliminates the postage expenses, repetitious
data entry, mathematical mistakes, and potential for overlooking required
data that typically accompany paper-based methods.
| You may utilize ACH Debit to pay for the following taxes: | ||
| Business Income (Net Profits) Taxes | ||
| Estimated payments | ||
| Payment made with filing of annual return | ||
| Employer monthly or quarterly withholding payments | ||
ACH Debit is typically free. Neither the City of Sidney nor OBG charge additional fees for its use. Verify your fee structure with your own particular financial institution.
To sign up for ACH Debit, simply log on to the Ohio Business Gateway
website at:
https://ohiobusinessgateway.ohio.gov
| If paying by ACH Debit (via the Ohio Business Gateway), you won’t need to file any additional paperwork with the City of Sidney for the following: | ||
| Business Income (Net Profits) Taxes | ||
| Estimated Payments | ||
| Extension Requests | ||
| Income (Net Profits) Tax Returns | ||
| Employer Withholding Taxes | ||
| Withholding Returns and Payments | ||
ACH Credit
The ACH Credit Program permits you, as a taxpayer, to electronically pay
(1) your monthly or quarterly withholding tax payments, and/or (2) your
quarterly estimated tax payments (for your business income (net profits)
taxes). You are able to select the settlement date on which your remittance
will be deducted from your bank account. With this program, you will need
to contact your bank to have them send the funds to the City of Sidney.
Further, if you are able to transmit certain Required Addendum Information along with your electronic payment, you will satisfy your coupon filing requirement as well. Only the Annual Withholding Reconciliation (Form KW-3) and W-2's need to be mailed to the City; all monthly or quarterly withholding returns and payments are transmitted electronically.
The City of Sidney does not charge any fees for its use. Bank fees for ACH Credits vary, depending on your bank. Some banks offer software that allows you to initiate your own payments from your computer. Others process the ACH Credits for you.
To sign up to pay by ACH Credit, completing an ACH Credit Authorization Form, print, and then mail, email or fax the completed form to our office at:
City of Sidney
Income Tax
201 W. Poplar St.
Sidney, OH 45365
Fax (937) 498-8149
Email slukey@sidneyoh.com
Once we receive your registration form, we will send to you the file layout specifications that you will need for preparation of your ACH Credit file transmissions.
For additional information or assistance, please contact Susan Lukey, Income Tax Administrator, at (937) 498-8111 or slukey@sidneyoh.com.
NEW for 2009!! MANDATORY FILING!!
Beginning with the 2009 tax year (due in 2010), every Sidney resident 18 years of age and older must file a Sidney income tax return, even if Sidney income tax is fully withheld.
Who is required to file a Sidney Income Tax Return?
- ALL SIDNEY RESIDENTS and partial year residents ages 18 and over**
- ALL SIDNEY RESIDENTS ages 16 and 17 only if their tax is not completely withheld for SIDNEY at the rate of 1.5%
- RETIRED RESIDENTS if they have rental, business or other income taxable to Sidney
- EVERY BUSINESS ENTITY that conducts business within the City of Sidney
- EVERY NON-RESIDENT WHO ENGAGES IN BUSINESS or other activity within the City of Sidney, including, but not limited to rental of real or personal property. Non-residents who are employed within the City of Sidney, but whose Sidney City income tax is not fully withheld by their employer, must also file a return.
- ALL PASS-THROUGH ENTITIES (any class of entity the income or profits from which are given pass-through treatment under the Internal Revenue Code) (i.e. partnerships, corporations, s-corporations) shall be taxed at the hands of the entity.
** Exemption Available - Retired or permanently disabled individuals who have no wages, rental, business or other income taxable to Sidney may obtain exemption from filing a Sidney tax return. To receive exemption, complete a one-time Exemption Form (with a copy of page 1 of your Federal Form 1040, if applicable) and submit to our office. Please note that if your status changes and you again become employed or earn Sidney taxable income, you will be required to file a Sidney tax return for any full/partial year in which such income is earned. There is no age limit, according to the Ohio Revised Code, for paying municipal taxes on otherwise taxable earned income.
Are students exempt from Sidney income tax? Exempt from filing a return?
Being a student has no effect on your Sidney income tax liability. All those age 16 years or older are subject to Sidney income tax on their Sidney taxable income. However, if you are ages 16 or 17 and your employer has withheld 1.5% for Sidney income tax, you are exempt from filing a Sidney tax return.
What schedules or supporting documents must I attach to my return?
The first page of your Federal Form 1040 is REQUIRED to be attached to be considered a “complete” return. Other required Federal schedules or forms would include W-2’s, Form 1099, Schedule C (self-employment), Schedule E (rental income), Schedule F (farming income), Schedule K, Schedule K-1, Form 1065, Form 1120, Form 2106, and Schedule A (if deducting expenses from Form 2106).
I have a rental property that shows a loss each year after expenses. Should I include that in my return?
Yes, anyone having a rental property located in Sidney is required to file a return and include a copy of their Schedule E or applicable schedule of income and expenses for the rental. A return is required each year even though losses may have been incurred. Also, any Sidney residents having rental properties are required to file on those properties no matter where the properties are located.
May I offset my self-employment losses, rental losses or other losses against my wage income?
Beginning with tax year 2009, business/rental losses may not be used to offset salaries, wages, commissions or other compensation. If a taxpayer is engaged in two or more taxable business activities to be included in the same return, the net loss of one business activity (not reportable to another municipality) may be used to offset the profits of another for purposes of arriving at overall net profits or net operating loss. Net operating losses may be carried forward and utilized for up to five (5) years.
My W-2 has differing amounts in the federal income box, the local income box and the Medicare box. Which amount should I show as taxable wages for my city income tax return?
Sidney levies its 1.5% income tax on “qualifying wages”. In terms of which box on your Form W-2 represents “qualifying wages” for Sidney income tax purposes, it is generally the larger of Box 5 or Box 18. If your W-2’s are marked “various” or “all cities” in the Local Tax Withheld Line, you should request an itemized breakdown by city from your employer(s). You must attach this to your return. If you have questions, please contact our office.
I live in Sidney but work in another city and have tax withheld for that city. Do I get credit for that against my Sidney tax liability?
Yes, credit is allowed for taxes paid to another city. The allowable credit is 1.5% of the amount paid to the other city.
When are tax returns due?
Individuals and calendar-year businesses are required to file by April 15th. Fiscal-year businesses are required to file on the 15th day of the fourth month following the end of their fiscal year.
What are the penalties and interest if I don't file?
Failure to pay taxes when due will result in penalty and interest of 1.5% each per month, or fraction thereof, to be assessed from the original due date. Beginning in 2009, there is a late filing penalty. If you file your return after its due date (or extended due date, if applicable), you will be subject to a $25 late filing fee, if filed within 60 days after the due date. If filed more than 60 days late, the fee is $50.
Is there any forgiveness of penalty or interest?
For a limited time period (through May 31, 2010), the City is offering forgiveness of penalty and interest in exchange for payment of back taxes. Our income tax amnesty program gives you an opportunity to file and pay income taxes for tax years 2008 and prior without penalty and interest. In doing so, you avoid the possibility of court proceedings. This chance to “catch up” includes both taxes due on returns that have not been previously filed and taxes due on returns previously filed but not paid. Contact our office for more information.
Who must file & pay estimated tax payments?
While not all inclusive, generally you must file and pay quarterly estimated tax payments if any of the following applies to you:
- You are a Sidney resident & earn compensation outside of Sidney that was not subject to taxation by another municipality or you earned compensation in a municipality with a municipal income tax rate of less than 1.5%;
- You are a Sidney resident and are self employed (filing a Schedule C on your Federal tax return) or receive a Form 1099;
- You are a NOT a Sidney resident but had self-employment income earned in Sidney;
- You have any similar type of situation where your income is not fully withheld upon (at 1.5%) & you would have a tax balance due to Sidney.
When are estimate payments due?
Quarterly estimates are due on or before April 15, July 31, October 31 and January 31 for individuals (those filing using their social security number). For businesses (those filing using their Federal ID number), quarterly estimates are due on or before April 15, June 15, September 15, and December 15. Estimated payments for fiscal year businesses are due on the 15th day of the fourth, sixth, ninth and twelfth months after the beginning of their taxable year.
How much estimated tax am I required to pay?
To avoid being assessed an underestimation penalty, you must pay in the lesser of (1) 90% of the current tax year’s tax liability (through withholdings, estimated payments, or prior year overpayments) or (2) 100% of the prior year’s tax liability (through withholdings, estimated payments, or prior year overpayments). Contact our office for more assistance in calculating this amount.
Can I get help completing my Sidney Tax Return? We will gladly help you prepare your return for you, and THERE IS NO CHARGE FOR THIS SERVICE. Simply bring your tax records (e.g. Federal 1040, all W-2’s, 1099-Misc, and other Federal schedules) and this package to our office. We highly recommend having your return prepared by our staff prior to March 31, 2010. Waiting until after this date may result in long lines or extended waiting for our office staff to assist with the preparation of your return.