Instructions For Ir-Ez Form - 2006 printable pdf download

READ BEFORE COMPLETING THE TAX RETURN

INSTRUCTIONS FOR 2006 MUNICIPAL IR-EZ FORM

This IR-EZ Form is for residents with W-2 income only. If you have any other taxable income such as rental income, business

income, or gambling winnings, you must file on the personal income tax return - Form IR-LONG from our website at

IDENTIFICATION SECTION

Enter your account number, name, and address in the section provided if it is not already printed. Make any corrections.

If you moved into or out of the city during the tax year, enter the date on the tax form in the space provided.

COMPUTATION SECTION

Line 1. (If Part Time Resident – see next paragraph) Enter the total qualifying wages from all W-2 forms for the tax year. Usually

the amount in Box 5 of the W-2 is the qualifying wage. INCOME TAXABLE BY THE MUNICIPALITY MAY DIFFER FROM

INCOME TAXED BY THE IRS. An example of wages subject to tax not included in Box 5 would be if the employee was hired

before April 1, 1986 by a political subdivision or school district. In these situations, qualifying wages should be in Box 1 plus any

deferred compensation shown normally or should be in Box 12 or 13. Please attach all W-2s.

PART TIME RESIDENT – If you moved out of the city during the year, use these instructions:

Line 1. Estimate (to the nearest whole month) the number of months you lived inside the city limits. Total your qualifying wages

(usually Box 5 of W-2). Write down the total to the left of Line 1. Divide that number by 12. Multiply the result by the total to the

left of Line 1 (total qualifying wages). Enter the sum on Line 1 of tax form. Be sure to fill in PART TIME RESIDENT section on tax

form.

Line 2. Multiply Line 1 by 2% for Hamilton and Butler County Annex, 1.75% for Oxford and New Miami, or 1.5% for Phillipsburg,

West Milton, and Eaton.

Line 3. Enter taxes withheld by your employer(s) specifically for your resident city. If your place of employment is not your resident

city and no resident city tax has been withheld enter zero on this line. Your W-2 form(s) should identify your local income tax

withheld. For local income tax withheld for a city other than your resident city see Line 4.

Line 4. Enter local income taxes withheld by your employer(s) OTHER THAN your resident city. If your W-2(s) is marked

“Various” or “All Cities”, you should request an itemized breakdown by city from your employer(s). Attach the itemized list to your

tax return. School tax is not allowed as a credit on a city tax return. The only city that allows county tax as a credit is Eaton.

Eaton allows credit for county tax based on income. For Hamilton(2%), Butler County Annex(2%), Oxford(1.75%), Eaton (1.5%), or

New Miami (1.75%) you are permitted tax credit for other municipal tax withheld up to the tax rate of your resident municipality.

Example: A resident of Oxford who has a job in Hamilton and earns $20,000 would receive credit for $350 in Hamilton taxes paid

even though $400 was withheld for Hamilton. Phillipsburg and West Milton residents are permitted a tax credit for other municipal

income tax up to 1% of the same wages withheld on for other cities. Using the same figures for a resident of Phillipsburg or West

Milton, the taxpayer would receive credit of $200 because the credit is limited to 1%. This is because under Ohio law taxes are

withheld by the employer based on the municipality where the work is performed.

*Refunds of tax withheld or paid to another city: You cannot take credit for taxes that will be refunded to you.

Line 5. Line 2 minus Lines 3 and 4.

Line 6. Estimated Tax paid plus prior year overpayments carried forward for the current tax year.

Line 7. Line 5 minus Line 6. If negative, see Line 8. If positive and the sum is greater than one dollar ($1.00), this is your

outstanding tax balance for 2006. Full payment must be received on or before April 16, 2007. Any tax remaining unpaid after

April 16, 2007 is subject to interest and penalties per the Income Tax Ordinance.

Line 7A. To be filled in by the Tax Office.

Line 8. If Line 7 is negative, you have an overpayment. Specify how the overpayment should be allocated. Credited to next year’s

tax liability (Line 13), or refunded. If the sum is less than one dollar ($1.00), no refund or credit will be issued.

Instructions For Ir-Ez Form - 2006