Instructions For Municipality Ir Form (Page 2 of 5) in pdf

INSTRUCTIONS FOR MUNICIPALITY IR FORM

Page 2

Section A. Enter the Profit or Loss from any Business Owned. Please attach copies of Federal Schedule C or Schedule

C-EZ.

Section B. Enter the amounts for each rental property with monthly rents in excess of $250 (Phillipsburg, West Milton,

and Eaton $100). In lieu of completing Section B, please attach Federal Schedule(s) E, Page 1.

Section C. Other taxable income or loss including gambling winnings. Please attach a copy of Federal Schedule(s) E, Page

2, Federal Schedule F, 4797, 6252, etc. and any related schedules. Note: If rental property is sold or exchanged please

attach Form 4797 or Form 8824 if applicable. Depreciation is subject to recapture up to the amount of gain for all

jurisdictions except Eaton, Phillipsburg, and West Milton.

NOTE FOR HAMILTON RESIDENTS ONLY:

PLEASE ENTER THE TOTAL OF GAMBLING AND PRIZE WINNINGS AS REPORTED ON IRS FORM W-2G

OR FORM 5754. GAMBLING LOSSES ARE NOT ALLOWABLE AS A DEDUCTION AGAINST WINNINGS.

BUSINESS LOSSES AND RENTAL LOSSES ARE NOT ALLOWABLE AS DEDUCTIONS AGAINST

GAMBLING WINNINGS.

If the total of Sections A through C is positive enter the amount here and on Line 2 of Page 1.

If the total of Sections A through C is negative enter the amount here and on Line 2A of Page 1.

Line 2 A. To be completed only if you are required to complete sections A through C on Page 2. A net operating loss by

a business or profession is not deductible from W-2 wages, but may be carried forward for three (3) years for

Hamilton and five (5) years for Butler County Annex, New Miami, and Oxford residents. New Miami, Phillipsburg,

West Milton, and Eaton allow losses against W-2 wages. Phillipsburg, West Milton, and Eaton allow no loss carry

forward.

Line 2 B. Enter the allocable losses per previous income tax returns. Hamilton's allocable loss carry forward allowed is

three (3) years. Butler County Annex, Oxford, and New Miami's allocable loss carry forward is five (5) years. For

Phillipsburg, West Milton, and Eaton taxpayers, enter $0 since allocable loss carry forward is zero (0) years.

Line 2 C. Total lines 2A and 2B.

Line 2 D. For Hamilton, Butler County Annex, and Oxford residents, if Line 2 less Line 2C is a negative number, enter $0

on Line 2D. Eaton, New Miami, Phillipsburg, and West Milton residents enter Line 2 less Line 2C.

Line 3. Enter sum of Lines 1 and 2D less line 1A.

Line 4. Multiply Line 3 by 2% for Hamilton and Butler County Annex, 1.75% for Oxford and New Miami, and 1.5% for

Phillipsburg, West Milton, and Eaton.

Line 5A. Enter taxes withheld by your employer(s) specifically for your resident Municipality of Hamilton, Butler County

Annex, Oxford, Phillipsburg, West Milton, Eaton, or New Miami. If your place of employment is not in Hamilton, Butler

County Annex, Oxford, Eaton, New Miami, or in a non-taxing location, any taxes withheld from your wages by your

employer(s) will be for the municipality(ies) in which you actually work. Your W-2 form(s) should identify the local

taxing municipality(ies).

Line 5B. Enter tax credit for taxes withheld by your employer(s) for municipalities OTHER THAN your resident

Municipality of Hamilton, Butler County Annex, Oxford, Phillipsburg, West Milton, Eaton, or New Miami. You are

permitted tax credit for other municipality tax withheld up to the tax rate of your resident municipality (2.0% for Hamilton

and Butler County Annex, 1.75% for Oxford and New Miami, and 1.5% for Eaton). For 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. This is because under Ohio law taxes are withheld by the employer based on the municipality

where the work is performed.

Phillipsburg and West Milton residents are permitted a tax credit for other

municipalities up to 1% of the wages withheld on for other municipalities. If your W-2(s) is marked “Various” or “All

Cities”, you should request an itemized breakdown by municipality from your employer(s). Attach the itemized list to your

tax return. School tax is not allowed as a credit on a municipality tax return. No county tax is allowed except for Eaton.

Refunds of tax withheld or paid to another municipality: You cannot take credit for taxes that will be refunded to

you.

Instructions For Municipality Ir Form Page 2

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