Instructions For Individual Income Tax Returns printable pdf download

Instructions for Individual Income Tax Returns

All Sharonville residents age 18 & older, and those under 18 who have municipal taxable income, are required to file a City of Sharonville tax return each

year regardless of whether or not any tax is due. All non-residents with income taxable to the City of Sharonville that is not fully withheld by an employer

are also required to file a Sharonville tax return.

Ohio state law now requires your Sharonville tax return to include a copy of your Federal form 1040 and all W-2s. To receive all

available deductions and credits please attach all applicable federal schedules, forms, and any other filed local tax returns.

Taxable income includes:

-Qualifying wages per IRS tax code section 3121(a). It includes many different types of income, including but not limited to wages, sick pay,

vacation pay, commissions, severance pay, settlements, bonuses, fringe benefits, short-term disability pay, stock options and deferred

compensation. It is usually found in Box 5 (Medicare wages) on your W-2, however there are some exceptions.

-Other Income (generally listed on line 21 of your Federal 1040 tax form) such as gambling winnings, H.S.A. and scholarship distributions,

director’s fees, jury duty income and prize winnings.

-The net of all profit and losses from profession and/or business operations.

Income which is NOT taxable includes interest, dividends, capital gains (unless considered ordinary income), alimony received, military pay and

allowances, Social Security benefits, welfare benefits, unemployment insurance benefits, workers compensation, proceeds from qualified IRS defined

retirement plans and income specifically prohibited from taxation.

Line 1.

Enter total qualifying wages from all W-2 forms for the tax year (generally located in Box 5 of each W-2). If you filled out Worksheet A on page 2

enter the amount from box 7A.

Line 2.

If you have business income (Federal Schedules C, E, F, 4797, K-1) please complete Worksheet C on page 2 to calculate your taxable income.

After completing Worksheet C enter the total from Line 17 column D on this line.

Line 3.

Enter all other taxable compensation including, but not limited to, 1099-Misc income, gambling & prize winnings, and taxable H.S.A. withdraws,

generally included on line 21 of the Federal 1040 form. Please include copies of any forms which show the income reported. If you are not

including income from line 21 of your federal form, please provide an explanation as to why it is not taxable.

Line 4

Total all income from lines 1-3.

Line 5

Fill out Worksheet B on Page 2 listing deductions for Federal Schedule(s) 2106 and 3903 and list the corresponding employer. 2106 expenses

must be deducted on your federal tax return and are subject to the 2% federal reduction. 3903 deductions are only allowed if included in your

taxable income. Both of these deductions may reduce the credit allowed on Line 8.

Line 6

Subtract Line 5 from Line 4 to calculate taxable income

Line

Multiply Line 6 by 1.5% to calculate the amount of tax due

Line 8.

Enter taxes withheld by your employer(s) subject to the maximum limitation of 1.5%. No credit is given for school taxes or county taxes paid. If

you have filled out Worksheet A enter the total in Box 7F.

If you took deductions on Line 5 for 2106 or 3903 expenses you must subtract the amount of those deductions from the W-2 wages earned,

which reduces the allowable credit for that W-2. To calculate the allowable credit, subtract the deduction taken from the Box 5 wages and

multiply the result by the lessor of the tax rate withheld or 1.5%. If taxes were withheld to the City of Sharonville there is no reduction in credit.

Line 9.

Enter all income taxes paid directly to the City of Sharonville, but not reported on a W-2.

Line 10. Enter the credit for taxes paid to municipalities for Business Income from Worksheet D (the lessor of line 24 or 25) then add any taxes paid to

municipalities for other income reported on Page 1, Line 3 up to the maximum 1.5%.

Line 11. Enter any prior year overpayments.

Line 12

Total lines 8, 9, 10, 11 to calculate the total amount of allowed credit.

Line 13

If line 7 is greater than line 12, enter the tax balance due

Penalty and interest will be calculated and added by the tax office.

If filing late, a fee of $25 per month, or portion thereof, is also due.

Line 14

Total of Line 13 tax, plus any known penalty, interest or late fee.

Line 15

If line 7 is less than Line 12 and at least $10 enter the overpayment on this line.

Line 16

Enter the amounts to be refunded and/or credited to next year’s tax estimate (only amounts of $10 or more will be processed)

Line 17

Estimated tax payments are required by every taxpayer who reasonably expects to have tax due of $200 or more which will not be withheld by

an employer, or is due based on business or other types of income. Enter all income on this line and multiply it by 1.5% for your total tax liability.

Lines 18-21 Enter any expected withholding payments, credits for payments to another municipality & any credited overpayment from line 16.

Line 22

Total lines 19, 20 and 21

Line 23

Subtract line 22 from line 17 for the amount of estimated taxes due for the year. To avoid penalties you must owe less than $200, pay 100% of

the prior year’s liability, or pay 90% of the current year’s liability.

Line 24

If line 23 is $200 or more a minimum of 90% of this year’s liability must be paid by December 15, 2017 to avoid penalties.

Line 25

Add line 14 plus line 24 for the total balance due with your tax return. Failure to pay the full amount may result in interest & penalties.

Please sign & date the tax return on the right. If a preparer has completed the form they must sign & print their contact information on the left side of the

form. Please check the box in the center to allow us to contact your preparer directly regarding any questions or missing information on your return.