Instructions For Individual Income Tax Returns Page 2
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1
2Worksheet A:
This worksheet is for the calculation of reportable wages & credits allowed for W-2 income. Each employer’s W-2 must be listed separately.
If your W-2 has multiple local taxes withheld only list the total qualifying wages once in Column A, and list each local tax, city & wages on separate lines in
Column B & C. The total in Column A should be entered on Page 1, line 1, and the total in Column F should be entered on Page 1, line 8.
EXAMPLE:
Line Worksheet A : W-2 Income
A
B
C
D
E
F
Local City tax
Credit Allowed (Lower of
W-2 Qualifying
was withheld
Local Taxes
Column D, E or 100% of
Wages
to
Local Wages
Withheld
Maximum Credit
tax withheld to
Name of Employer
(usually Box 5)
(Box 20)
(Box 18)
(Box 19)
(Col. C x 1.5%)
Sharonville)
1 ABC Co.
40000 Cincinnati
20000
420
300
300
2
Blue Ash
20000
250
300
250
3
15000 Sharonville
15000
225
225
225
4
5
6
Totals:
7
Enter Total in 7A on Page 1,
55000
775
Worksheet B - Enter the amount of 2106 expenses allowed on the Federal 1040 Schedule A. Enter the name of the employer of the corresponding W-2.
If you have more than one 2106, or the expenses are for multiple employers, enter each amount & the corresponding employer on a separate line. Enter
the amount of 3903 expenses reported on your Federal 1040 form & the employer’s name. Total the amount of all expenses and enter on Page 1, Line 5.
Only expenses reported on your federal tax return are deductible. No credit for taxes paid to other municipalities on the deducted income is permitted.
Worksheet C is for the calculation on all types of business income reported on an individual’s tax return. Do not report Partnership or S Corp income from
businesses located within the City of Sharonville on this worksheet as they are required to file separate business tax returns. S Corps located outside the
City of Sharonville are not taxable to Sharonville. The State of Ohio has made changes to the way municipalities must calculate the total taxable income
from business activity for residents. All profit and loss from businesses, regardless of location, must be combined to a net amount for taxation. Losses
carried forward are limited to income reported to Sharonville for the last three (3) tax years. Credit for taxes paid to other municipalities for these
businesses will be calculated in Worksheet D. Total income per type of Schedule can be combined for Worksheet C. Total profit (17B) minus total loss
(17C) equals the taxable business income (17D) & should be included on page 1, line 2.
Examples:
Worksheet C:
B
C
D
Net Profit/Loss from Business Activity:
Profit
Loss
Total
Schedul e C Income
5,000
200
11
Schedul e F i ncome
1,000
12
Schedul e E i ncome from Renta l Income
3,000
13
Other Schedul e E i ncome *
14
Ordi na ry Income or Los s (a tta ch Federa l 4797)
15
Pri or Yea r Los s Ca rry-Forwa rd (l i mi ted to 3 yea rs )
1,000
If positive enter this Total on Page 1,
16
Line 2
Totals
6,000
4,200
$
1,800
17
If Total Taxable Business Income is negative, no credit is allowed; current year losses may be carried forward for three years
List each municipality separately & add another page if needed
Worksheet D for Residents Only:
Attach copies of all other local tax returns for credit
Credit for Business Earnings Tax
A
B
C
D
E
Local Taxes
Maximum Credit
Credit Allowed (Lower of
Municipality taxes were paid to:
Tax Rate
Profit
paid
(Col. B x 1.5%)
Column C or D)
30.00
30.00
18 Cincinnati
2.1
2,000
42.00
12.50
15.00
12.50
19 Blue Ash
1.25
1,000
10.00
15.00
10.00
20 Loveland
1
1,000
21
22
23
24
Total Possible Credits
52.50
25
Maximum Credit Allowed: (Worksheet C, Line 17D x 1.5%)
27.00
On Worksheet D each municipality must be listed separately. Enter the name of the municipality taxes were paid to in the first column.
Taxes paid to Sharonville should only be entered in this worksheet if paid directly by a business entity. Payments made by you, the
taxpayer, should be entered on Page 1, line 9.
Column A – Enter the tax rate for the municipality
Column B - Enter the taxed profit for that municipality
Column C - Insert the amount of tax paid to the municipality
Column D –Multiply the profit in Column B x 1.5%
Column E – Enter the smaller amount of Column C or D
Line 24 – Total the amounts in Column E
Line 25 – Multiply Worksheet C Line 17D x 1.5% and enter that amount. Enter the lessor of Line 24 or 25 on Page 1, line 10
Attach copies of all municipal tax returns listed in Worksheet D to receive credit.
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