Form Fr 1172 - Individual Income Tax Return - West Union

2008 Individual Income Tax

Instructions

Village of West Union

P.O. Box 529

Mt. Orab, Ohio 45154

Phone (800) 779-3165

TAX DUE DATE: APRIL 15, 2009

The income tax rate for 2008 is 1% (.01) which is based on total earnings before any deductions including deductions for IRA's, KEOGH, Tax Deferred

(Tax Sheltered) Annuities (TDA/TSA), except section 125 (Cafeteria Plan) deductions. All earned income of residents of West Union is subject to this

tax even if you did not work inside West Union. Non-residents who work inside West Union are required to pay income tax on any income they earned

within the limits of the village.

DEFINITIONS:

Earned (Taxable) Income - all wages, salaries, commissions, net income from a business, or any other compensation for services or work performed.

Taxable income reported on W-2 forms is the larger amount from Box 1, 5, or 18. Employee contributions to Section 125 Plans (Health Care Cafeteria

Plans) are not subject to West Union local income tax.

Non-Taxable Income - Non-earned earned income that is not subject to tax includes Social Security income, retirement income, pensions, interest

received from savings or certificates of deposit, welfare, A.D.C., unemployment compensation, and military income.

Estimated Tax - an estimate of the amount of tax you may owe for 2009 based on the amount of income you expect to earn during 2009. (See section on

Estimated Tax.)

Tax Credit - a credit allowed for the payment of local income tax to another city or village. (See Tax Credits section below.)

TAX CREDITS:

The West Union Income Tax ordinance provides a tax credit for local income tax that was deducted from your earnings and paid to another city or village

(not state or federal taxes paid). The maximum amount of tax credit allowed for 2008 is 1% (.01) of gross earnings per W-2. For example, if the gross

earnings (the larger amount from Box 1, 5, or 18) reported on a W-2 was $5000, the maximum tax credit for that income would be the lesser amount of

the actual tax withheld and paid to another city or village (as indicated in Box 19 of the W-2 form) or $50.00 ($5000 times 1% (.01) = $50.00). Any tax

withheld for another city or village in excess of the maximum tax rate of 1% (.01) per W-2 cannot be used to offset or reduce the tax on other income

reported on a different W-2. For example, one of John Smith's W-2's indicated income of $10,000 with a $120 deduction to another city, and another W-2

indicated a $4,000 income with no deduction for another city or village, the maximum tax credit would be limited to 1% (.01) of the $10,000 which is

$100.00. The excess tax withheld from the one W-2 of $20.00 cannot be used to offset or reduce the tax liability of the $4,000 reported on the other W-2.

If both the husband and the wife work, any excess tax paid by one spouse to another city cannot be used to reduce the tax liability of the other spouse.

WHO MUST FILE:

Every resident of West Union with an earned income of $1,000 or more during the year is required to file an income tax return even if no tax is due. If

the amount of tax due is less than $5.00 no payment will be required but a tax return must be filed. Refunds of less than $5.00 will not be issued.

Any non-resident who had earned income of $1,000 or more within the limits of the Village of West Union and their employer did not withhold West

Union tax from their pay is required to file a West Union Income Tax Return.

ESTIMATED TAX:

Along with filing your 2008 income tax return, you will also need to complete the Declaration of Estimated Tax for 2009. Estimate the total income

before any deductions you expect to receive in 2009. Use the 2008 earnings (the amount from Line 3 on the tax return rounded to the nearest $100) and

enter it on Line 15. Multiply the 2009 estimated income by 1% (.01) and enter the result on Line 16. Indicate any amounts expected to be deducted by

your employer for West Union, and/or for another city or village on Line 17. When calculating the credit for taxes withheld for other cities or villages,

enter the actual amount of estimated tax expected to be withheld up to a maximum of 1% of the income that will be taxed by another city or village.

Excess tax withheld above the 1% tax rate cannot be included in the amount indicated on Line 17. Subtract the expected tax credits (if any) (Line 17)

from your estimated West Union tax liability along with any excess taxes paid in 2008 that is to be credited towards your 2009 tax liability (Line 18) to

determine the balance of the estimated tax due for 2009 on Line 19. If the amount of your estimated tax on Line 19is $100 or more you may pay up to

the full amount of this estimated tax when you file your return, otherwise, you must pay at least one-fourth (1/4) with the balance being paid in quarterly

installments. If your estimated tax is less than $100, you are not required to pay estimated tax, but you may elect to do so. For assistance, contact the

Tax Bureau or use the E-Z File! method.

FILING DEADLINE:

The filing deadline for submitting your West Union Income Tax return is April 15, 2009. You may request an extension for filing your tax return if you

are unable to meet this deadline. Extensions can be for up to six months, or one month after the deadline for any federal extension granted. Requests for

extensions must be made in writing prior to the filing deadline. Any West Union Tax Return received after the April 15 deadline will be subject to late

filing fees and interest charges. Any tax not paid by the April 15 is subject to interest charges.

PART-YEAR RESIDENTS

If you lived in West Union only part of the year, you are only subject to the West Union Income Tax for the portion of time you were a resident inside the

Village of West Union. When completing your West Union Income Tax Return, enter the date you moved into or out of West Union in the boxes

provided to the right of your name and address. If you moved out of West Union, please correct your mailing address to reflect the correct address. In

determining the portion of income that is subject to West Union tax, you can use one of two methods. If you have W-2 forms or paycheck stubs that

indicate the amount of earnings subject to West Union tax, you can use them to calculate your West Union tax. If you do not have these documents, you

can divide your total annual salary (the larger amount indicated in Box 1, 5, or 18 of each W-2 form) by twelve to determine the average monthly income.

Next multiply the average monthly income by the number of months you were a resident of West Union. When completing the tax return, enter the total

income earned as indicated on your W-2 forms on Line 1. Next on Line 26 (Page 2), enter the words “Non-resident income” and indicate in the amount