So you are 18, off to college and came home last summer and worked… and your residence is still where you grew up… you need to check the local tax requirements … you may need to file a tax form even if you did not work!
I was at H&R Block last night and met 2 college students who did not file and were paying around $150 penalty for each year they did not file and were there to file the proper paperwork. One of the college students had worked last summer and the other did not. Both received notices about not filing and their penalties.
Of course I wanted more information… they mentioned RITA will catch you.. so I discovered Regional income Tax Agency (RITA) and it processes income tax and collects for cities. There are similar agencies around the state!
Basically you fill out a one page tax form declaring income or not and sign off – very basic form – if you do not submit it, you can face penalties.
No matter where you live you need to investigate the requirements – in Ohio, if you have college age students or a working (over 18) year old or you are reading this.. do check to make sure you fill out all tax forms where you live! More information here
As a central Ohioan, I looked up two municipalities outside Columbus with this information. Examples from Hilliard and Dublin below with an example of penalty statement from Dayton..
I share this with you — 8 days before taxes are due to double check that your taxes are finished, you have checked on city tax forms and submitted federal and state forms!
Effective January 1, 2022 the income tax rate increased to 2.5%.
Hilliard has a mandatory tax filing. All Hilliard residents age 18 and older must file an income tax return every year by April 15 (or by the following Monday if April 15 is a weekend day), regardless of whether they work within this city. Hilliard residents must pay the City a 2% municipal income tax unless they are taxed at least 2 percent by the taxing district in which they work.
The income tax division of Hilliard’s Finance Department oversees the City’s income tax collection and provides information to residents to ensure they can file income taxes correctly. Residents file income taxes through the Regional Income Tax Agency (RITA), which processes City income tax returns and collects the taxes that are due. Residents can file annual income tax forms electronically, or the income tax return forms can be found under “Additional Links” below.
All residents of Dublin (that are 18 and older) are required to file an income tax return with the City, regardless of where, or if, they work. The local income tax rate is 2.0% and applies to gross wages, salaries, compensation, and net profits of businesses and rentals. The City of Dublin provides 100% credit up to 2.0% for taxes withheld or paid to the workplace municipality for individuals.
All businesses located in Dublin or those conducting business within the City are required to file an annual net profit return. All employers with employees working within the City of Dublin (including from their home) are required to withhold the tax of 2.0% and remit to the C
The revenue generated from income tax funds the majority of City-provided services and capital improvement projects. Income tax revenue is allocated 75 percent to the General Fund and 25 percent to the Capital Improvements Tax Fund. The income tax revenue allocated to the Capital Improvements Fund may only be used for capital improvements.
Then I wanted to learn more about penalties and what fines cost.
APPLICABLE TO TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2016
A penalty may be imposed for failure of a taxpayer to pay City income tax when due and for failure to make estimated payments of City income tax when due, equal to fifteen percent (15%) of the amount not timely paid.
LATE FILING PENALTY
A late filing penalty may be imposed for failure of a taxpayer to file a return required, other than a return for estimated City income tax, by the due date or by the date resulting from extension of the original due date, twenty-five dollars ($25) for each failure to timely file each such return for each month, or any fraction of a month, during which the return remains unfiled, regardless of the liability shown on each such return. The late filing penalty shall not exceed one hundred fifty dollars ($150) for each failure to file a timely return required regardless of cause.
APPLICABLE TO TAXABLE YEARS BEFORE JANUARY 1, 2016
A penalty may be imposed for failure of a taxpayer to pay city income tax due, other than taxes withheld, two and one-half percent (2.5%) of such outstanding tax per month or fraction thereof that the tax remains outstanding, or ten percent (10%) of the outstanding liability, whichever is greater, with the penalty on to exceed fifty percent (50%) of such outstanding city income tax liability.
LATE FILING PENALTY
A late filing penalty may be imposed for failure of a taxpayer to file a city income tax return by the due date or by the date resulting from extension, fifty dollars ($50) per month or fraction thereof that the city income tax return is not filed, with the penalty not to exceed five hundred dollars ($500). The penalty provided in Section 36.109(B) shall be imposed regardless of cause.
Hopefully this helps you or reminds you of tax day coming up! April 15!