Enlarge image | GENERAL INFORMATION INTEREST the final tax liability. The first payment is due April 1 , 202 . At least a similar 8 3 DO I HAVE TO FILE A CITY INCOME Interest will be imposed on any unpaid amount shall be paid on or before June TAX RETURN? taxes at the rate of 0.58% per month on 15, 202 , September 15, 202 , and 3 3 the outstanding balance due. January 1 , 202 . 5 4 Every Canton, Ohio resident Please note carefully: the Canton city between the ages of 18 and 65 must WHAT IF I NEED MORE TIME TO income tax department will not send a file a city income tax return; even if FILE? statement of estimated tax due every there is no tax due. (Any resident who quarter. Instead, the quarterly only has non-taxable income may Taxpayers who have requested an statements are sent with the annual simply fill out the Exemption Form to automatic six month extension for filing income tax return. Each remittance will fulfill the filing requirement). the federal income tax return will be due on the last day of the month automatically receive a six month following Quarter end. Please mark Taxpayers who were 65 years old or extension for filing the city income tax your calendar and be sure to file the return. Please attach a copy of your estimates timely. older on or before December 31, 202 , 2 and whose sole income was derived federal Form 4868 when you file the from non-taxable sources such as city return. A DECLARATION OF ESTIMATED TAX WHICH IS LESS THAN 90% OF social security, pension, etc., do not have to file a tax return. Please fill out Taxpayers who have not requested THE TAX DUE ON THE FINAL and return the Exemption Form, the automatic federal extension still RETURN WILL BE SUBJECT TO A informing us of your exempt status so may request a six month extension of PENALTY OF 15% OF THE UNPAID that you no longer receive a tax form. the date for filing the city income tax BALANCE AND INTEREST OF 0.58% FAILURE TO DO THIS WILL RESULT return; however, the request must be PER MONTH, MULTIPLIED BY THE IN OUR CONSIDERING YOUR made in writing and it must be NUMBER OF MONTHS UNPAID. ACCOUNT DELINQUENT. received on or before the original filing deadline. A Declaration can be amended at any Any non-resident who has Canton time during the year by written request business or rental activities must file a Please be aware that an extension of to the tax department. City return and estimate. Nonresidents time to file your return does not grant who are employed in Canton, but have you any extension of time to pay your not paid the correct amount of income taxes. April 18 is the deadline for most WHAT IS TAXABLE INCOME? tax by payroll deduction, also must file to pay taxes owed and avoid penalty a return and remit the tax due. and interest charges. In general, taxable income is earned income. It includes, but is not limited to: Any part-year resident who has Send extension requests to P.O. Box business profits, net profits from rental lived in the city 30 days or more 9940, Canton, OH 44711-9940. property, natural resource royalties, must file a city return. salaries, wages, qualified and NOTE: We will contact you only if nonqualified deferred compensation WHEN AND WHERE DO I FILE? the extension request is denied. plans, stock options, commissions, Even though an extension has been other compensation, bonuses, File as early as possible, but no later granted, interest will be charged on incentive payments, directors fees, any unpaid tax. The interest will be executor's fees, property in lieu of than April 1 , 202 , for the calendar 8 3 charged from the date the tax cash, tips, severance pay, SERPs, year 202 . 2 should have been paid. nonqualified deferred compensation plans, nonqualified pensions, tax You may have your city tax return shelter plans, vacation pay, sick pay, prepared free of charge by city Income DO I HAVE TO PAY ESTIMATED third party sick pay, supplemental Tax Department staff auditors. Mail TAX? unemployment benefits (SUB pay), and your W2’s, 1099’s and any applicable pre-tax programs that reflect a federal schedules to the city tax Any individual who will owe $200 or reduction from salaries, wages, department at 424 Market Avenue more of Canton income tax which is commissions, and other compensation North, 4 Floor, Canton, OH 44702, or th as reported on W-2 and/or similar wage not being withheld by an employer is email to required to file a Declaration of reporting forms under Federal and cantontax@cantonohio.gov, or Estimated Tax and make quarterly State tax regulations unless specifically fax to 330-430-7944. payments. PAYMENTS on estimated exempted In the Canton City ordinance taxes PLUS any other CREDITS must and/or under state statutes. EQUAL at least NINETY PERCENT FAILURE TO FILE PENALTY (90%) of the FINAL LIABILITY to All income derived from gambling, avoid interest penalty. Estimated wagering, lotteries, (including Ohio RETURNS POSTMARKED AFTER payments on a Declaration greater state lottery), and all games of chance APRIL 18th are subject to late filing than or equal to the prior year's final are taxable. penalties imposed at $25.00 per month liability are sufficient and will not be after the filing deadline, up to a subject to interest penalty. maximum penalty of $150. Each Declaration shall be accompanied by a payment of at least one twenty- two and five tenths percent (22.5%) of |
Enlarge image | WHAT IS NON- TAXABLE INCOME? property used in business, multiply compensation for the purposes of this the gross annual rental by 8. tax. In general, non-taxable income is unearned income and income (2) Gross receipts from sales made Net operating losses may not be specifically exempted by the Canton and services performed, regardless carried back to prior years. city ordinance. It includes: dividends, of where made or performed. interest, military pay and allowances, compensation paid to precinct election (3) Total Payroll DIRECT DEPOSIT officials (poll workers) up to one thousand dollars ($1,000.00), ministers Add the ratios obtained and divide the We can now deposit your refund housing allowances, lump-sum total by the number of ratios used to directly into your bank account. insurance proceeds, annuities, obtain the business allocation alimony, medicare, gifts, inheritances, percentage. A ratio shall not be (1) Check the “Direct Deposit” box scholarships, involuntary conversions, excluded from the computation next to line 12 on the front of the income from intangible property, because it is allocable entirely within or tax return. qualified relocation costs of any entirely outside the City of Canton. The employee that are reimbursed by the business allocation percentage is to be (2) Flip the return over and enter your employer; and, poor relief, qualified applied against the total net profits bank Routing Number and your pensions, unemployment adjusted in accordance with the Account Number on the back of compensation, social security benefits, provisions of the Ordinance, to the tax return. disability payments, and/or similar determine the taxable portion. payments. SCHEDULE Y MUST BE ATTACHED. (3) Specify account type, Checking or Savings. Pre-tax contributions to a qualified Individuals who are residents of “cafeteria plan,” pursuant to Section Canton are subject to the tax, 125 of the Internal Revenue Code are regardless of where their income is (4) Enter the name of your bank. not taxable by Canton. earned. Credit will be given for tax imposed by another municipality on (5) Double check your work! Any income earned within its city limits, direct deposit returned to us HOW ARE BUSINESS NET PROFITS up to the 2 % which is also .5 because of an incorrect account DETERMINED? (SCHEDULE X) assessed by Canton. number or routing number will be reissued in the form of a check. Net profits shall be determined on the This will cause an unnecessary basis of the information used for HOW ARE NET OPERATING delay. Federal Income Tax purposes, LOSSES TREATED? adjusted to the requirements of WHAT ATTACHMENTS ARE Canton's Ordinance. Losses from either business or rental REQUIRED TO THE CITY RETURN? property must be noted on the back Schedule X is used to reconcile the of the return. Losses incurred in tax All W-2's, (no exceptions) 1099's and Federal return with the city return by years beginning on and after copies of all Federal Schedules. The making adjustments for items not January 1, 2017 may be carried return is not complete unless this taxable and/or items not deductible forward for five (5) years (subject to source data is provided. For for city tax purposes. Enter the statutory limitations of the Ohio taxpayers under 18 or over 65, proof of amounts of any such items on the Revised Code and the Codified age required. appropriate lines of Schedule X, and Ordinances of Canton). calculate the net adjustment amount SCHEDULE X MUST BE ATTACHED Business or rental income may be Should you require filing assistance, TO CITY RETURN. reduced by business or rental losses or if you have any questions about incurred in the prior three (3) tax years the Canton city income tax, please ending on or before December 31, contact our office. The Canton City HOW ARE NET PROFITS 2016. Income Tax Department is located at 424 Market Ave., N, on the fourth ALLOCATED? (SCHEDULE Y) floor of the old “Sears” Building, Business and rental losses may not be downtown. You may call The business allocation percentage deducted directly from wages. If an 430-7900, Fax 330-430 7944, or- 330- formula is to be used by all business eligible loss is realized, the loss is visit us on the web: enterprises doing business within and carried forward to reduce any possible www.cantonincometax.com, or write outside of the City of Canton. The future gains. Canton residents with net to PO Box 9940, Canton OH business allocation percentage shall profit and/or distributive share income 44711-9940. be determined by the ratio of the sourced in multiple municipalities with Canton portion of: current and/or prior year losses must file the Resident Business/Rental (1) Average original cost of real and Income Worksheet. tangible property owned, rented or leased by the taxpayer for use in Net operating losses may not be the trade or business. To determine utilized to offset income from salaries, the value of rented or leased wages, commissions and/or other |