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MARION INCOME TAX DEPARTMENT
233 WEST CENTER STREET
MARION,OHIO 43302
(740) 387-6926

2023 BUSINESS INCOME TAX RETURN INSTRUCTIONS

LINE 1. Enter your adjuste d federal taxable in omc e(loss) 2nd quarter 15th day of the 6th month of the tax year
excluding income from pass-throughenti esti . Please read the 3rd quarter 15th day of the 9th month of the tax year
sec it on titled "ADJUST DE FEDERAL TA ABLEX INCOME ".C 4th quarter 15th day of the 12th month of the tax year
corporations enter the amou t nrf m o inl14 e f cho s edul 1e . The amountdue with the return is het su m of line10 and neli
Other non-individual entitiesenter t he amount from line 22 of 15. Please make c ehksc payable to:Mari on City Incom e
schedule3 I . f you are a sole proprieto r,please contact our Tax.
department so that we can send you a n individualincome ta x
return. SCHEDULE 1. C CORPORATIONS,REAL ESTATE
LINE 2. Ent rein come earne d withi n Marion from pass t-rhugho INVESTMENT TRUSTS, AND REGULATED INVESTMENT
entities (exclu ding S corporat ns)io wh ciyoh u own . The pass- COMPANIES
through entity should cludein info rmation on your shar e o f
incom e earne d within Marion on yo ur scheduleK-1 . NOTE: Ifthe amountson your fed rae lreturn include amoun st
LINE 3. Add lines 1 and 2. from pa s-ts rouh h gnte ities y u oon adjustw , the mou tsayoun
LINE 4. Multi lpi y l ne3 by 2.00 % (.02). If line 3 i asl oss,enter - report on Schedule 1 to eliminatethe pass-through amounts .
0-. Yourshar ofe t axable income from a pass-through entity
If you are a p ssa -thruo gh en ityt (o therhan t naS corporat oi n) attributa lbt e o Marion should be reported to you by the p ass-
and are filing an information return,write"INFO ONLY " on line through entity and eportedr o ln ni2eof your return .
4.Pl asee read thesection titled " PASS-THROUGH LINE 1. Enter yo ruf de eral t axable in come before netope ar ting
ENTITIES". loss and special deduct onsi .
LINE 5. Enter Mari on incom te xa paid o n your behalf by pass- LINES 2A - 2D. Enter you dr denivi incod e on mne 2Ali n rest,i te
through en tities (excluding cS orporati ons)wh hic you wno . income on line 2B,and royalty income on line 2C. E er nt het
LINE 6. Enter any es it mated taxpaym n e ts and credit sum of 2A,2B and2C on neli2D .
carryovers ofr m prior tax y ears. If you are unsure o tf eh LINE 3. Ente r capit al gains.
amo unt o pf ayment asd credn tsi , please contact our off ice. LINE 4. Enter gain reported o ln nei 12 of federal form 4797 .
LINE 7. dA d lines 5 6& . LINE 5. Add lines 2D, 3 & 4.
LINE 8. Subtrac t line7 rfmo lin e 4. If the result is anegative LINE 6. Subtract line 5from inel 1 .
number en, r tee rth esult i n( ). LINE 7. Enter5 %(.05) of line 2D .
LINE 9. If line 8shows an overpayment, ind cai te whether you LINE 8. Enter loss reported on line 11of edef alrfo m r7974 .
want th e overpayment c direedtto exn t yearor refun ded . LINE 9. Enter all taxes based on income deducted on the
LINE 10. hT e tax r teruand n het payment ofaxt is du byethe federal income tax ret urn.
15th day of the4th omthnf lowol ing the end ofyour at x year . LINE 10. If you are a r aleest eati nvestment trustor a regu al ted
You may request a 6month extension to f lei yourretu nr . investme nt compan y,ent eramount of divi dends or
Federal xeent sion requests will be hono red by the Cityof distributions to ownersallow ed as a deduction on the federa l
Marion; however , extensions of time to f lei donot extend the return.
time to pay th e tax. Extension request must be in our office by LINE 11. Add lines 7 ,8, 9 & 10.
April 15th. If you estimat e that you will have t axd ue,you LINE 12. Add lines 6 & 11 .
should submita written request for an extension with payment LINE 13. Complete the allocation formula (Schedule 2) and
of the estimated taxd e.u Taxes not paid by theoriginal du e enter the result. If all of the business was conducted withi n the
datemay ebs ubject to a late paymentpenalty – 15% of the city,enter 100 %.
amount not timely paid for all income tax, and estimated tax LINE 14. uM ltip yl line 12 by line 1 3. Enter the result on line 1 of
payments. Past due ta esx will acc uer intere ts– federal short your return.
term rate + 5%. For current year rate, you may contact our
office. Returns f li ed after the duedate (inc udl gina yn SCHEDULE 2. BUSINESS ALLOCATION FORMULA
extensions) may be subjec ot ta late filing penalty of $25.00.
Anyu paid n xeta s,inte sre t and penalties may be referred to the Non-ind vidui laent i it es whosebusiness is c onductedbo th
City Law Director for collect oni . inside and outside th e city are to use an allocati on formula
DECLARATION OF ESTIMATED TAX based nop perro y t , sal seand aw ges to deerminet th poe iort n
You are requir det o pay your tax in quarterly estimate s if your of their net business in ome c loss( ) subject to Marion income
taxl ess credit foraxt p aidon your beh fal by pass- through tax.
entities (exc luding S corporat ons)i is$1,000 00. o more r . If thebu inssse i locateds entirely within th cityeor if the
LINE 11. Enteryo ru total estima te d taxable income and business is owned by a resident h, talle ocation percentage is
multip ly by 20. % ( .02). 100%.
LINE 12. Enter y ourestimated M arion tax paid on your behalf
by pass-throu gh ent tiei s (excluding S corpor ations)wh hicy uo SCHEDULE 3. PARTNERSHIPS,S CORPORATIONS AND
own. OTHER ENTITIES
LINE 13. Su rabt ct line 12 from ilne 11.
LINE 14. Multipl y line13 b y25 % (. 25). NOTE: tIf he amo unts on your federa rl uet rn include amo unt s
LINE 15. uS btrac t anyoverpay ment credit on line 9 A from line from other pass th- rough entities you o wn, adjus t the amounts
14 to determin e the ba al n ceof yo ur1st quarterly estimated you report onS hcdel u e 3 to eliminate the ass-tp rough h
payme nt. Thef rsti qu raerlyt p ayment is du the e sa me day as amounts. Your s areh of tax ble a ncomei fr m onother a ass-p
the tax r eturn.Ther maine ngi estimat es are due: throughenti ty attribut blea to Mari nosh ulobedreported to you

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(4) (a)Except as provided ni division (B)(4)(b) of th si
by the other pass-through entity and reported on line 2 of your section, deduct income and gain included i n federal taxable
return. income to the extent the income and gain directly relate to the
LINE 1. Enter your ordinary income(loss) from your federal sale, exchange,or other disposition of an asset described in §
return. 1221 or § 1231 of the Internal Revenue Code.
NOTE: If you are using the allocation formula (Schedule 2) for (b) Division (B)(4)(a) of this section does not apply to
your business activities but using an actual accounting for your the extent the income or gain is income or gain described in §
rental activities, skip lines 2 & 3 and go to line 4. 1245 or § 1250 of the Internal Revenue Code.
LINE 2. Enter the net profit (loss) from rental real estate. (5) Add taxes on or measured by net income allowed as a
LINE 3. Enter the net profit (loss) from other rentals. deduction in the computation of federal taxable income.
LINE 4. Enter guaranteed payments to owners. (6) In the case of a real estate investment trust and regulated
LINE 5. Enter other income from your federal schedule K. investment company,add all amounts w thi respect to
LINE 6. Add lines 1, 2,3, 4 & 5. dividends to,distributions to, or amounts set aside for or
LINE 7. Enter your charitable contributions. credited to the benefit of investors and allowed as a deduction
LINE 8. Enter your Section 179 deduction. in the computation of federal taxable income.
LINE 9. Enter your deductions related to portfolio income. (7) If the taxpayer is not a C corporation and is not an
LINE 10. Enter your other deductions if they would be individual,the taxpayer shall compute adjusted federal taxable
deductible by a C corporation. income as if the taxpayer were a C corporation,except:
LINE 11. Add lines 7,8,9 & 10 . (a) Guaranteed payments and other similar amounts
LINE 12. Subtract line 11 from line 6. paid or accrued to a partner,former partner, member, or
LINES 13 A-F. Enter interest income on line 13A, dividends former member shall not be allowed as a deductible expense.
on line 13B, royalties on line 13C, and other portfolio income (b) Amounts paid or accrued to a qual ified self-
on line 13D.Enter the sum of 13A, 13B, 13C and 13D on line employed retirement plan with respect to an owner or owner-
13E.Enter 5%(.05) of line 13E on line 13F . employee of the taxpayer,amounts paid or accrued to or for
LINE 14. Enter all taxes based on income deducted on the health insurance for an owner or owner employee, and
federal income tax return. amounts paid or accrued to or for life insurance for an owner or
LINE 15. Enter amounts deducted on the federal return for owner-employee shall not be allowed as a deduction.
retirement plans,health insurance and/or, life insurance for an Nothing in this definition shall be construed as allowing the
owner-employee. taxpayer to add or deduct any amount more than once or shall
LINE 16. Add lines 13F, 14 & 15. be construed as allowing any taxpayer to deduct any amount
LINE 17. Add lines 12 & 16. paid to or accrued for purposes of federal self-employment tax.
LINE 18. Complete the allocation formula (Schedule 2) and
enter the result. If all of the business was conducted within the PASS-THROUGH ENTITIES:
city, enter 100%.
LINE 19. Multiply line 17 by line 18. S-CORPORATIONS:S-corporations are taxed at the
NOTE: If you used the allocation formula (Schedule 2) for your corporation level. S-corporation income does not pass through
rental activities, ski p lines 20 & 21 and enter the amount on to the shareholders.
line 19 on line 22. OTHER PASS-THROUGH ENTITIES:For tax years ending on
LINE 20. Enter your net profit or loss from rental real estate or after January 1, 2003,all other pass-through entities
activities located within the city. (partnerships,limited partnerships limited, liability companies,
LINE 21. Enter your net profit or loss from other rental activities etc.) will be taxed at the owner level. The owner will be liable
located within the city. for tax on his/her distributive share of the pass-through entity's
LINE 22. Add lines 19,20 & 21. Enter the result on line 1 of income. If the pass-through entity does business within the
your return. city, the entity needs to file an informational return reporting its
profits subject to tax and each owner's distributive share of
ADJUSTED FEDERAL TAXABLE INCOME those profits. The entity may elect to pay the tax due on behalf
of the owners.The entity needs to notify each owner of the
Ohio Revised Code section 718.01 (A)(1) and Marion Codified owner's distributive share of income earned within Marion and
Code section 193.02(B) define "adjusted federal taxable any tax paid to Marion on the owner's behalf.
income" as follows:
A C corporation's federal taxable income before net operating QUESTIONS AND ASSISTANCE
losses and special deductions as determined under the Marion City Income Tax Department
Internal Revenue Code,adjusted as follows : 233 W. Center Street
(1) Deduct intangible income to the extent included in federal Marion,Ohio 43302
taxable income.The deduction shall be allowed regardless of (740) 387-6926
whether the intangible income relates to assets used in a trade
or business or assets held for the production of income. Monday through Thursday 8 a.m. to 5 p.m.
(2) Add an amount equal to five percent of intangible income Friday 8 a.m.ot2 p m..
deducted under division (B)(1) of this section, but excluding
that portion of intangible income directly related to the sale, Information about City of Marion, Ohio income tax can be
exchange, or other disposition of property described in § 1221 found on the internet at www.marionohio.us/income-tax.
of the Internal Revenue Code.
(3) Add any losses allowed as a deduction in the computation Information about income taxes for other cities in Ohio can be
of federal taxable income if the losses directly relate to the found on the internet at:
sale, exchange,or other disposition of an asset described in § https://thefinder.tax.ohio.gov/StreamlineSalesTaxWeb/default_
1221 or § 1231 of the Internal Revenue Code. municipal.aspx

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