PDF document

- 1 -

Enlarge image

City of Englewood
Income Tax Department

Instructions for Form IR-1

Individual Return

For use in preparing

2023 Returns

These instructions are applicable to the City of Englewood. If you have any questions What is taxable income?
about completing any of our forms and/or need tax forms, please call (937)836-5106.
All forms and instructions are also available on-line at www.englewood.oh.us. For RESIDENTS, taxable income includes all salaries, wages, commissions, and other
compensation regardless of where it was earned. The income is taxable whether paid
Do I need to file? in cash, property, or other consideration. This includes the reasonable value of meals,
You need to file if any of the following apply: lodging, and the like.
▪ You are a resident of the City of Englewood during any part of the tax year and
are 18 years of age or older. Taxable income also includes the net profits of all unincorporated businesses, such as:
▪ You earned income in the City of Englewood which Englewood income tax was real estate and equipment rentals, sole proprietorships, trusts and a resident’s share
not fully and/or correctly withheld. of partnership income (whether distributed or not). These unincorporated business
▪ You were not a resident of the City of Englewood, but you engaged in a profits are taxable regardless of where business was conducted. You may be
business or profession within the city limits; whether the business showed a profit entitled to a credit for taxes paid to the city where your income was earned.
or loss. Beginning in tax year 2018, up to 50% of the previously unused 2017 or after net loss
▪ You were not a resident of the City of Englewood, but you own/owned property can be used to offset the current year taxable income. This offset is limited to the lesser
in the city and collect rent from a resident; whether the business showed a profit or of 50% the total available net loss or 50% of the current year profits before net operating
loss. loss carry forward is applied. Starting in tax year 2022 100% Net operating loss carry
forward may be used to offset the net profit.
Can we file a joint return?
A married couple may file a joint return regardless of the filing method used on their For NON-RESIDENTS, taxable income includes all salaries, wages, commissions, and
federal return. Joint returns must be signed by both spouses and include both social other compensation earned in the City of Englewood. Taxable income also includes
security numbers. net profits of all unincorporated businesses such as real estate and equipment rentals,
sole proprietorships, trusts, and your share of partnership income (whether distributed
Can I use Form IR-1? or not) if the business was conducted in the City of Englewood.
You can use Form IR-1 if you had income (loss) taxable to the city. Corporations
(including S-corporations), partnerships, joint ventures, and fiduciaries (estates and The City of Englewood taxable wages are calculated before any deduction for things
trusts) must file using Form BR-1. such as 401(k) deferrals.

Determine net profits from unincorporated business in accordance with the accounting
When and where do I file? method used for Federal income tax purposes. Any expenses claimed must be
• This return must be filed on or before the fifteenth day of the fourth month ordinary and necessary. Passive activity losses are deducted the year incurred: PAL
following the close of the tax year. For calendar year taxpayers, this means the carry forwards are not allowed for city tax purposes. In addition, net operating loss
return is due April 15 th unless the IRS or the State of Ohio extends the filing date. carry forwards and carry backs are not permitted for tax years 2017 and prior.
• Any taxpayer that has requested an extension for filing their Federal income tax Beginning in tax year 2018, up to 50% of the previously unused 2017 or after net loss
return shall automatically receive the same extension for filing of the City tax return. can be used to offset the current year taxable income before apportionment. This offset
Taxpayers who have not received or requested a Federal extension may request an is limited to the lesser of 50% the total available net loss or 50% of the current year
extension from the City provided the request is received before the original due date taxable income before net operating loss carry forward is applied. Starting in tax year
of the return. An extension of time to file is NOT an extension of time to pay any tax 2022 100% Net operating loss carry forward may be used to offset the net profit.
due.
• Mail to: Englewood Income Tax Department If you are engaged in two or more unincorporated businesses in the same city, the net
333 W National Rd loss of one unincorporated business may be used to offset the profits of another for
Englewood, Ohio 45322 purposes of arriving at overall net profits from unincorporated businesses for that city.

What if I file or pay late? City taxable income does not include proceeds of insurance policies if the employee
The City of Englewood imposes penalties and interest on taxes remaining unpaid after paid all the premiums. City taxable income also does not include compensation for
April 15 thand on estimated taxes that were underpaid. Thus, if you are unable to pay the
personal injury and property damages. Expenses, costs, and losses incurred in
full amount of tax owed, you should still file your return along with payment of as connection with income not subject to city income tax may not be used to reduce
much as possible. city taxable income.

The late filing charge of $25.00 per month with a maximum charge of $150 per return for See Appendix A – Taxable and Non-Taxable Income – for a list of examples of different
all returns filed after the due date for tax years 2016 -2022, as of the 2023 tax return all types of income and whether they are taxable. This list is intended for reference
late filing fees are $25.00 per return. purposes only. It may not be all inclusive and is subject to revision without notice.

Are there any special rules for refunds? What are unincorporated businesses?
• Refunds resulting from an overpayment of estimated tax or the deduction of ▪ Sole proprietorships – Schedule C, Federal Form 1040
employee business expenses may be requested using this form. You must ▪ Rental properties - Schedule E, Federal Form 1040
attach a copy of your Federal Form 2106 and Federal Schedule A to claim ▪ Partnerships, Joint Ventures, and other type associations (These businesses file
employee business expenses on Form IR-1. Federal Form 2106 which has their own returns using Form BR- 1; however, you must report your share of
expenses reported on Line 4 only are not required to be filed with IRS and will not their city taxable income on your individual return if you are a partner).
be allowed on the city return. The 2% AGI floor on the Federal return will apply to
any 2106 expense.
• A refund must be greater than $10 to be issued.
• There is a three (3) year statute of limitations for claiming a refund or credit of
any overpayment of city tax.

- 2 -

Enlarge image

PART B: OTHER INCOME
Column H – Enter net profit (or loss) from PART F, Line 23, or from Schedule Y if you
COMPLETING FORM IR-1 are allocating your income. Schedule Y is used only if you engaged in business in
more than one taxing district. If you attached a copy of your Federal Schedule C in
▪ Please enter the information in the spaces provided for name, current address, lieu of completing PART F on Page 3, enter your net profit (Line 31) from Schedule C.
Englewood account number, and SSN. If you are filing a joint return, provide your
spouse’s name and SSN. Column I - Enter net income (or loss) from PART G , Line 27, or from your Federal
▪ If you are amending a tax year, place an “X” in the box marked AMENDED and be Schedule E if attached in lieu of completing PART G or Schedule Y. Individual
sure to indicate the tax year that you are amending in the space provided. If you taxpayers who report more than one rental property on Federal Schedule E are
are amending the city return based upon an amended return that you filed considered by the Department to be in the business of renting property. Per §718.02 of
with the IRS, you must include a copy of the amended Federal return, including the Ohio Revised Code a business or profession conducted within and without the
any applicable schedules pertaining to the amendment. If you are filing an boundaries of a municipal corporation is required to use the three part allocation
amended city return based upon an audit that the IRS conducted, you must formula when calculating net profits for municipal taxation (Schedule Y).
include documentation pertaining to the audit and note any changes that were
made by the IRS to reduce or increase your taxable income. Column J – Enter any other income.
▪ Indicate your filing status.
▪ If you moved, enter the date of your move. If you are allocating income as a Column K – Enter gambling winnings.
result of your move, you will need to complete PART E: Section 3. Attach a
copy of a paystub dated closest to your move date or an explanation of the
method used to determine the allocation. Column L – Total of Columns H through K.

Line 9 – Total of Column L.
PART A: TAX CALCULATION Line 10 – Column L times 1.75% (tax rate).
Column A - Indicate your employer(s). Attach an additional page if more space is Line 11 – Credits for taxes paid to other cities – the credit is limited to 1.75% of income
needed. taxes paid per activity and per city. Attach a copy of the other cities tax return that will
provide the necessary proof of the credit taken.
Column B - Indicate city W2 wages from each employer.
Line 12 – Line 10 less Line 11 (This amount gets carried up to Line 2 in PART A). If line
Column C - Complete PART E for adjustments to W2 wages otherwise Column C will 11 is greater than Line 10, enter $0.
equal Column B.
Wages for city tax purposes may differ from the Federal Medicare wages reported on Box 5 of the W2
as adjusted under §718.03 of the Ohio Revised Code. City taxable wages include all wages that PART C: DECLARATION OF ESTIMATED CITY INCOME TAX
may be deferred or excluded from Federal and State taxable wages under §401 of the Internal
Revenue Code. These deferrals appear in Box 12 of your W-2 with codes D, E, F, G, and S. • Taxpayers (resident or nonresident) who anticipate owing city tax more than $200
You may be subject to additional tax due to residency if your employer does not collect and remit must complete PART C of this form.
courtesy withholding or your employer has incorrectly reported taxable income.
• The declaration should be filed with the tax return by April 15th.
Column D – Column C times 1.75%. • Your first quarter payment should be submitted with the declaration.
• No extensions of time to file or pay will be granted.
Column E – Englewood local taxes withheld in Box 19 of the W-2 only. (Must say • Each subsequent quarterly payment should be paid using one of the
Englewood in box 20 of the W-2.) estimated tax payment coupons. Your second, third and fourth payments are
due on June 15, September 15 and January 15, respectively.
Column F – Credit for taxes paid to other cities is limited to 1.75% of wages taxed for • We will also consider your estimated taxes as filed in good faith if t h e t i m el y
each city on the W2. q u ar t e rl y payments equal or exceed 100% of the tax shown on your prior year
return.
Column G – Column D less Column E less Column F. (Column G can only show an • Failure to make timely quarterly declaration tax payments may result in penalty
overpayment/negative amount if Column E exceeds Column D. Column F cannot exceed and interest assessments.
Column D.
Line 13 – Total estimated wages or other income for the upcoming year.
Line 1 – Total of Column G.
Line 14 – Line 13 times 1.75%.
Line 2 – Total of PART B Line 12.
Line 15 – Credits that will be allowed for taxes paid to other cities limited to 1.75%.
Line 3 – Total of above Line 1 and Line 2.
Line 16 – Line 14 less Line 15.
Line 4 – Enter all declaration payments made during the current tax year and any
overpayment carried forward from the prior year. Do not enter tax withheld or paid by a Line 17 – Line 16 divided by 4 quarters.
partnership on your behalf.

Line 5 – Line 3 less Line 4 (If Line 4 is greater than Line 3, enter amount here and carry to PART D: SIGNATURES
Line 8).
Sign and Date Your Return
Line 6 – Enter penalty, interest, and late filing fees here. Form IR-1 is not considered a complete return unless you sign it and attach all W-2
statements and applicable federal tax documents. If you are filing a joint return,
Line 7 – Add Line 5 and Line 6 (No payment is due if balance is $10 or less). your spouse must also sign.
If you wish the City of Englewood to communicate with you about questions or
Line 8 – If Line 4 exceeds Line 3 enter the excess here. adjustments to your return using a secured email system, check the box in this section.
If you are filing a joint return, your spouse must also check a box. You do not have to
Line 8A – Enter the amount of Line 8 you want credited to your next year tax estimate. provide two separate email accounts.
Line 8B – Enter the amount of Line 8 you want refunded (no refund for amounts $10 or Paid Preparers Must Sign Your Return. Anyone you pay to prepare your return
less). must sign and date it in the space provided, and provide their Paid Preparer Tax
Identification Number (PTIN).

- 3 -

Enlarge image

Third Party Designee PART G: SCHEDULE E –RENTAL INCOME (LOSS)
• Enter income (loss) produced from rental property by providing the detailed
If you want to allow a friend, family member, or any other person you choose to discuss information in the appropriate columns.
your tax return with the City of Englewood, check the “YES” box in the “Third Party • Federal Form 1040, Schedule E will be accepted in lieu of complete of PART G
Designee” area of your return. Enter the designee’s name and phone number. on Form IR-1.
• Individual taxpayers who report more than one rental property on Federal
If you want to allow the paid preparer who signed your return to discuss it with the Schedule E are considered by the tax department to be in the business of
City of Englewood, just enter “Preparer” in the space for the designee’s name. You do renting property and thus should use Schedule Y – Business Allocation Formula
not have to provide the other information requested. to calculate the portion of income or loss.
• Rental income is taxed first to the city where the income has been allocated,
If you check the “YES” box, you and your spouse, if filing a joint return, are authorizing and then paid to the city of residence (if the allowable credit for taxes paid to the
the City of Englewood to call the designee to answer any questions that may arise city where the income has been allocated is not equal to or greater than tax due
during the processing of your return. You are also authorizing the designee to: to your city of residence).
• Provide the City of Englewood any information that is missing from your return. • If the property is not located in any taxing district, income is taxed to the owner’s
• Communicate with the City of Englewood about the processing of your return or city of residence.
the status of your refund or payment(s).
• Receive copies of notices or transcripts related to your return.
• Respond to certain City of Englewood notices about math errors, offsets, and SCHEDULE Y – BUSINESS ALLOCATION FORMULA
return preparation.
STEP 1- List the average original cost of all real and tangible personal property
You are not authorizing the designee to receive a refund check, bind you to anything owned or used by the taxpayer. Also list the gross annual rental income multiplied
(including additional tax liability), or otherwise represent you before the City of by 8.
Englewood. The authorization will remain in effect for the specific return and tax year
on which it appears, unless rescinded on a subsequent return for the same tax STEP 2- List the gross receipts from sales made or services performed.
year, or in writing by the taxpayer.
STEP 3- List the wages, salaries, and other compensation paid to W-2 employees
for services performed.
PART E: ADJUSTMENTS TO WAGES
STEP 4- Total the percentages from each STEP.
Section 1 – Under the age of 16 Withholding
• You may reduce your taxable wages by the amount of wages you earned while STEP 5- Divide STEP 4, by the number of STEPS used in this Schedule.
under the age of 16.
• You must attach a copy of your driver’s license or birth certificate. Do not send STEP 6- Multiply STEP 5 by the total income produced for this business. Transfer this
originals — they will not be returned. total to PART B.

Section 2 – Partial Year Residents
• Enter the dates you were a resident on the first line.
• You may reduce your taxable wages by the amount of wages earned while you
were not a resident of Englewood.
• If you are using a paystub to calculate this allocation, please attach.
• If you are using any other method of allocation, please explain.

Section 3 – Tax Withholding Correction
▪ You MUST attach W-2(s) and supporting documentation.

Section 4 – Non Resident Over-the-Road, Air Carriers, Railroad Employees
▪ Use these lines only if you are a nonresident employee working in one of these
industries and are regularly assigned duties within Ohio only.
▪ Be sure to complete Certification by Employer regarding Adjustments to Wages

Section 5 – Non Resident working outside the city limits
▪ Lines 17-27 guide you through a formula based on a work year consisting of 260
days.
▪ The 260 days represent five days per week times 52 weeks.
▪ Sick, vacation, and holiday pay are days within Englewood.
▪ Be sure to attach a list of all the dates you worked outside of Englewood, along
with the locations (city and state) at which work was performed.
▪ Credit for taxes withheld for a workplace cannot exceed:
o The workplace city taxable income times Englewood’s tax rate.
▪ Be sure to complete Certification by Employer regarding Adjustments to Wages.

PART F: SCHEDULE C – INCOME (LOSS) FROM SELF-EMPLOYMENT
• The questions on Schedule C should be answered in full. List income and
subtract expenses to determine net profit or loss from business or profession.
• A copy of your Federal Form 1040, Schedule C will be accepted in lieu of
completion of PART F on Form IR-1.
• A separate PART F should be completed for each Schedule C reporting.
• All schedules and/or forms supporting the information listed should be attached
to your return.

- 4 -

Enlarge image

APPENDIX A 
                                                                  
WHAT IS TAXABLE INCOME?                                          WHAT INCOME IS NOT TAXABLE? 
• Bonuses                                                        • Alimony 
• Compensation paid in property or the use thereof at fair       • Annuities - at time of distribution 
  market value to the same extent as taxable for federal tax     • Capital gains 
  purposes and so indicated on the W-2 form                      • Dividends 
• Contributions made by or on behalf of employees to qualified   • Housing allowances for clergy to the extent that the 
  deferral plan (401K and the like) – taxed in  year earned,       allowance is used to provide a home 
  deferrals are not permitted. Exception: employer  matching     • Income earned while under 16 years of age 
  contributions  offered  under  a cafeteria plans are not       • Income from  serving as  a  precinct election official if less 
  taxable.                                                         than $1,000 
• Contributions made by, or on behalf of employees to a tax-     • Income from qualified pension plans 
  deferred annuity or stock purchase plan (includes any plan     • Interest income 
  where employee has the option to defer)                        • Long-term disability payments 
• Contributions made by, or on behalf of employees to a non-     • Meals and lodging required on premises 
  qualified deferred compensation plan.                          • Military pay including active and reserve pay. 
• Cost of  group term life insurance over $50,000 (unless part   • Nonresident subchapter S corporation income to a resident 
  of a cafeteria plan)                                             shareholder (effective 1/1/03) is no longer taxable 
• Director's fees                                                • Patent and copyright income 
• Excess employee discounts                                      • Pension income - includes lump sum distributions 
• Executor fees                                                  • Proceeds of life insurance 
• Farm Net Income - Schedule F, Federal Form 1040                • Royalties - if derived from intangible property 
• Gambling/Lottery winnings                                      • Section 125 Cafeteria Plans 
• Golden parachute payments                                      • Social Security benefits 
• Income from guaranteed annual wage contracts                   • State unemployment benefits 
• Income from jury duty                                          • Tax-exempt  tangible  or  intangible  property  or  tax- exempt 
• Income from wage continuation plans (includes retirement         activities 
  incentive plans and buy-outs)                                  • Third Party sick pay 
• Income received as a result of a covenant or agreement not     • Welfare payments 
  to compete, relating to employee wages                         • Worker’s Compensation 
• Interest on below market loans 
• Moving  expense  reimbursements  (follow  Federal rules but 
  non-reimbursed expenses are not deductible) 
• Pre-retirement distributions  from  retirement  plans (except 
  previously taxed income from deferred plans) 
• Prizes, awards, and gifts –  if connected with employment 
• Prizes  and  winnings  from  sweepstakes 
• Profit Sharing 
• Royalties (unless derived from registered copyrights, patents 
  or trademarks) 
• Severance pay 
• Sick and/or vacation pay (Third Party sick pay is not taxable) 
• Stipends  –  if  work  required  (vow  of  poverty  not 
  recognized) 
• Stock bonus incentive plans 
• Stock options 
• Strike benefits paid by employer 
• Supplemental unemployment pay paid by employer 
• Taxes paid by employer on employee's behalf 
• Tips 
• Uniforms, automobile, moving and travel allowances 
• Union steward fees and strike pay 
• Wages, salaries, other compensation, bonuses, stipends, tip 
  income, vacation pay, stock options, sick pay, strike pay, 
  commissions, fees, and other earned income.

PDF file checksum: 402888609

(Plugin #1/9.12/13.0)