Frequently Asked Questions (FAQ's)
I
am a Whitehouse resident and work in an area with no municipal tax or a rate
less than Whitehouse’s rate of 1.5%. How often must I file with Whitehouse?
Ask
your employer to withhold the additional local tax to Whitehouse. The additional
tax is considered an alternate tax due as a result of working in a city that has
a tax rate less than your city of residence. Your employer is not required to
withhold the alternate tax; however, many employers will upon request. The forms
are available on this website, or your employer may contact us at 419-877-5383
if they have any questions.
I
am retired. My only income is from
Social Security, company pension, interest and dividends. Am
I required to file a Village of Whitehouse income tax return?
No.
You are not required to file an income tax return with Whitehouse, nor do we tax
you on these types of income. However, you must file a final return stating
this, so we will not send you an income tax return in the future. If you do
return to work, any earnings (other than retirement income) would be subject to
the local income tax and you would be required to file an annual Whitehouse
income tax return.
My
spouse and I file separately at the federal/state level. Do I have to file the
same for Whitehouse?
No, a
husband and wife may elect to file separately or jointly regardless of their
federal or state filing status. At the municipal tax level, there is no
advantage to filing separately and we suggest filing jointly.
I
live in an apartment and do not own any real estate in Whitehouse. Do
I still have to file a Whitehouse income tax return?
Yes,
all Whitehouse residents are required to file a local income tax return, whether
or not they have been fully withheld and/or have paid a municipal tax to another
community. Apartment dwellers within the Village are residents and are required
to file an annual Whitehouse income tax return.
Is
city withholding tax based on employee work location or residence?
It is
based upon, and employers are required to withhold to, the employee's work
location (municipality).
I
am a college student, living and working outside Whitehouse, do I need to file a
return and pay tax on that income?
Yes,
Whitehouse is considered your domicile (i.e., you are eligible to vote in
Whitehouse, you file a State of Ohio tax return with a Whitehouse address,
etc.).
How
do I know what city I live and/or work in?
First,
don't always rely on the mailing address to determine the municipality in which
you live or work. The U.S. Postal Service establishes mailing addresses based
upon the Post Office that serves your area, not the city in which you may
actually live or work. Similarly, you cannot rely on your school district, since
they don't always follow municipal boundaries. If you have questions,
please call the Tax Division at 419-877-5383
Can
someone help me prepare my city tax return?
Yes,
we have auditors available from 9:00 a.m. to noon and 2:00 p.m. to 5:00 p.m.
Monday through Friday. We can only prepare your Whitehouse return (not federal
or state) and cannot help you with returns for other municipalities.
Bring your federal return and all related schedules including your
W-2’s and/or 1099 forms to our office.
I'm
starting a business. What do I need to do about Village taxes?
You
will normally have to remit two types of Village taxes: the net profits tax and
the employee withholding tax (if you have employees).
The
first is the tax due on profits from your business, whether it is a sole
proprietorship, corporation or partnership. Partnerships can file and pay
the tax at the entity level or file an informational return and each individual
partner then files and pays his/her share of the tax.
To
remit the second type of tax (tax withheld from your employees' wages) you will
need to establish a withholding account with the Village. You can do this by
completing a Business Questionnaire Form which is available on this website.
Employers are liable for all Whitehouse withholding taxes that should
have been withheld from their employees’ wages EVEN if those taxes were not,
in fact, withheld. Because of this obligation, you'll want to make sure you set
up your employer withholding account as soon as you hire employees.
How
can I make sure my employer is withholding the correct local tax from my wages?
Look
at the gross wage figure on your paycheck stub. If you are an hourly employee,
your gross wage is generally computed by multiplying your hourly rate (or
overtime rate applicable) by the number of hours you worked during the period.
Gross wages for a salaried employee are generally determined by dividing gross
annual salary by the number of pay periods in the salary year. Whether hourly or
salaried, gross wages are determined by including any deductions or deferments
(i.e. 401K deferrals). Multiply your gross wages by the Whitehouse tax rate
(1.5%) The result of this computation should equal local tax that was withheld
from your wages. If you find that the correct local tax is not being withheld,
you need to contact your employer to have it corrected. Although your employer
is legally responsible for withholding the correct tax and paying that tax to
Whitehouse, the tax is imposed upon your wages and you have the responsibility
to ensure that your full tax obligation is being met.
I'm
self-employed but my business has not shown a profit. Am
I required to file a return?
Yes,
all residents or non-residents conducting a business within Whitehouse must file
an annual return and report the net profits or losses. The leasing of real or
tangible property (i.e. income from a rental property) that you own is
considered a taxable business activity that must be reported.
Losses can be used or carried forward for a period of five years.
I
owe Whitehouse Village
taxes but I am unable to pay my full liability at the time my return is due. Should
I still file my return?
Yes,
you should file your return by the due date whether or not you are able to pay
the entire amount that you owe. You will receive a bill for the unpaid taxes
along with late payment penalty and interest charges. You may then contact us to
arrange for payment for the charges shown on the bill.
There will be a penalty charged for each month the return is not filed.
I'm
a partner in a partnership and a Whitehouse resident. Do I owe Whitehouse tax on
my income from the partnership?
Yes, a
Whitehouse resident is taxed upon his/her share of all income earned by
partnerships (wherever located) in which he/she is a partner. However, half
credit (up to .75%) is given for all city income tax that was paid to the city
or cities in which the income was earned, whether the partnership as an entity
or you as an individual partner paid that tax.
I'm
serving in a fiduciary capacity. What
is my responsibility for filing?
Trusts
and estates conducting business within the Village are required to file a
Whitehouse Business Return and report, at the entity level, all net profits or
losses earned or incurred as a result of activity conducted within the Village.
Tax is due on the net profits reported as having been earned in the Village.
Since the tax is paid at the entity level of the trust or estate, beneficiaries
are not required to pay Village tax on income derived from trusts or estates.
What
are the top 10 mistakes people make in filing a tax return?
- Failure
to sign return/attach check/include name on return
- Failure
to file Declaration of Estimate
- Failure
to advise of address changes
- Failure
to file return for the year taxpayer moves in or out
- Failure
to allocate taxes paid when allocating income for move-in/move out year
- Failure
to pay 2nd, 3rd and 4th quarter estimated tax payments
- Failure
to mail return
- Failure
to attach schedules/forms and statements
- Failure
to attach W-2
- Failure
to use gross compensation (normally Box 5)
If you have additional questions, please call and we will be happy to
assist you - 419-877-5383.