What's New for 2016?
We have changed our tax return forms. Toledo resident individuals will have a choice of forms. The new Toledo Resident EZ form is specifically for the Toledo resident that only has income from W2's or W-2G's and did not make any estimate payments for the tax year. They cannot have any schedule income or 1099-Misc. Otherwise, Toledo residents should use the new . The new form allows for the combining of non-wage income, but does not allow for any offset of losses from such aggregation against wage income.
Non-Residents of Toledo must file using the new Non-Resident Individual Return. (Our previous NRR form has been incorporated into the new Non-Resident Individual Return. This form must be used when the non-resident has wage income that had Toledo Tax withheld during the time that he/she worked outside of Toledo.) Also note that as a non-resident, any income from pass-through entities should have been filed and paid at the entity level and should not be included on this return. Note that Toledo wage income cannot be offset with losses from other Toledo sources.
Businesses - Toledo now has a separate form for filers of Federal Form 1065, 1120, 1120S and 1041.
Effective January 1, 2016, and in accordance with revisions to Ohio Revised Code Section 718.27, INTEREST AND PENALTIES, please note that for Toledo tax returns for the tax years beginning on or after January 1, 2016, the following changes to interest exists:
Interest -- 5% per annum (4.167% per month or fraction thereof) on all unpaid income tax, unpaid estimated income tax, and unpaid withholding tax. This rate is in effect through December 31, 2016. Interest rate for 2017 is 6% per annum (0.5% per month or fraction thereof).
Returns required to be filed or payments to be made before January 1, 2016, but filed or paid after that date are subject to interest and penalties prescribed in Toledo Municipal Code 1905.11, Interest and Penalties, effective prior to the revisions to ORC 718.27.
Effective January 1, 2016, and as mandated by the State of Ohio Revised Code Section 718.03, the following filing frequencies and due dates are established:
Monthly Withholding: Taxes required to be deducted and withheld shall be remitted monthly to the Tax Administrator if the total taxes deducted and withheld or required to be deducted and withheld by the employer, agent, or other payer on behalf of the municipal corporation in the preceding calendar year exceeded two thousand three hundred ninety-nine dollars ($2,399), or if the total amount of taxes deducted and withheld or required to be deducted and withheld on behalft of the municipal corporation in any month of the preceding calendar quarter exceeded two hundred dollars ($200). Payment shall be made so that the payment is received by the tax administrator not later than fifteen days after the last day of each month.
Quarterly Withholding: Any employer, agent of employer, or other payer not required to make monthly payments of taxes required to be deducted and withheld shall make quarterly payments to the tax administrator not later than 30 days following the end of each calendar quarter.
Toledo shall permit spouses to file a joint return commencing with the 2016 tax year.
ESTIMATED TAX PROVISIONS
Effective January 1, 2016, and as mandated by the State of Ohio Revised Code Section 718.08, the following rules and due dates are established:
Every taxpayer shall make a declaration of estimated taxes for the current taxable year, on the form prescribed by the tax administrator, if the amount payable as estimated taxes is at least two hundred dollars ($200).
The required portion of the tax liability for the taxable year that shall be paid through estimated taxes made payable to Toledo, including the application of tax refunds to estimated taxes and withholding on or before the applicable payment date, shall be as follows:
(a) On or before the fifteenth (15th) day of the fourth month after the beginning of the taxable year, twenty-two and one-half (22.5%) percent of the tax liability for the taxable year.
(b) On or before the fifteenth (15th) day of the sixth month after the beginning of the taxable year, forty five (45%) percent of the tax liability for the taxable year.
(c) On or before the fifteenth (15th) day of the ninth month after the beginning of the taxable year, sixty-seven and one-half (67.5%) percent of the tax liability for the taxable year.
(d) On of before the fifteenth (15th) day of the twelfth month of the taxable year, ninety percent (90%) of the tax liability for the taxable year.