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2014 NORTHWOOD INCOME TAX RETURN
File with
INCOME TAX DEPARTMENT
6000 WALES ROAD
NORTHWOOD, OHIO 43619
OR FISCAL PERIOD
MAKE CHECKS/MONEY ORDERS PAYABLE TO
NORTHWOOD DEPT. OF TAXATION
TO
CALENDARYEARTAXPAYERSFILEONORBEFORE
APRIL15ORTHEIRSDUEDATE.FISCALANDPARTIALYEARS
FILEWITHIN120DAYSOFENDOFPERIOD.
Phone (419) 693-9326 • Fax (419) 690-1691
www.ci.northwood.oh.us
Resident
Non-Resident
Date Moved into NW
Date Moved out of NW
Phone
Will you have taxable income next year?
Yes
No
If you rent, please give name and
address of landlord.
ENTER
Name
NAME
Address
AND
Soc. Sec. No. (H)
ADDRESS
Soc. Sec. No. (W)
Fed. I.D. No.
SECTION A Enter your TOTAL wages, salaries, bonuses, incentive payments, commissions and other compensation BEFORE ANY PAYROLL DEDUCTIONS
received between January 1st and December 31 from each employer or source. INCLUDE SICK PAY that is paid by employer.
ATTACH W-2 FORMS OMIT LINES 2 THRU 5 IF TOTAL TAXABLE INCOME IS REPORTED ON LINE 1
(A1)
Name of Employer
(A2)
City or Twp. Where Employed
(A3)
Northwood Tax Withheld
(A4)
Other City Tax Withheld
(A5)
(Credit Allowed 11⁄2 %)
1. Total Wages, Salaries, Tips and other employee compensation (Attach all W-2’s)..........................................................................
2. a. Profits from Section C, Page 2 ........................................................................................................ 2a $
b. Losses from Section C, Page 2
(carry forward)
3. Total Income (Total of Lines 1 and 2) ................................................................................................................................................
4 a. Items not deductible from Line M Schedule X .................................................................................... Add
b. Items not taxable from Line Z Schedule X ......................................................................................Deduct
c. Difference between Lines 4a, and 4b, to be added to or subtracted from Line 3.........................................xxxxxxxxxxxxxxx
5. a. Adjusted Net Income (Line 3 plus or minus 4c)..........................................................................................................................
b. Amount allocable to Northwood if Schedule Y is used (
% of Line 5a)..........................................................
c. Allocable Net Loss per previous year’s Northwood Income Tax Return (Limited to 5 years)....................................................
6. Amount subject to Northwood Income Tax (Line 1, or Line 5b less 5c – see instructions) .............................................................
7. Northwood Income Tax 11⁄2% — Multiply Line 6 by .015 (or Line 1 where applicable) ....................................................................
8. Credits (A) Northwood Tax withheld by employer(s) from Section A ................................................... 8A $
(B) Other city tax withheld on W-2 wages (Limit 11⁄2%)................................................................... 8B $
(C) Income Taxes paid City of
(Limit 11⁄2%) ............................................ 8C $
(D) Payments on Current Declaration.............................................................................................. 8D $
(X) Total Credits Allowable..........................................................................................................................................................
9. a. Balance of Tax Due (If Line 7 is greater than Line 8X) (Amounts under $5.00 will not be refunded or billed) ..........................
b. (If paying after due date) INTEREST
PENALTY
LATE FEE
TOTAL
10. Amount payable to Northwood Dept. of Taxation (Line 9a plus 9b) .................................................................................................
11. If line 8X is greater than line 7, enter refund amount $
credit to next year $
ENTER AMOUNT OVERPAID
(A6)
Wages, etc.
1
$
3
$
4c
5a
5b
5c
6
7
$
$
$
$
$
$
8X
9a
9b
10
11
$
$
$
$
$
DECLARATION OF ESTIMATED TAX FOR YEAR 2015
12. Income Subject to Tax $
TIMES TAX RATE OF 1.5% (.015) ...................... FOR GROSS TAX OF
13. Less Expected Tax Credits:
a. Tax Withheld by Employer............................................................................................................... 13a $
b. Payments on Taxable Income to Another Municipality .................................................................. 13b $
c. Prior year overpayments not refunded .......................................................................................... 13c $
d. Total Credits (Add Lines 13a Plus 13b Plus 13c)) ......................................................................................................................
14. Net Tax Due (Line 12 Minus Line 13d) ..............................................................................................................................................
15. Amount Paid with This Declaration (22.5% of Line 14) ........................................................................... 15 $
16. Amount Enclosed (Line 15 Plus Line 10) ..........................................................................................................................................
12 $
13d $
14 $
16 $
The undersigned declares that this return (and accompanying schedules) is a true, correct and complete return for the taxable period stated and that the figures used
herein are the same as used for Federal income tax purposes, adjusted to the ordinance requirements for local tax purposes, and if an audit of Federal return is made
which affects tax liability shown on the return an amended return will be filed within three months. If this return was prepared by a Tax Practitioner, may we contact
your practitioner directly with questions regarding the preparation of this return?
Yes
No
Signature of Person Preparing if Other Than Taxpayer
Address of Firm or Employer
Date
Signature of Taxpayer or Agent
Date
Signature of Spouse (If Joint Return)
Date
Instructions
SECTION C
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INCOME OTHER THAN W-2 INCOME — YOU MUST ATTACH APPROPRIATE FEDERAL SCHEDULE(S)
1
PROFIT (OR LOSS) FROM BUSINESS OR PROFESSION, SCHEDULE C ............................................. NET INCOME SECTION 1
$
2
SUPPLEMENTAL INCOME FROM SCHEDULE E .................................................................................... NET INCOME SECTION 2
$
3
ALL OTHER TAXABLE INCOME ................................................................................................................ NET INCOME SECTION 3
$
Enter description of items in 3 above.
Received From
For (describe)
Amount
SECTION C TOTALS
a. Profits Showing Above ................................... $
b. Losses Showing Above .................................. $
Carry Profits to Page 1 Line 2a.
Carry Losses to Page 1 Line 2b.
SCHEDULE X — USE THIS RECONCILIATION WITH FEDERAL INCOME TAX RETURN ONLY IF ITEM IS INCLUDED ON LINE 2 PAGE 1
ITEMS NOT DEDUCTIBLE
ADD
a. Capital loss (Excluding Ordinary Losses) ..................... $
b. Interest and/or Other Expense Incurred in the
production of non-taxable income at least 5% of Line z.
c. All Income Taxes paid or accrued ................................
d. Net operating loss deduction per Federal return .........
e. Payments to partners (from Federal, Form 1065) ........
f. Sick pay not included in Line 1 above .........................
g. Contributions in excess of 5% of Net Profits
h. Other .............................................................................
m. Total Additions (enter as Line 4a Page 1) ....................
SCHEDULE Y — BUSINESS ALLOCATION FORMULA
ITEMS NOT TAXABLE
DEDUCT
n.
o.
p.
r.
s.
Capital gain (Excluding Ordinary Gains) ...................... $
Interest earned or accrued ...........................................
Dividends (less Federal exclusions) .............................
Unreimbursed travel expense (per Fed. Form 2106) ...
Other income exempt from Northwood Income Tax ...
Explain
z.
Total Deductions (enter as Line 4b Page 1) ................. $
a. Located
Everywhere
b. Located in
Northwood
c. Percentage
(b ÷ a)
STEP 1. Average Value of Real & Tangible Personal Property ........................
Gross Amount Rentals Paid Multiplied by 8......................................
TOTAL STEP 1....................................................................................
%
STEP 2. Gross Receipts From Sales Made and/or Work or
Services Performed............................................................................
%
STEP 3. Wages, Salaries, Etc., Paid ................................................................
%
STEP 4. Total Percentages...............................................................................
%
STEP 5. Average Percentage (Divide Total Percentages by Number of Percentages Used) - Carry to Line 5b
%
SCHEDULE Z — PARTNERS’ DISTRIBUTIVE SHARES OF NET INCOME
3. Distributive Shares of Partners
1.
Name of each partner
2. Address
Percent
(a)
4. Other
Payments
Amount
$
5. Taxable
Percentage
$
$
(b)
(c)
(d)
7.
TOTALS
100
$
6. Amount
Taxable
xxxxxxxxx
Print Instructions
CITY OF NORTHWOOD
INCOME TAX DEPARTMENT
6000 WALES ROAD
NORTHWOOD, OHIO 43619-1480
Phone (419) 693-9326 Fax (419) 690-1691
www.ci.northwood.oh.us
INCOME TAX RETURN INSTRUCTIONS
Extensions for filing must be received with the City Income Tax Department
on or before April 15 or the IRS Due Date. If an extension is not requested
by this date, the return will be considered LATE and a late filing fee will be
assessed as follows:
• $5.00 for the first month of delinquency and
• $10.00 for each month thereafter.
This is a penalty for not filing returns on time and will be assessed whether
or not any tax is due.
If you need assistance call or visit our office at 6000 Wales Road. Our
telephone number is (419) 693-9326 and our fax number is (419) 690-1691.
GENERAL INSTRUCTIONS
1. WHO MUST FILE: A return must be filed by individuals, partnerships,
corporations and any other entity having income taxable by the City of
Northwood, providing the Tax was not withheld. All Northwood residents
having a taxable income must file whether or not tax has been withheld.
2. WHEN AND WHERE TO FILE RETURNS: Taxpayers who end their
taxable year on December 31, must file on or before the following April
15 or the IRS Due Date. Taxpayers on a fiscal or partial year basis must
file within 120 days following the end of such period. If deadline cannot
be met, a request for extension must be filed and approved by the tax
administrator on or before the due date of April 15 or the IRS Due Date.
If no request for extension is filed, the late filing fee will be applied.
The Return is to be filed with the Income Tax Department, City Hall,
Northwood, Ohio. Total amount due must be paid when the return
is filed. Checks or money order should be made payable to the
City of Northwood —Income Tax Dept. Electronic check or credit/debit
card payments accepted through Official Payments at 1-800-272-9829
www.officialpayments.com for a small convenience fee.
3. TAXABLE INCOME: Northwood Income Tax at the rate of 1.5 percent is
levied on the following:
A. On all salaries, wages, commissions and other compensation
earned by resident individuals of the City of Northwood.
B. On all salaries, wages, commissions and other compensation
earned by non-resident individuals of the City of Northwood for
work done or services performed or rendered in the City of
Northwood.
C. On the net profits attributable to Northwood, earned of all resident
unincorporated businesses, professions, and other activities derived
from work done or services rendered or performed and business or
other activities conducted in the City of Northwood.
D. On the portion of the distributive share of the net profit earned of a
resident individual, partner or owner of a resident unincorporated
business entity attributable to Northwood and not levied against
such unincorporated business entity.
E. On the net profits attributable to Northwood earned of all nonresident unincorporated businesses, professions or other activities,
derived from work done or services performed or rendered and
business or other activities conducted in the City of Northwood.
F. On that portion of the distributive share of the net profits earned
of a resident individual, partner or owner of a non-resident
unincorporated business entity not attributable to Northwood
and not levied against such unincorporated business entity.
G. On the net profits earned of all corporations derived from work
done or services performed or rendered and business or other
activities conducted in the city of Northwood.
4. WHAT CONSTITUTES NET PROFIT: Net profit is the income from the
operation of a business, profession or enterprise and from the use of
property, after the provision for all ordinary and necessary expenses,
either paid or accrued, in accordance with the accounting system
used by the taxpayer for Federal Income Tax purposes, adjusted to
the requirement of the Northwood Income Tax Ordinance. Note that
City, Federal or State Taxes, based on income, are not deductible in
determining net profit.
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Dear Taxpayer:
PLEASE READ FOLLOWING INSTRUCTIONS CAREFULLY.
•ALLTaxpayersmustfileby4/15ortheIRSDueDate.
• ATTACH W-2’s (where indicated).
• ATTACH copy of page 1 of 1040 or 1040A.
• ATTACH copies of your Federal Schedules related to Income and
Deductions reported. (example: Schedule E, Schedule C, etc.)
• ALL Residents of Northwood must file a return even if tax has
been withheld by another city and no balance is due.
• MAKE sure your Remittance for Tax Due is enclosed with your return.
Make checks payable to the NORTHWOOD DEPT. OF TAXATION.
• TAXPAYERS filing on a fiscal year basis should substitute
appropriate dates.
5. ALLOCATIONS OF PROFITS: The business allocation percentage
formula is to be used by corporations or non-resident business entities
doing business within and outside of Northwood if actual record of their
Northwood profits are not maintained. Determine the ration of the
Northwood portion of:
(1) Average value of real and tangible property;
(2) Total sales regardless of where made;
(3) Total compensation paid to all employees:
Add the ratios obtained and divide by the number of ratios to obtain
business allocation percentage. A ratio shall not be excluded from the
computation because it is allocable entirely within or outside of
Northwood. This computation is to be reported as Schedule Y. Page 2
of Form.
6. CHANGE IN TAX LIABILITY: An amended Northwood Return is required
within three months of the final determination of any changed tax liability
resulting from Federal audit, Judicial decision, or other circumstance.
7. PENALTIES AND INTEREST: Penalty and interest for late filing and
failure to file, shall be imposed as provided by the Ordinance. Losses
from the operation of a business (including rental losses) are not
deductible from W-2 income, but they may be carried forward for a
period of five (5) years to apply against subsequent profits. Interest —
1% per month or fraction thereof on unpaid tax. Penalty — 1% per
month or fraction thereof on unpaid tax. Late filing fee — $5.00 for
the first month, $10.00 for each month thereafter.
LINE BY LINE INSTRUCTIONS
HEADING: If this return is made for a period other than the calendar year,
insert the beginning and ending date of that period. If this return
shows incorrect social security numbers or an incorrect Federal
Identification number, please make the necessary changes in
the spaces provided.
ANSWER THE APPLICABLE QUESTION ON PAGE SECTION A —
Complete per instructions (on SECTION A).
LINE 1.
Enter total income listed on Schedule A. IF YOU HAVE NO
OTHER TAXABLE INCOME,YOU MAY SKIP FROM HERE TO
LINE 7.
LINE 2a.
Enter total PROFITS from Section C Page 2.
LINE 2b.
Enter total LOSSES from Section C Page 2. These Losses are
not to be deducted from other income. They will be carried forward for a period of five (5) years to apply against subsequent
profits. All appropriate federal schedules must be attached.
LINE 3.
Enter the total of Lines 1 and 2.
LINE 4a., b. and c. are used to reconcile your Northwood Return with
your Federal Tax Return. This is done by the use of Schedule X.
(See instructions for Schedule X.)
4a. Enter total of the non-deductible items from Line M,
Schedule X.
4b. Enter total of non-taxable items from Line Z Schedule X.
4c. Enter excess of non-deductible or non-taxable items from
4a. and 4b.
Print Instructions
LINE 5a.
Enter income from Line 3 plus non-deductible items or less
nontaxable items from Line 4c.
LINE 5b.
Enter amount allocable to Northwood if business allocation
formula (Schedule Y Page 2) is used, or enter the amount from
Line 5a if allocation is not used.
LINE 5c.
Prior year loss carried forward if business profits are reported.
(Attach schedule).
LINE 6.
Enter amount subject to Northwood Income Tax from Line 1
if W-2 wages are only income, or 5b less 5c if used.
LINE 7.
Enter 1.5 percent of amount shown on Line 6. This can be
computed by multiplying Line 6 or 1 by .015. For example:
4750.25 x .015 equals a tax of $71.25.
SECTION 8
LINE 8A. Enter Northwood tax withheld as reported in A3.
LINE 8B.
Enter the other city tax withheld (limited to 1.5% of Wages in
A6). Example: Your W-2 income was $3,000.00 – tax withheld
for another city was $60.00. This tax was withheld at the rate
of 2%. Credit can be taken of $45.00 (limited to 1.5% times
$3,000.00).
LINE 8C.
A Northwood resident may take credit for income tax paid
directly to another municipality (Do not include tax withheld by
an employer). The credit claimed, however, may not exceed 1.5
percent of the income taxed by such other municipality. Enter
the result of this calculation on Line 8C.
LINE 8D.
Enter amount you have paid on Declaration of Northwood
Income Tax, if any.
LINE 8X.
Enter total of line 8A, B, C + D, on Line 8X.
LINE 9.
If Line 7 is greater than Line 8X, the difference should be
entered on Line 9a. A remittance payable to the City of
Northwood Income Tax for the amount of Line 9a. must
accompany your Return when filed. If the balance due is less
than $5.00 the taxpayer need not make the payment.
LINE 11.
If Line 8X is greater then Line 7, enter the difference in the
box opposite Line 11. If, upon audit, the amount is found to be
correct it may either be refunded or credited to your next year’s
tax liability. Please indicate on this line whether you want a refund.
If the overpayment is less than $5.00 no refund will be issued.
LINE 12.
Enter Income Subject to Tax in 2014 (times 1.5% (.015))
for Gross Tax
LINE 13.
a. Enter Tax Withheld by Employer.
b. Enter Payments on Taxable Income to Another Municipality.
c. Add lines 13a plus 13b for Total Credits.
LINE 14
Net Tax Due (line 12 minus line 13c)
LINE 15
First Quarter estimated tax due (22.5% of line 14)
LINE 16
Amount Enclosed (Line 11 plus Line 15)
ATTACHMENTS ARE REQUIRED TO ALL RETURNS:
• W-2’s
• Page 1 of 1040 or 1040A
• Federal Schedules of Income related to Income
and Deductions reported
• Other city tax return if taking credit for taxes paid directly
to that city on Line 8c
COMPLETE ONLY IF APPLICABLE
SECTION C — OTHER TAXABLE INCOME
List all the taxable income from Federal schedules and/or 1099’s. You must
attach appropriate schedules.
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SCHEDULE X — RECONCILIATION WITH
FEDERAL INCOME TAX RETURN
This schedule is used to adjust Federal Net Income to your Northwood Taxable
Income. The left hand column is for items deductible on the Federal Return but
not deductible under the Northwood Ordinance. The right hand column is for
items taxable on the Federal Return but not taxable by Northwood.
EXAMPLE:
1. If Line 1 Page 1 did not include sick pay, then such income must be
entered on Line F this schedule, since it is taxable.
2. Non-residents who perform services both within and outside of
Northwood may determine the amount of salaries, wages, etc., not
taxable by dividing total days worked outside of Northwood by total
of all days worked and multiplying total salaries, wages, etc., by the
resulting decimal. This amount should be entered on Line S with
explanation.
3. Business and Professions which deduct State and City Income Taxes
on Schedule C, must list these items on Line C of Schedule X.
4. If Line 3 includes income subject to Ohio tax on intangibles, such as
dividend and interest, then such dividend and interest income may be
listed on Line 1. Enter the total of these columns on Line 1a and 4b Page 1.
SCHEDULE Y BUSINESS ALLOCATION FORMULA
The business allocation percentage formula is to be used by Corporations,
unincorporated businesses, partnerships, professions, or other entities
doing business within and without this municipality if actual records of
their local business are not maintained. The net profits attributable to this
municipality of a taxpayer conducting a business, profession or other
activity both within and without the municipality shall be determined under
the separate accounting method or in accordance with the three factors
Business Allocation Percentage Formula as provided in Section 718.02 of
the Revised Code of Ohio, and in accordance with the rules and regulations
adapted by the Commissioner of Taxation.
SCHEDULE Z PASS-THROUGH ENTITIES
(PARTNERSHIPS, S CORPS, LLC’S, ETC.)
If a pass-through entity owns rental properties, conducts business,
performs services, solicits sales, operates or maintains an office in
Northood, the tax is imposed first and foremost on the entity based on
the income that is attributable to Northwood. Resident individual general
partners, members, and shareholders must then report their untaxed
distributive shares. Losses are treated identically.
SOME ITEMS TAXED
• Bonuses
• Commissions
• Incentive Payments
• Ordinary Gain From
Form 4797
• Ordinary Portion of
Lump Sum Distribution
• Other Compensation
• Partnership Income
• Profit Sharing
• Rental Income
• Royalties
• Salaries
• Sick Pay
• Sub Pay
• Tips
• Wages
• Gambling Winning
(Over $10,000)
ITEMS NOT TAXED
• Alimony Received
• Annuities Received
• Insurance
• Interest and Dividends
From Intangible Property
• Military Pay, Reserve Pay
• Pensions
• Welfare
• Unemployment
Insurance Benefits
FEDERAL ADJUSTMENTS
NOT ALLOWED
• Keogh or HR-10
• I.R.A.
• Tax Sheltered Annuities
• Cafeteria Plans
(EXCL 125 & 129)
FEDERAL ADJUSTMENTS
ALLOWED (BUSINESS
RELATED)
• Federal Form 2106