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Income Tax - Frequently Asked Questions
Q. What is the city tax rate?
ANSWER: The City of Barberton has a 2.0% tax rate.
Q. How are my tax dollars used?
ANSWER: To provide fundsfor the purpose of general municipal operations, maintenance, new equipment, extensions and enlargements of municipal services, facilities and capital improvements.
Q. Where do I send my form and payments? What if I have questions?
ANSWER: The Barberton taxes are now being processed by CCA (Central Collection Agency). They are located at 205 St Clair Ave, Cleveland, Ohio 44113. You may reach them by phone at 1-800-223-6317 or on their website www.ccatax.ci.cleveland.oh.us. Their office hours are Monday through Friday 8:30 a.m. until 4:30 p.m.
Q. I work in a city that has a 1.3% tax rate and I am a Barberton resident. My employer only withholds local taxes to my city of employment. How do I meet my 2% total tax obligation to my
city of residence?
ANSWER: You may request that your employer to withhold an additional .7% in local tax to your city of residence. The .7% due your city of residence is considered a courtesy withholding by your employer. Your employer is not required to withhold the courtesy withholding tax, however, many employers will withhold the courtesy withholding tax if you request. Your employer may contact CCA at (1-800) 223-6317 if they have any questions and to set up a withholding account.
Q. What if my employer chooses not to withhold the courtesy withholding tax for me?
ANSWER: You should set up an estimate and make estimated payments in order to satisfy your total tax obligation. Estimated payments are due on the 30th of April, June, September and January 31st. As a Barberton resident, you are required to file an individual tax return on or before April 15 th of the year following the year in which your taxable income was earned or received. Your total tax obligation is reduced by the estimated taxes paid and the amount of taxes paid. You pay the final balance due with your return. If your estimated tax payments exceed your tax liability, you may claim a refund of the excess payments or have the overpayments carried-forward to the next year.
Q. I am a resident of Barberton and work in a city that has a 2% tax rate. Do I still have to file a Barberton return?
ANSWER: Yes. All Barberton residents must file a city tax return each year, even if no taxes are due.
Q. I am a resident of Barberton and I work in a non-taxing district. Do I have a tax obligation and if so, to whom?
ANSWER: In the event you work in an unincorporated area or township that has no income tax, your entire local tax obligation is to your resident city, in this case, Barberton.
Q. How do I determine where my local tax is owed?
ANSWER: Local tax is due first to the city in which the income was actually earned. You may also owe taxes to your resident city if your resident city has a tax rate higher then the tax rate of your work city.
Q. My spouse and I file separately at the federal/state levels. Do I have to file the same way when filling my Barberton return?
ANSWER: No. We would prefer you file a joint return since there are no benefits for filing separately. However, if for some reason you need to file separately, you may do so. Once you file separately you should continue to do so for each year thereafter.
Q. How do I know that the federal tax information I submit with my return will remain confidential?
ANSWER: Section 880.11 (E) of the cities Income Tax Ordinance No. 217-2000 states “any information gained as the result of any returns, investigations, hearings, or verifications required or authorized by this ordinance shall be confidential and no person shall divulge such information except for official tax collection purposes, or in accordance with proper judicial order or upon receipt of a waiver signed by the person who submitted the return or offered pertinent information or in accordance with subsection “F” of this section. Any person divulging such information in violation of this section shall upon conviction is deemed guilty of a misdemeanor, punishable as provided in Section 880.99”.
Section 880.11 (F) reads “The Director or his/her authorized representative is hereby authorized to enter into agreements with the United States Commissioner, of the Internal Revenue Service, or the Internal Revenue Service District Director the State of Ohio Tax Commissioner, or the heads of other State and local taxing authorities, providing for the disclosure and exchange, for tax collection purposes only, of returns or return information in their respective jurisdictions”.
Section 880.99 (B) reads “Whoever violates Section 880.11 (E) shall be fined not more than five hundred dollars ($500.00) or imprisoned not more than six months, or both. Each disclosure shall constitute a separate offense. Any person found guilty shall be punishable by immediate dismissal”.
Q. I am not a resident of Barberton, but I work in Barberton. Do I have to file a Barberton return?
ANSWER: If your employer correctly withheld Barberton tax from your wages, then NO you are not required to file. If for some reason your employer did not withhold correctly or you are self-employed and you owe city tax, then YES you must file a return to report and pay your tax liability.
Q. Do I have to file a Barberton return if I am under eighteen years of age?
ANSWER: Individuals who are seventeen or younger are not subject to Barberton tax and are not required to file returns. However, if you worked for an employer located in Barberton and city tax was withheld from your earnings, you would want to file a return to request a refund of the taxes withheld. When filing your return, be sure to attach a copy of either your birth certificate or driver’s license for verification of age.
Q.
When do I become subject to Barberton tax?
ANSWER: The day you turn 18 years of age.
Q. How do I know what city I live and/or work in?
ANSWER. First, don’t always rely on the mailing address to
determine the city in which you live or work. The U.S. Postal Service
establishes mailing addresses based upon the Post Office that services
your area, not the city in which you actually live or work. Similarly,
you cannot rely on your School District, since they don’t
always follow the city boundaries.
If you are a registered voter, it should be easy to determine
your city of residence. If you voted for the mayor of a city,
you live in that city.
If you moved recently or are not a registered voter, you may
call the tax department at (330)-848-6776 and tell the representative
that you wish to verify your city of residence or location of
your employer.
Employers may also call the tax department at (330) 848-6776
to verify the city of residence of their employees or the cities
in which their employees are working.
Q. Can someone help me prepare my return?
ANSWER: Yes. The tax office staff is available to assist you in completing your city return every day Monday through Thursday, 7:00 a.m. to 5:30 p.m. at no cost to you. The Central Collection Agency (CCA) sends representatives to our office to help prepare forms, please call the Tax Department at (330) 848-6776 for the dates and times. If you need assistance at a time CCA is not here, you may schedule an appointment with the Income Tax Specialist in the Barberton Tax office.
If you just have a question you need answered, call us at (330) 848-6776, Monday through Thursday, 7:00 a.m. to 5:30 p.m.
If you want help with your Federal or State returns, contact the IRS at 1-800-829-1040 or the Ohio Department of Taxation at 1-800-282-1780.
Q. I’m starting a business. What do I need to do about city taxes?
ANSWER: You will normally have to remit two types of city taxes: the net profit tax and (if you have employees) the employee withholding tax.
The first is the tax due on profits of your business, whether your business
is a sole proprietorship, corporation, partnership, or any other
business entity. S-corporations, partnerships, limited liability
companies (LLC’s) and any other type of pass-through entities
file their returns at the entity level on behalf of all partners
or stock holders. All businesses, with the exception of sole proprietorships,
file their city taxes using the Net Profit Return.
Sole proprietorships file by reporting their Federal Schedule C income and those with rental property file their Federal Schedule E income on their personal return using the Individual Return.
To remit the second type of tax, the tax withheld from your employees’ wages, you will need to establish a withholding account with us. You do this by calling CCA at (1-800) 223-6317 and requesting a registration form or visit thier website www.ccatax.ci.cleveland.oh.us for copies of forms to print.
Q. I am self-employed but my business has not shown a profit. Am I required to file a return?
ANSWER: Yes. All residents conducting business or non-residents
conducting business within Barberton must file an annual return
reporting the net profits or net losses of said business. The leasing
of real or tangible property (i.e. income from rental property)
that you own are considered a taxable business activity that must
be reported. The Income Tax Ordinance authorizes a five year loss
carry-forward, but if a business loss is not reported within twelve
months from the period the loss was incurred, the loss carry-forward
privilege is nullified.
Q. I owe city taxes but I am unable to pay my full liability at the time my return is due. Should I still file my return?
ANSWER: Yes, you should file your return by the due date whether or not you are able to pay the entire amount of tax you owe. You will receive a bill for the balance owed along with any late payment and interest charges. You should contact CCA at (1-800) 223-6317 to make arrangements for payment charges shown on the bill.
Q. I’m a partner in a non-resident partnership and a Barberton resident. Do I owe Barberton tax on my income from the partnership?
ANSWER: Yes. A Barberton resident is taxed on all of his/her income no matter where earned or received. This includes their distributive share of partnership, s-corporation or any other pass-through business entity. However, full credit (up to 2.0%) is given for any taxes paid to other localities on the same income being taxed by Barberton.
Q. I’m serving in a fiduciary capacity. What is my responsibility for filing?
ANSWER: Trusts and estates conducting business, including rental property, within the city of Barberton are required to file a city Net Profit Return and report, at the entity level, all net profits or losses earned or incurred as a result of business activity conducted within the city. Tax is due on the net profits reported as having been earned in the city. Since the tax is paid at the entity level of the trust or estate, beneficiaries are not required to pay city tax on income derived from trusts or estates.
Q. What are the top ten mistakes people make in filing a tax return?
10. Failure to sign return.
9. Failure to file an estimate.
8. Failure to advise of address changes.
7. Failure to file a return for the year moved in or out.
6. Failure to allocate taxes paid when allocating income for move in or out.
5. Failure to pay 2nd, 3rd, and 4th quarter estimate payments.
4. Failure to attach required Federal Schedules, forms and statements.
3. Failure to attach W-2 forms and/or 1099 forms.
2. Failure to include payment.
1. Failure to use the largest figure shown on the W-2 form.
If you have any questions, please contact the Central Collection Agency at (1-800) 223-6317.
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