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Income Tax

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1. What is the City of Marysville Income Tax rate and what type of income is taxable?

As of July 1, 2010, the income tax rate is one and one half percent (1.5%). Generally, gross income (including income which is deferred for State and Federal purposes) and business net profits are taxable at the local level. A list of taxable items is available on our return instructions.

2. Can I forward my form to the Income Tax Division online?

Yes, visit our Online Tax Tool and use your account number to file online. Partial year residents are not eligible for this service.

3. I reside in Marysville, my wages are my only taxable income and my employer is withholding my Marysville tax liability properly. Do I need to file a Marysville tax return?

Yes, the City of Marysville has mandatory filing for all persons age 18 and over, who are residents, or who do business within Marysville to file an annual income tax return.

4. If I work outside Marysville, does the City receive any local income tax from me?

The City only receives income tax from you if your employer does a “Courtesy Withholding” for the City of Marysville.

5. I am a Marysville resident and work in an area with no municipal tax. How often must I file with Marysville?

You must file an annual tax return by April 15th of each year. As part of your annual tax return, a declaration of estimate may be required, when your tax liability to the City of Marysville exceeds two hundred dollars ($200.00). The first estimate should be paid with the annual tax return. Subsequent payments are due June 15th, September 15th, and December 15th of the current year. If no estimate payments are made, then a 10% penalty will be assessed at the time of filing, on the amount of tax due. Beginning with tax year 2016 and moving forward, the penalty will be increased to 15% per ORC 718. Interest may also apply.

6. Is it possible to amend my estimate during the year?

Yes. On the reminder notices sent for the second, third and fourth quarters, you may cross out the current declaration and write in the amended amount and pay the amended amount.

7. Is there an age limit for individuals subject to Marysville Income Tax?

Yes, all individuals who are under eighteen years old are exempt from City of Marysville Income Tax and are eligible for a refund of Marysville tax if it was withheld in error (if the amount is greater than $5.01. Beginning in tax year 2016 and moving forward, it will be $10.01). There is no upper age limit.

8. If I lived in Marysville for a portion of the year or turned eighteen during the year, do I still need to file?

Yes, but you will only be responsible to pay taxes on income earned during the time you either lived in Marysville or were over the age of eighteen. Copies of paystubs before and after move in/out or turning 18 is helpful.

9. I am retired, my only income is from Social Security, company pension, interest and/or dividends...am I required to file a City of Marysville Income Tax Return?

No. However, you must file a Declaration of Exemption (Form DOE) providing the city with the proper reasoning for exemption status to remove you from our active filing list.

10. Can I receive assistance in preparing my city of Marysville Tax Return?

Yes. The Income Tax Division personnel can assist you either by mail or in person. The Income Tax office is open Monday through Friday; 8:00 am - 5:00 pm. Please call 937-645-7350, or visit the Income Tax Office (209 S. Main St.). Please bring with you a copy of all your Federal Form W-2's and 1099’s for wages and a copy of your Federal Income Tax Return to help us assist you in preparing your Marysville Income Tax Return.

11. When can I expect my Income Tax Refund from the City?

The City has 90 days from the date your taxes were due or the date your completed refund request is received to review your request, whichever is later. If your return is complete and approved, a refund check will be mailed to you. A refund request is not considered received unless it is complete and all the required information has been provided.

12. How do I determine where my local tax is owed?

In Ohio, you have an income tax obligation to both your employment city and your resident city. Your employer is required by law to withhold only your work place city tax. You may request your employer to withhold your resident city tax, but they are not required to do so.

13. I am over eighteen, but currently attend college. Do I need to file a Marysville tax return?

Yes, if Marysville is your permanent residence, even if you do not live there full time. Permanent residence is established by where you maintain your driver’s license, voter registration and file your federal and state tax returns, etc.

14. My spouse and I file separately at the federal/state levels. Do I have to file the same for municipal purposes?

No, a husband and wife may elect to file separate or joint city returns regardless of their federal or state filing status. However, there is no advantage to filing separate at the local level.

15. How do I know what city I live and/or work in?

A common misconception is that your mailing address or school district can determine the city in which you live or work. However, please refer to the City of Marysville Corporation Limits Map or call the City of Marysville at (937) 645-7350 to verify your city of residence.

16. I’m starting a business. What do I need to do about city taxes?

You will normally have to remit two types of city taxes: the net profits 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 or partnership. Incidentally, all net profits earned by S-corporations are taxed at the corporate level. As such, the individual shareholders of S-corps are not taxed. All businesses, with the exception of sole proprietorships, file their city taxes using the Business Questionnaire.

Sole proprietorships file by reporting their Federal Schedule C income on the proprietor’s individual city return, if reporting tax to more than two cities; they must complete Schedule Y - Business allocation formula. Additional information is available in the return instructions.

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 filing a Business Registration, which is a simple questionnaire. Employers are liable for all city withholding taxes that should have been withheld from their employee’s wages even if those taxes were not, in fact, withheld. Because of this obligation, you’ll want to make sure you call (937) 645-7350 to request a copy of the Business Registration form.

17. As an employer can I remit my W-2 information on magnetic media?

Yes, refer to the W3 instructions for details.

18. How can I make sure my employer is withholding the correct local tax from my wages?

If you earned your wages in Marysville, multiply your gross wage figure by 1.5% (.015). Whether hourly or salaried, gross wages are determined before any deductions or deferments (i.e., 401K deferrals). The result of this computation should equal the local tax that was withheld from your wages. If you find that the correct local tax is not being withheld, please contact your employer to have it corrected.

19. I’m self-employed but my business has not shown a profit. Am I required to file a return?

Yes, anyone conducting a business in Marysville must file an annual return and report 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 is considered a taxable business activity that must be reported.

20. 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?

Yes, you should file your return by the due date whether or not you are able to pay the amount of tax that you owe. You will receive a bill for the unpaid taxes along with the late payment penalty and interest. You may call (937) 645-7350 to arrange for payment of the charges shown on the bill.

21. I’m a partner in a partnership and a Marysville resident. Do I owe Marysville tax on my income from the partnership?

A Marysville resident is taxed upon his/her share of all income earned by partnerships (wherever located) in which he/she is a partner.

22. What are the top 10 mistakes people make in filing a tax return?

10. Failure to sign return or attach check.
9. Failure to attach of W-2’s.
8. Failure to use gross compensation, Box 5 or 18 on W-2.
7. Failure to file return for the year taxpayer moves in or out.
6. Failure to advise of address change.
5. Failure to mail return.
4. Failure to file estimates.
3. Failure to attach Schedules/Forms and statements.
2. Failure to claim final estimate made when after date on return, line 11.
1. Failure to allocate taxes paid when allocating income for "move in/move out."

23. Is there a tax credit for residents paying local taxes to another municipality of employment?

Effective January 1, 2005, Marysville eliminated the credit for tax paid to other cities. Therefore, residents working in another municipality must pay income taxes to their employment city and are no longer allowed a credit for the taxes paid to their employment city.

24. I work in Marysville and my employer withheld City tax, but I live in Columbus...how can I get a refund?

In Ohio, you have an income tax obligation to both your employment city and your resident city. Your employer is required by law to withhold your work place city tax and if you have "fully withheld", you have no filing requirement with your work place city. Therefore, if your employer’s office location is in Marysville but you worked all or part of your time outside Marysville, you would be due a refund of all or part of your Marysville tax which you can claim by filing an individual refund form for days out of the city. In this situation, the wages you claimed as having earned outside of Marysville would be subject to the "other municipality's" tax. An employer’s certification is required with all requests for a refund of tax withheld on wages claimed as having been earned outside of Marysville.