Income Tax FAQ
Q: Who is required to file a Wadsworth tax return?
A: All residents of Wadsworth 18 years of age or older who had reportable income are required to file an income tax return, even if all the tax you owe was withheld. In addition, all nonresidents are required to file if they engaged in any business activity within the City and had no tax withheld from their earnings, or they have rental property located in Wadsworth. Each business located or performing services within the City is required to file. There is no threshold or benchmark for income or loss; returns are required without regard to the amount.
Q: How do I know whether I live and/or work in the City of Wadsworth?
A: You cannot always rely on your 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 the address. Similarly, you cannot rely on your school district, since those do not always follow city boundaries.
If you are a registered voter, it should be easy to determine your city of residence- if you voted for a mayoral candidate of a city, you live in that city.
If you moved recently or are not registered to vote, you may call the City Income Tax Officer at 330.335.2745 to verify your city of residence and whether your Wadsworth employer is located within the City.
Employers may also call the Income Tax Officer to verify whether their employees are working within Wadsworth city limits.
Q: If I work outside of Wadsworth and my employer withholds income tax for the city where I work, do I still have to pay tax to Wadsworth?
A: Yes, you have to pay a residence tax on income taxed by another city. You receive credit for up to 1% of the tax that you pay to the city where you work, so if you are paying at least 1% to your employment city, your Wadsworth residence tax is .4%. (As o f January 1, 2012. the Wadsworth City income tax rate changed to 1.4%. effective for income earned/paid after January 31, 2012; f or tax years prior to 2012, the Wadsworth City income tax rate is 1.3%.)
Q: If I am a resident and work in Wadsworth, why do I still have to file a tax form?
A: The City has a mandatory filing requirement, so every resident over the age of 18 must file an annual return, even if your employer withholds all of your taxes.
Q: My spouse and I file separately for Federal and State taxes. Do we have to file the same way for Wadsworth taxes?
A: No, and in fact, if you are still married, s ince there are no advantages or disadvantages one way or the other, we would prefer you file a joint return. However, if you need to file separately, you may do so, and you should continue to do so for each year thereafter.
Q: I am under 18 years old and work part-time. Do I need to file a tax return?
A: No one under age 18 is required to file a return. However, if your employer withheld Wadsworth taxes, you can and should request a refund. You will need to provide your W-2 form and a copy of your driver's license, birth certificate or ID card for verification of age.
Q: If I'm retired, do I have to file a tax return?
A: Retirees are only required to file and pay tax if they have earned income of any amount (such as wages for part-time employment, lottery/gambling winnings, rental income/loss, or if they engage in any business activity.) No one pays tax on interest or dividend income, and retirees are not taxed on pensions or Social Security. A retiree (or anyone) who has no taxable income must file an exemption certificate.
Q : L ast year I paid my taxes in full when I filed my return, and then I got a bill from The Central Collection Agency in Cleveland for penalty and interest. Why did I get this bill?
A: There could be many reasons why you received this bill. The best thing to do is contact our City Income Tax Officer who can explain to you why you received it. You can reach the Officer at 330.335.2745 or via email at CNelson@WadsworthCity.org (if you are using a web-based email program, you may need to copy and paste this email address into a new message.) The Central Collection Agency ("CCA") is the agency the City of Wadsworth uses to administer our income tax program.
Q: Why does the City use CCA for the administration of our taxes?
A: CCA has available many resources for compliance to which The City cannot gain access. Additionally, we evaluate the cost of doing all of the work associated with administration of income taxes versus the cost of outsourcing, and it was decided several years ago that contracting with CCA was the most cost-effective way to go. We review this
decision on a regular basis. We work closely with CCA, and if you ever have any issues or concerns with them, please contact our Income Tax Officer for assistance.
Q: When do my taxes have to be paid?
A: The City of Wadsworth income tax ordinance states that at least 90% of your current year tax liability or 100% of last year's tax liability must be paid by January 31 to avoid potential penalty and interest charges on underpaid taxes. Since many people do not get their W-2 until the very end of January, we can estimate your taxes based on your last pay stub, and you can pay the estimated amount by January 31. After you get your W-2, we calculate the actual tax liability for the year and deduct the estimate paid from the amount due. We will credit any overpaid taxes to next year's liability or issue a refund under certain circumstances.
Q: I owe taxes and am unable to pay. Should I still file my return?
A: Yes, you absolutely should file your return by the due date whether or not you are able to pay the entire amount of tax that you owe. You will receive a bill for the balance owed along with late payment penalty and interest charges. You may contact CCA or The City of Wadsworth Income Tax Officer to make arrangements for payment of the billed charges.
Q: How can I receive bills for my taxes so I can pay them during the year instead of having to come up with all the money at once?
A: You can receive quarterly bills for your estimated taxes by completing the estimated tax section(s) on the annual tax form (Section A-1 and/or B-1) or by contacting the City's Income Tax Officer who can assist you with getting this set up.
Q: When is the annual City tax return due?
A: The filing deadline is the same as your Federal and State returns, usually April 15. However, if you need our assistance with your taxes, waiting to file until the last couple of weeks or the last day may result in a long wait. You can come in to have your taxes prepared as soon as you have all of your tax information, and we will give you your original return to file. You can then mail the completed return to CCA or drop it off in the Finance Office by the due date.
Q: What if I cannot get my taxes done by April 15?
A: A Federal extension also acts as an extension of time to file your City tax return. When you file your Wadsworth tax return, be sure to attach a copy of your Federal extension to avoid a penalty for late filing. Remember: an extension of time to file does not extend the time to pay your tax. Also, paying only 90% of this year's estimated tax may not be sufficient to avoid an underpayment penalty for late payment of taxes due.
Q: I do not want to be billed for or pay quarterly estimated taxes. How can I avoid a penalty.
A: There are two ways: (1) File your tax return by January 31 and pay the total tax due, or (2) Pay by January 31 the amount of your total tax liability for the prior year, and then timely file your tax return. (Your total tax liability for the prior year is not necessarily the balance you owed when you filed your tax return.) If you do one of these two things, you will not be subject to underpayment penalty or interest.
Q: What are the t op ten mistakes made when completing a city income tax return?
- Use the largest wage figure shown on the W-2 Attach W-2 forms showing how much local tax was withheld Attach required Federal schedules (including extensions) Deduct business or rental loss carryovers from prior years
- Deduct unreimbursed employee business expenses if applicable
If reading this list raises a question for you, please call the Income Tax Officer at 330.335.2745.
Q: H ow much income tax does the City collect and how is the money used?
A: O n a cash basis, the City of Wadsworth collected $8,240,943 in income taxes in 2013. Click here for more information.
Q: H ow can I find out who owns a property?
A: For questions regarding who owns a parcel of real estate, the office to contact is the Medina County Auditor. The County Auditor can be reached at 330.336.6657.
If you have a question, comment or suggestion about this page, please send an email to Catherine C. Fix, CPA at City Auditor@WadsworthCity.org (if you are using a web-based email program, you may need to copy and paste this email address into a new message.)