Does the City of Athens assess an income tax?

Yes.

What is the tax rate?

1.75%, effective January 1, 2011 thru December 31, 2011.
1.65%, effective January 1, 2012.
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Do I have to pay Athens City Income Tax?

Yes. The law requires that if you are 18 years of age or older, and you live or work inside the Athens City limits, you may be subject to the Athens City income tax. Work consists of any business activity performed as an employee, self-employed contractor or subcontractor, and/or an owner of rental property.

Are all sources of income taxable?

No. Athens City income tax is not assessed on the following sources of income: qualified retirement plans - welfare benefits - pensions -    parsonage rental allowance paid or furnished to a clergy member as part of compensation - interest - dividends - insurance proceeds - unemployment benefits - social security benefits - capital gains - military pay & allowance - alimony - patents - fellowship & scholarship grants, if exempt for federal income tax - income from individuals under 18 years old - compensation for damages for personal injuries & property - income derived from tax-exempt activities - shareholders distributive share of a Subchapter S corporation; if the income is attributable to its business activities outside Ohio - compensation (up to $1000.00) paid to a precinct election official - compensation paid to a transit authority employee, unless the transit operates a regular route in or thru Athens, or the employee is an Athens resident, or the transit is located in Athens. Compensation paid to non-resident individuals, for services performed inside the City of Athens, on twelve or fewer days in a calendar year, is not taxable. This 12-day occasional entry provision does not apply to a professional entertainer, a professional athlete, a promoter of, or an employee of, a professional entertainer or professional athlete; or to an individual who is an employee and his/her employer is located in another municipality, and the individual is not liable for tax to the other municipality.

If I live outside the Athens City limits, am I subject to the Athens City income tax?

Yes. If you work within the Athens City limits. Work consists of any business activity performed as an employee, self-employed contractor or subcontractor, and/or an owner of rental property. Compensation paid to non-resident sole individuals for services performed inside the City of Athens, on twelve or fewer days in a calendar year, is not taxable. This 12-day occasional entry provision does not apply to a professional entertainer, a professional athlete, a promoter of or an employee of, a professional entertainer or professional athlete, or to an individual who is an employee and his/her employer is located in another municipality, and the individual is not liable for tax to the other municipality.

If I live in Athens, but work in another city with an income tax, am I subject to the Athens City income tax?

Yes. The credit given to residents who remit tax to another city is 1.00% of compensation earned.

Do I need to file a return if my business activity reported a loss for the year?

Yes. You must file a return on all business activity if you live, work or
conduct business in Athens. Report self-employment activity and rental activity.

What deductions may I take?

There is no standard deduction. There are no exemptions. The tax is assessed at a flat rate. Taxpayers are permitted to deduct employee business expenses. Taxpayers are permitted to deduct for "one-half" of self-employment tax.  Business and rental losses deducted from W-2 wages are not permitted. However business and rental losses may be used to offset business and rental profits on the same return.

How does the Athens City Income Tax Return differ from the Federal Income Tax return?

Effective January 1, 2004, the Medicare Wage Box amount on form W-2 is the amount subject to Athens City income tax.

• The tax is assessed at a flat rate.
• There is no standard deduction.
• There are no exemptions.

What should I include with my return?

• Signed tax return
• All required forms and schedules.
• Social Security number or Federal Identification number.
• Make any name and/or address change on return.
• If this is the last time you are filing an Athens return, please indicate the reason.
• Check for balance of tax due and your 1st quarter declaration payment.
• Make checks payable to: City of Athens Income Tax Department

Extensions:

Extension requests must be submitted by the due date of the return.
An extension to file the return is not an extension to pay any tax due at a later date.
A copy of your federal extension is required.
Filing your federal extension does not automatically grant approval for filing your Athens City Income Tax Return on extension.
 
Due Dates

Fiscal year taxpayers must file an income tax return by the 15th day of the 4th month, following the fiscal year end. Calendar year taxpayers are required to file income tax returns by April 15.

Do I need to file an annual City of Athens income tax return?

You may need to file an annual return if you live, work, or conduct business activity inside the Athens City limits.

Yes, if your employer did not withhold Athens city income tax for you.

Yes, if you are self-employed and/or own rental property.


No, if your only source of income is one or all of the following:

1.   Qualified retirement plans

2.   Pensions

3.   Welfare benefits

4.   Alimony

5.   Interest

6.   Patents or copyrights

7.   Unemployment benefits
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8.   Dividends

9.   Social Security benefits

10. Capital gains

11. Insurance proceeds

12. Military pay & allowance

13. Fellowship & Scholarship grants, if exempt for federal income tax

14. Income from individuals under 18 years old

15. Personal injury and property damages

16. Tax exempt activity income

17. Shareholder's distributive share of a Sub-S corporation; if the income is attributable it its business activities outside Ohio

18. Income (up to $1,000) paid to a precinct election official

19. Income paid to a transit authority employee, unless the transit operates a regular route in or through Athens, or the employee is an Athens resident, or the transit is located in Athens

20. Parsonage rental allowance paid or furnished to a clergy member as part of compensation

21. Compensation paid to non-resident sole proprietors, for services performed inside the City of Athens, on twelve or fewer days in a calendar year.  This 12 day occasional entry provision does not apply to a professional entertainer, or professional athlete, a promoter of, or an employee of, a professional entertainer or professional athlete; or to an individual who is an employee and his/her employer is located in another municipality, and the individual is not liable for tax to the other municipality

22. If you work, but do not reside, within the City limits and your employer withholds City taxes for you. (Check boxes 18 and 19 on your W-2 to verify.)

 
The following is the Declaration/Estimated Payment schedule:
 

	2nd QTR	3rd QTR	4th QTR
B Account (0000-B)	June 15	Sept 15	Dec 15
R Account (0000-R)	July 31	Oct 30	Feb 1