Definitions

Taxable Earned income - includes all wages, salaries, commissions, net income from a business, or any other compensation for services or work performed including non-monetary compensation.

Non-Taxable Income - includes all non-employee income such as: Social Security income, retirement income, pensions, interest received from savings or certificates of deposit. welfare, A.D.C., unemployment compensation, and military income. Residents who receive a tax return from the Aberdeen Income Tax Bureau and their only source of income is from the sources listed above, must notify the Tax Bureau in writing of this situation.

Minimum Earned Income - Every resident of Aberdeen with an earned income of $1,000 or more during the year is required to file an income tax return even if no tax is due. If the amount of tax due is less than $5.00, no payment will he required, but a tax return must be filed. If the amount of refund is less than $5.00, no refund will be issued.

Tax Credit - The Aberdeen income tax ordinance provides a tax credit for local income tax that was deducted from your earnings and paid to another city or village (not state or federal taxes paid). The maximum amount of tax credit allowed is 1% (.01) of gross earnings. For example. if the gross earnings (the larger amount from Box 1, 9. or 18) reported on a W-2 was $5000, the maximum tax credit for that income would be the lesser amount of the actual tax withheld and paid to another city or village (if any) or $50 ($5000 times .01 = $50).

Excess tax credit - Any tax withheld for another city or village in excess of 1% per W-2 cannot be used to offset or reduce the tax liability of other income reported on a different W—2 form. For example. if one of John Smith’s W—2's indicated an income of $10,000 with a $130 deduction to another city, and another W—2 indicated a $4,000 income with no deduction for another city or village, the maximum tax credit would be limited to 1% of the $10,000 which is $100. The excess tax withheld from the one W- 2 of $30 cannot he used to offset or reduce the tax liability of the $4,000 reported on the other W-2 form. If both the husband and the wife work, any excess tax paid by one spouse to another city or village cannot be used to offset or reduce the tax liability of the other spouse.

Declaration of Estimated Tax- an estimate the total income (before any deductions) expected to be received in a year. (Use your last year's earnings rounded to the nearest $100.) Multiply the estimated income by 1% (.01). Determine any amounts expected to be deducted by your employer for Aberdeen or for another city or village. Subtract the expected tax credits (if any) from your estimated Aberdeen tax liability to determine the balance of your estimated tax due. You may pay the full amount of this estimate when you file your return, otherwise, you must pay at least one—fourth (1/4) with the balance being paid in quarterly installments. The Income Tax Bureau will send notices when each quarterly installment becomes due.  See related page "Estimated Tax".

Filing Deadline - the last date for submitting your Aberdeen Income Tax return is April 15 of each year.

Itinerant Employment (12 day Occasional Entry Rule)- any non-resident individual who receives compensation for services performed inside the Village of Aberdeen on twelve (12) or fewer days during the calendar year is not subject to the Aberdeen Income Tax.

Tax Extension - You may request an extension for filing your tax return if you are unable to meet the deadline. A valid extension request extends the due date for filing a return six (6) months from the original due date for the return.

Individual Tax Forms

IR - Individual Return - annual individual income tax return due by April 15.

ET - Estimated income Tax Declaration - an estimate of tax liability to Aberdeen

Q1 - Quarterly Installment of Estimated Tax - Statement of estimated tax due each quarter (April 30, July 31, October 31, and January 31) based on the previous year's tax return.

                     
                   Tax Bureau Services

Tax Preparation - The Income Tax Bureau will help residents prepare their tax return free of charge.

Payment Plan - Individuals who are not able to make the full payment of income taxes they owe to the Village of Aberdeen can arrange to make regular monthly payments to the Income Tax Bureau. Details and specific arrangements can be made by contacting the Income Tax Bureau.

E-Z File! - If the only source of income is from wages which were reported on W-2 forms, residents can use the E-Z File! method. Simply attach a copy of every W-2 form received from your employers, sign the tax return at the bottom, enclose a self—addressed, stamped business size envelope and the Tax Bureau will complete their return and mail you a copy. If you are entitled to a refund, the Tax Bureau will automatically send it. If you owe any taxes, you will receive a notice from the Tax Bureau. There is no charge for this service if you pay the full amount of tax due (if any) within fifteen (15) days and include a self-addressed, stamped business size envelope.

If you have any addition questions regarding the Aberdeen Income lax, please contact the Tax Commissoner.

Income Tax Bureau                                      Phone: (800) 779-3165
Village of Aberdeen                                           Fax: (937) 444-9241
P.O. Box 579                              E-mail: aberdeentax@netscape.net
Mt. Orab, Ohio 45154          Website: www.aberdeenincometax.info