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1. I am a college student and live away from Tipp City while attending school. Do I have to file a return?

Yes. If you maintain Tipp City as your legal residence, you are required to file a return even though much of your time may be spent out of the city. Any income that you earn is taxable to Tipp City regardless of where earned.

2. I am retired. Do I have to pay tax?

Social Security income and pension income are not taxable at the local level; however, as a resident of Tipp City, you are still required to file an annual return. If you are retired but receive other types of income such as part-time wages or rental income, you are required to file a return and pay the tax on that income. In some circumstances retired residents can become exempt from filing annual returns. Please contact the tax office to see if you meet the eligibility requirements.

3. I am under the age of 18, but am working. Do I have to file a return?

Tipp City residents become taxable at the age of 16. However, if you are age 16 or 17 and are fully withheld, you are not required to file a return. If your taxes are not fully withheld, you are required to file and pay the tax due.

4. I have only lived in Tipp City for a few months. What do I have to do?

You are required to file a Tipp City return for any portion of the year that you were a resident. Taxable income will be based on the income that you earned while a resident only (unless the income was earned within the City of Tipp City, in which case it is fully taxable). You must attach documentation of your part-year income such as a pay stub closest to the date that you moved in or out.

5. I live in Tipp City and work in Dayton. Do I get a refund?

No. If you work in any city with a tax rate higher than Tipp City, you receive a credit for tax paid to that city, but the credit will not exceed the Tipp City tax rate. Your taxes are first paid to the city that you work in. Your residence city does not receive any of those taxes; therefore, cannot refund it. If you work in a city whose tax rate is lower than Tipp City, you receive a credit for tax paid to that city and you will owe Tipp City the difference.

6. I live in Tipp City, but my employer does not withhold city tax. Can I pay all of my Tipp City tax when I file my return?

No. The Tipp City Ordinance requires you to have at least 90% of your Tipp City tax paid in by December 15th of the current year. This can be paid through withholdings and/or quarterly estimated payments. If you do not have at least 90% of your current year’s tax (or an amount equal to 100% of your prior year’s tax) paid by December 15th, you will be charged an underpayment of estimated tax penalty.

7. What documents do I have to attach to my return?

Documentation is required to support all income, credits and adjustments shown on your city return. The specific forms needed will vary depending on each taxpayer’s situation. Examples of necessary forms, if applicable: 

• W-2s (showing Federal, Medicare and local wage amounts, and amount of city tax withheld for all cities)
• 1099s
• Page 1 of Fed Form 1040
• Fed Schedule C, E, F, and A
• Form 2106 (if applicable)
• Page 1 and 2 of Fed Form 4797
• Fed Form 1065, 1120 or 1120-S
• Supporting schedules
• Documentation to support part-year residency

8. What is the Tipp City tax rate?

The current tax rate is 1.5%.

For tax years 1981 to 2002 the tax rate was 1%. From 2003 through 6/30/11, the tax rate was 1.25%.

9. When is my Tipp City tax return due?

The due date for calendar year taxpayers is April 15th. The due date for fiscal year taxpayers is 3 ½ months after fiscal year end.

10. Who is required to file a Tipp City tax return?

All Tipp City residents 18 years of age or older are required to file returns annually. Non-residents are required to file only when they earn income within the City of Tipp City which is not fully withheld upon, or have a business or rental property in the city. Every business located in or performing services in the city is required to file annual returns. All returns are required regardless of the amount of income received or losses incurred.