Frequently Asked Questions

• All Sidney residents and partial-year residents ages 18 and over
• Retired residents if they have a rental, business or other income taxable to Sidney
• Every business entity that conducts business within the City of Sidney
• Every non-resident who engages in business or other activity within the City of Sidney, including, but not limited to the rental of real or personal property. Non-residents who are employed within the City of Sidney, but whose Sidney City income tax is not fully withheld by their employer, must also file a return.

Exemption

Retired or permanently disabled individuals who have no wages, rental, business or other income taxable to Sidney may obtain exemption from filing a Sidney tax return. To receive exemption, complete a one-time Exemption Form (with a copy of page 1 of your Federal Form 1040, if applicable) and submit to our office. 

Please note that if your status changes and you again become employed or earn Sidney taxable income, you will be required to file a Sidney tax return for any full/partial year in which such income is earned. There is no age limit, according to the Ohio Revised Code, for paying municipal taxes on otherwise taxable earned income.

While not all-inclusive, generally you must file and pay quarterly estimated tax payments if any of the following applies to you:

• You are a Sidney resident and earn compensation outside of Sidney that was not subject to taxation by another municipality or you earned compensation in a municipality with a municipal income tax rate of less than 1.75%
• You are a Sidney resident and are self-employed (filing a Schedule C on your Federal tax return) or receive a Form 1099
• You are a not a Sidney resident but had self-employment income earned in Sidney
• You have any similar type of situation where your income is not fully withheld upon (at 1.75%) and you would have a tax balance due to Sidney

  
  

• For individuals with tax years beginning after December 31, 2015, quarterly estimates are due on or before April 15, June 15, September 15, and January15.
• For businesses (those filing using their Federal ID number), quarterly estimates are due on or before April 15, June 15, September 15, and December 15. 
• Estimated payments for fiscal year businesses are due on the 15th day of the fourth, sixth, ninth and twelfth months after the beginning of their taxable year.

To avoid being assessed an underestimation penalty, you must pay in the lesser of:

• 90% of the current tax year’s tax liability (through withholdings, estimated payments, or prior year overpayments)
• 100% of the prior year’s tax liability (through withholdings, estimated payments, or prior year overpayments). 

Contact our office for more assistance in calculating this amount.

We will gladly help you prepare your return for you, and there is no charge for this service. Simply bring your tax records (e.g. Federal 1040, all W-2’s, 1099-Misc, and other Federal schedules) and this package to our office. We highly recommend having your return prepared by our staff prior to March 31. Waiting until after this date may result in long lines or extended waiting for our office staff to assist with the preparation of your return.

Being a student has no effect on your Sidney income tax liability. All those age 18 years or older are subject to Sidney income tax on their Sidney taxable income.

The first page of your Federal Form 1040 is required to be attached to be considered a “complete” return.

Yes, anyone having a rental property located in Sidney is required to file a return and include a copy of their Schedule E or applicable schedule of income and expenses for the rental. A return is required each year even though losses may have been incurred. Also, any Sidney residents having rental properties are required to file on those properties no matter where the properties are located.

Business/rental losses may not be used to offset salaries, wages, commissions or other compensation. If a taxpayer is engaged in two or more taxable business activities to be included in the same return, the net loss of one business activity (not reportable to another municipality) may be used to offset the profits of another for purposes of arriving at overall net profits or net operating loss. Net operating losses may be carried forward and utilized for up to five years.

Sidney levies its 1.50% income tax on “qualifying wages”. In terms of which box on your Form W-2 represents “qualifying wages” for Sidney income tax purposes, it is generally the larger of Box 5 or Box 18. If your W-2’s are marked “various” or “all cities” in the Local Tax Withheld Line, you should request an itemized breakdown by city from your employer(s). You must attach this to your return. If you have questions, please contact our office.

Yes, credit is allowed for taxes paid to another city. The allowable credit is 1.50% of the amount paid to the other city.

Individuals and calendar-year businesses are required to file by April 15th. Fiscal-year businesses are required to file on the 15th day of the fourth month following the end of their fiscal year.

• For tax years after December 31, 2023, the late filing penalty is $25 after the due date (or extended due date, if applicable).
• Failure to pay taxes when due will result in penalty and interest to be assessed from the original due date.