The purpose of the income tax is to provide funds for the general municipal operations, maintenance, new equipment, extension and enlargement of municipal services and facilities and capital improvements of the city of Canfield.
The following are some frequently asked questions and answers:
What is the income tax rate?
Who pays the income tax?
Residents 18 years and older, businesses of Canfield and employees working within the city limits must pay income tax.
How do I find out if I live within the City limits?
The City of Canfield and Canfield Township have the same zip code. To determine if you reside, if a business is located in or if an employee for whom you are withholding city income tax resides within city limits check: “Streets in City of Canfield “ on this website or visit the Mahoning County auditor website www.mahoningcountyoh.gov or the Finder website www.tax.oh.gov or call the Income Tax Department 330-533-1101.
How do I set up an account?
Prior to sending any type of payment, an account must be established. You will find questionnaires for individuals, businesses, employer withholding, contractors, subcontractors, landlords on this website. Complete and return the applicable forms to the Income Tax Department.
Is it mandatory to file?
Yes, all residents (living in the city full year, partial year or multi residences) 18 and older, and businesses must file.
How do I submit the Income Tax Form?
Returns are to be submitted via mail or dropped off at the income tax department.
When do I file?
Tax returns are to be filed by April 15 for residents and business reporting on a calendar year; if on a fiscal year the return is due before the 15th day of the fourth month following the end of such fiscal period.
Do I have to pay estimated taxes?
Every person, except an individual employee whose only taxable income is from employment shall declare an estimated tax. Such declaration is filed with their income tax return.
Is there a penalty if I don’t pay the estimated tax?
You are subject to penalty and interest charges for underpayment of the annual tax due if you fail to pay an amount equal to or great than the prior year tax or 90% of the tax owed for current year by January 31st of the following year.
Can I have an extension in which to file?
Only the federal extension (Form 4868 for Individuals and Form 7004 for Businesses) is accepted. Note: if money is due, it is payable at the time of the filing of the extension.
When does the extension have to be filed?
The extension is due by April 15 for individuals and businesses that report on a calendar year; and for fiscal reporting business the extension is due the 15th date of the fourth month following the end of such fiscal period.
What is taxable income?
Taxable income includes salaries, wages, sub-pay, commissions, rent, and other earned income for work done or serviced, performed or rendered from all sources of income, earned inside and outside of the city.
Is a credit allowed for income tax paid to other cities?
Residents of the City of Canfield who pay another municipal income tax may take
credit of ½ of 1% of the wage on which the other municipal tax is paid. Do not take credit for taxes paid to the other municipality if you are applying for a full or partial refund from that municipality. You will only get credit for the tax you paid, not the tax which was refunded to you.
Are lottery winnings taxable?
All winnings earned or derived from gaming, wagering, lotteries or games of chance are taxable.
What forms need to submit when filing an income tax return?
All tax returns mailed to the income tax department must include all applicable schedules, Federal Form 1040 or 1040A or 1040Ez for individuals or for businesses Form 1120 or 1120A or 1120S or Form 1065.
When are tax forms incomplete?
If any schedules or forms are not submitted, the return is considered incomplete. Failure to provide documentation can result in a penalty up to $1,000 and a misdemeanor charge.