Response to Coronavirus (COVID-19)
(Updated March 22, 2020)
Please drop off income tax documents in the mail slot located in the front door of the City Hall building. Documents can also be sent via mail, fax, or our secure email portal.
In response to COVID-19, the Federal, State, and Local filing and payment deadlines are extended from April 15 to July 15, 2020.
Computing your Montgomery Tax Liability
Box 5 reports wages subject to Medicare taxes. Wages reported in box 5 as are reported on line 1 of the City return.
Box 18 If you are subject to local or city income taxes, those will be reported in box 18.
Box 19 If you have wages in box 18 subject to local or city income taxes, any amount of withholding will be reported in box 19.
In calculating credit for tax paid to other municipalities, the credit may not exceed 1% of those wages actually taxed. Tax withheld at a rate higher than 1% must be reduced to the percent allowable (e.g., tax paid to Cincinnati divided by 2.1 equals the allowable Montgomery credit).
Please note: No credit is given for tax paid to counties or school district taxes.
Annual Interest Rates
The interest rates to be applied to all unpaid income and withholding tax balances. These rates are being published in accordance with Ohio Revised Code 718.27(F) which states that “By the thirty-first day of October of each year the municipal corporation shall publish the rate described in division (A) of this section applicable to the next succeeding calendar year”.
|Calendar Year||Annual Rate||Monthly Rate|
|2015 & Prior||12.00%|
Quarterly payments are required if estimated liability is $200 or greater. (Annual wage of $20,000 or greater)
Note: New Ohio State law (HB5) has mandated that estimated payments reach a minimum of 90% of the declaration by December 15th, which equates to 22.5% due per quarter. Payments of 22.5% may be made; however, the City statements will reflect 25% of the yearly declaration per quarter.
- 1st Quarter – Due with filing, by April 15
- 2nd Quarter – Due by June 15
- 3rd Quarter – Due by September 15
- 4th Quarter – Due by January 15
Any balance will be due with the yearly filing
The City of Montgomery has a 1% Income Tax which applies to all who live, work or operate a business in Montgomery regardless of age or income level.
Individual returns due on or before April 15, or the Federal equivalent.
Business returns due on or before April 15 (or Federal equivalent); or the 15th day of the 4th month following the end of the fiscal year.
Withholding Reconciliations due on or before February 28.
Documents to be included with your Individual return: W-2 forms, showing Medicare wages (Box 5) and local tax paid, if any (Boxes 18-20). Page 1 and 2 of Federal 1040 form and Federal Schedule 1. If applicable, include the following: Schedules C, E, F; Form 4797, 1099-Misc, W2-G.
An extension may be requested by any business or individual unable to complete their tax return by the deadline. Beginning with tax year 2016, obtaining a federal extension will automatically extend your Montgomery due date to the approved federal date. However, the federal government does not share information with the City of Montgomery, so it is recommended that a Extension Request Formbe completed and submitted to the City. If you do not have a federal extension you must send a written extension request to the Montgomery tax office by the due date of the return. Only those extension requests received in duplicate with a self-addressed, postpaid envelope will have a copy returned.
Please mail to:
City of Montgomery Tax Office
10101 Montgomery Road
Montgomery, OH 45242
Interest and Penalties
FOR TAX YEARS BEGINNING JANUARY 1, 2016
Interest shall be imposed at the rate calculated based on the federal short-term rate, rounded to the nearest whole number percent, plus five percent (5%) per annum on all unpaid income tax, unpaid estimated income tax and unpaid withholding tax. Interest shall be charged per month, or fraction of a month.
With respect to unpaid income tax and unpaid estimated income tax, a penalty equal to fifteen percent (15%) of the amount not timely paid shall be imposed.
With respect to any unpaid withholding tax, a penalty equal to fifty percent (50%) of the amount not timely paid shall be imposed.
The Tax Office shall impose a monthly penalty of twenty-five dollars ($25.00) for failure to timely file a return, regardless of the liability. The penalty shall be charged for each month, or fraction thereof, not to exceed a total of one hundred fifty dollars ($150.00).
Income Tax Ordinance
Tax Forms and Instructions
City of Montgomery Individual Income Tax Return
- 2019 Individual Tax Form (Fillable PDF) Pages 1 And 2
- 2019 Individual Tax Form Instructions Pages 3 And 4
- 2019 IR Line By Line Instructions
- 2018 Individual Tax Return (Fillable PDF)
- 2018 Individual Tax Form Instructions
- 2017 individual tax return (fillable PDF)
- Individual Tax Return – Line by Line Instructions (Effective Tax Year 2016)
- Individual Tax Return – Line by Line Instructions (2015 and prior)
- 2016 Individual Tax Return (Fillable PDF)
City of Montgomery Business Income Tax Return
- 2019 Business Tax Form (Fillable PDF)
- 2019 Business Form Instructions
- 2018 Business Tax Form
- 2018 Business Return Instructions
- 2017 Business Tax Return
- 2016 Business Tax Return
- Quarterly Tax Estimate (Fillable PDF)
- W-1 Form (Fillable PDF)
- City of Montgomery Annual Withholding Reconciliation (W-3) (Fillable PDF)
- Landlord Information
- Landlord Questionnaire (Fillable PDF)
- Extension Request Form
- Federal Tax Forms – This is a link to the Federal site where all available Federal tax forms can be found.
- State of Ohio Tax Forms – This is a link to the State of Ohio site where all available State of Ohio tax forms can be found.
- City Tax Listings – A listing of all Ohio Municipalities with a City Income Tax and tax rates, maintained by the City of Columbus.
- Greater Cincinnati Street Guide – Access street listings and corresponding taxing municipality, maintained by the City of Cincinnati and the Southwestern Ohio Tax Administrators Association.
Frequently Asked Questions
What is the tax rate for the City of Montgomery?
The City of Montgomery has a 1% Income Tax which applies to all who live, work or operate a business in Montgomery.
What is the filing deadline and how may I receive an extension?
An extension may be requested by any business or individual unable to complete their tax return by the deadline. Forms are available online. Beginning with tax year 2016, obtaining a federal extension will automatically extend your Montgomery due date to the approved federal date. However, the federal government does not share information with the City of Montgomery, so it is recommended that a Montgomery extension form be completed and submitted to the City. If you do not have a federal extension you must send a written extension request to the Montgomery tax office by the due date of the return. Only those extension requests received in duplicate with a self-addressed, postpaid envelope will have a copy returned.
I moved to Montgomery during the year, do I need to file for the entire year?
Any partial year resident or business needs to file a return only for the period of time that they actually resides and/or did business in Montgomery. When prorating your income, you must also prorate any other city credit. A partial year resident and/or business should enclose an explanation of how their liabilities were calculated.
My partner and I started a small business in Montgomery this year and have only a loss to report. Do we need to file a return?
Yes, even if the business has incurred a loss, a return must be filed. Additionally, the loss may be carried forward up to five (5) years to offset any future gains.
Does the City of Montgomery give credit for taxes paid to other municipalities?
The City of Montgomery grants credit up to 1% of taxed wages for taxes paid to other municipalities. A spouse who pays in excess of 1% cannot offset their spouse’s untaxed income.
My minor child had a summer job. Do they need to file?
All residents, regardless of age or income level, must file a return if they have earned income to report.
What forms are required to accompany my Montgomery Tax Return?
For a resident return to be complete, please include the following: W-2 forms, showing qualifying wages and taxes paid to other cities; a copy of the front page of the Federal 1040 Form, including all federal schedules that pertain to lines 12,17,18 and 21, if any. If you have partnership income shown on Federal Schedule E, copies of the Federal K-1 Forms must also be included. Additionally, please include a copy of tax returns filed with other municipalities, if applicable.
For a business return to be complete: a copy of the Federal Return with all pertinent federal schedules must be attached. For example, a sole proprietor would need to include a Federal Schedule C; a landlord should submit a copy of their Federal Schedule E, etc. Corporations should also ensure that their Schedule Y allocation tables are completed.
What income is NOT taxable to Montgomery?
Includes, but is not limited to: Interest, dividends, capital gains, government unemployment benefits, workers compensation payments, alimony, child support, active duty military pay, social security benefits and retirement income.
Additional information can be found in the ‘Taxable Income’ tab.
My company incorrectly withheld payments to the City of Montgomery. I have requested a refund. When can I expect a check?
The Tax Office has 90 days from the time that a completed return is received to issue a refund. The Tax Commissioner will need the following information: a request for the refund including a letter from your employer confirming that a withholding error has occurred, a completed return and all applicable W-2 forms.
My financial situation has worsened and I cannot pay my Montgomery tax liability. Should I file?
YES, file your Montgomery return whether or not you can pay the tax owed. A satisfactory payment schedule can be worked out with the Tax Commissioner.
I am a resident and have started a part-time consulting business out of my home and have a loss for this tax year. Can I offset my wage liability with the loss?
No, business losses taxable to Montgomery cannot offset wages. Losses may be carried forward for up to five (5) years to offset any future gains on business activity taxable to Montgomery.
Who must file?
Not sure that you are located in the City of Montgomery? Access our Street Address Listing
The City of Montgomery has a 1% income tax levied on all businesses, individual proprietorships, partnerships, landlords and corporations doing business within the City of Montgomery. All businesses located within Montgomery city limits must file an annual return whether or not tax is due. Fiscal taxpayers’ annual returns are due four months after the close of their taxable year. A copy of the federal return and all applicable supporting forms and statements must be included. Business losses may be carried forward for up to five (5) years. An IRS extension will automatically extend your Montgomery return provided a copy of the form is included with your filing. If a Federal extension has not been secured, a request must be made in writing and received in the Tax Office on or before the due date of the return. See ‘Tax Forms and Instructions’ for a copy of the Montgomery extension form. A minimum late filing penalty of $25.00 will be charged on returns received past the due date.
All residents are subject to the tax, including those who rent their residence. Montgomery has mandatory filing, which requires all residents to file an annual return whether or not tax is due. Residents employed in another city where the tax rate is 1% or higher, or whose wages are totally taxed by that city will receive credit, not to exceed 1%, for the amount of tax paid to that municipality. If a resident is only partially taxable to the municipality where employed, that portion of income which is not taxed becomes taxable to the City of Montgomery at a rate of 1%. Interest, dividend, pension and retirement income is not taxable.
Business losses may not be used to offset W-2 income. IRA and KEOUGH deductions are not allowed.
An annual return for the previous year is due on or before April 15th or the Federal equivalent. Copies of all W-2 forms showing gross wages and any other city withholding taxes, the front page of the Federal Form 1040, and applicable schedules for income shown on Lines 12, 17, 18 and 21 must accompany the return. A declaration of estimated tax for the current year is also due on or before April 15. Quarterly statements will be billed. A Federal extension will automatically grant an extension on your Montgomery filing until October 15; or the 15th day of the 10th month following the end of the fiscal year. If you have not filed for a Federal extension, you may still request an extension by completing and returning a Montgomery extension form. The form can be found on our website under ‘Tax Forms and Instructions’. Extension requests must be made in writing, and received in the Montgomery Tax Office before the original due date of the return. Extension will not be granted for payment of tax due. Payment of any estimated balance due must accompany a request for extension to file. Only those extension requests received in duplicate with a self-addressed, postpaid envelope will have a copy returned.
Employers withhold for non-residents (and residents) working within the City’s limits at a rate of 1% of their gross wages and files a City of Montgomery Form W-3 (Annual Reconciliation) at the end of the calendar year. A nonresident who is properly withheld upon by their employer does not need to file a return with the City of Montgomery. Nonresidents who are not withheld upon by their employer and/or are self-employed (1099 Misc., Federal Schedule C, etc.) are required to file a return for the income earned within Montgomery.
All Businesses maintaining a Montgomery location or doing business in Montgomery
The City of Montgomery has a 1% income tax levied on all businesses, individual proprietorships, partnerships, landlords and corporations doing business within the City of Montgomery. All businesses must file an annual return whether or not tax is due. Fiscal taxpayers’ annual returns are due four months after the close of their taxable year. A copy of the federal return and all applicable supporting forms and statements must be included. Business losses may be carried forward for up to five (5) years. Extensions may be granted for filing, provided an IRS extension has been secured. Extension requests must be made in writing and received in the Tax Office on or before the due date of the return. A minimum late filing penalty of $25.00 will be assessed on returns received past the due date.
Employers within the City of Montgomery are required to withhold income tax from all compensation paid to their employees, which includes employee contributions to deferred compensation plans and other qualified and non-qualified plans retirement plans, group life insurance benefits, stock option income, etc. Taxes withheld must be remitted quarterly, unless the tax withheld exceeds $200.00 per month (or $600.00 per quarter) in which case remittance must be made monthly. Monthly payments are due on or before the 15th day of the month for the preceding month. Quarterly payments are due on April 30, July 31, October 31 and January 31. An annual reconciliation is required for the preceding year and is due on or before February 28th with copies of the employees’ W-2 forms and 1099’s.
Includes, but is not limited to:
- Wages, salaries, commission, fees and other compensation including tips, bonuses or gifts – use qualifying wages as defined in section 3121(a) of the Internal Revenue Code
- Gambling, prizes and lottery winnings (Losses are not allowed unless taxpayer is established as a ‘Professional Gambler’ by the IRS and file on a Federal Schedule C)
- Business conducted by trust or estate
- Trusts not made pursuant to employee’s retirement
- Schedule F net profit
- Sick pay subject to Medicare tax
- Vacation pay
- Income from wage continuation plans during periods of disability or sickness are taxable when paid
- Supplemental unemployment compensation benefits described in Section 3402 (o)(2) of the Internal Revenue Code
- Strike pay; grievance pay
- Incentive payments, no matter how described, including, but not limited to payments to induce early retirement
- Severance pay
- Car allowance or personal use of employer-provided vehicle
- Group term life insurance to the extent taxable by the federal government
- Sick pay or disability pay whether paid by the employer to the employee or through a third party
- Contributions by an employee or on behalf of an employee from gross wages, into an employee or third party trust or pension plan as permitted by any provision of the Internal Revenue Code which may be excludable from gross wages for federal income tax purposes (401K plans and similar plans)
- The ordinary income portion of a stock option or employee stock purchase plan to the extent that it is shown on the W-2 as ordinary income and is includable on the taxpayer’s federal income tax return
- Nonqualified Deferred Compensation Plans or programs described in Section 3121(v)(2)(C) of the Internal Revenue Code
- Ordinary gains as reported on Federal Form 4797
- Net profits from profession and/or business operations, rental property, partnerships, enterprise or other business activity
- Punitive damages received from a legal settlement
Includes, but is not limited to:
- Military pay and allowances received as a member of the U.S. Armed Forces (active duty)
- Alimony / Child Support
- Capital gains, unless taxed as ordinary income
- Social Security benefits
- Workers’ Compensation
- State unemployment benefits
- Insurance benefits
- Income of religious, fraternal, charitable, scientific, literary or educational institutions to the extent that such income is derived from tax-exempt real estate, tax-exempt tangible or intangible property or tax-exempt activities; housing allowance
- Welfare payments
- Compensation for damage to property by way of insurance or otherwise.
- Income from the sale of, or lease of, mineral rights except in cases where taxpayer conducts the activities by which the minerals are extracted from the land
- Pension income from qualified retirement plans as defined by Internal Revenue Code
- Annuities – at time of distribution
- Housing allowances for the clergy to the extent that the allowance is used to provide a home
- Cafeteria Plans – (Section 125’s)
- Cancellation of debt
- Moving expenses included in gross earnings shall be an allowance as a deductible expense. No deduction will be allowed if the taxpayer does not provide the federal Form 3903, or substitute IRS form Employee Moving Expenses Information for his moving deductions.
- Income from election day poll work (under $1,000)
- Transit authority compensation paid to an employee including regional transit authority, or regional transit commission
- Income of a public utility when that public utility is subject to the tax levied under Section 5727.24 or 5727.30 of the Ohio Revised Code
- Dues, contributions and similar payments received by charitable, religious, educational organizations, or labor unions, trade or professional associations, lodges and similar organizations
- Income from a fellowship is exempt only when given for attendance as a student at a recognized college or university and exempt for federal income tax purposes.