Some cities bundle their income taxes with state tax returns, some require entirely separate forms, and some don’t charge an income tax at all.
Everyone knows they have to file federal and – in most cases – state taxes when April rolls around. But what about city income taxes? Do you have to file those too?
For the most part, local taxes are on the same schedule as federal and state taxes, which means they all share the same mid-April deadline. Thus, the best time to take care of them is right after you complete your federal and state returns, when you’re already in a state of flow and all the numbers are fresh in your head.
First, figure out which cities you need to file taxes in. The vast majority of people do not owe local income taxes, but you should check the city you live in and then all the cities in which you earn money. In some cases, city income taxes will be withheld from your pay during the year.
Here are some major cities that levy an income tax:
- New York City taxes every income-earning individual who resides in the city. The tax is collected by the New York State Department of Taxation.
- In contrast Los Angeles and Chicago have no income tax (though the Windy City’s budget woes may soon put one on the table).
- Baltimore, and all 23 Maryland counties, levy a local income tax that is collected on the state tax return.
- Most cities in Ohio charge an income tax and large cities like Columbus and Cleveland actually administer local income taxes for much of the surrounding area. A separate form, not your state tax return, is required to collect this tax.
- Kansas City, MO charges a 1% earnings tax paid by all residents and nonresidents who work in the city. You can file online directly with the city.
As you can see, city tax situations vary widely. Some cities administer their taxes through the state tax return, some require separate forms you have to find and fill out, and still others allow you to pay your city taxes easily online.
Unfortunately, many online tax filing services, including PriorTax, do not allow you to file city taxes individually. With PriorTax, for example, you can only file city taxes that are collected through the state tax return. New York City and Baltimore residents, for example, would be able to file their city taxes.
If you still need to file your 2010 taxes we’ll be happy to help you. But when it comes to city taxes that require a separate form, you’re on your own.
Photo via ZeroOne on Flickr.
Tags: local taxes