Tax Overview
Who Must File:
- All Xenia residents and partial year residents ages 18 and over.
- Xenia residents 16 and 17 years of age only if their tax is not completely withheld for Xenia at the rate of 2.25%.
- Retired residents age 65 and over if they have rental, business income or earned income.
- Every business entity that conducts business within or for the City of Xenia. This includes ownership of rental property within the City of Xenia.
When to File:
The due date for taxpayers who end their taxable year on December 31 is April 15 (or the due date for Federal returns) of the following year. Late filing of a return, whether tax is due or not, subjects the taxpayer to penalty and/or interest. Forms to request an extension to file a Xenia City return are available here or in our office. An extension to file must be received before the due date for the return. The City of Xenia does not receive any copies of Federal extensions, so an extension must be filed with our office. This is an extension to file, not an extension to pay.
Estimated Tax Payments:
If a taxpayer has income that will be subject to Xenia income tax, but the tax is not being withheld for the taxpayer by an employer, the taxpayer is responsible for making estimated payments on the tax liability. To avoid penalty and interest, the taxpayer must pay either 80% of the income tax liability (as shown on the final return) or 100% of the previous year’s tax by January 15. The tax office will be glad to assist taxpayers in calculating what estimated payments should be made to avoid penalty and interest. Since the tax rate effective 1/1/2011 is 2.25% and the maximum credit for taxes paid to other cities is 1.5%, if you work outside the City of Xenia, in most cases, you must make estimated payments to avoid a penalty.
Tax Preparation:
The tax office is available to prepare city income tax returns at no charge during the hours of 9 AM and 5 PM, Monday through Friday (holidays excluded). To prepare a city income tax return, the taxpayer must provide all W-2s, 1099s, and their Federal Income Tax Return with all attachments. If taxes have been paid to other cities, W2-s or other documentation showing the cities receiving the withholding payments must be provided to receive credit.
