FREQUENTLY ASKED TAX QUESTIONS FOR THOSE FILING UNDER A SOCIAL SECURITY
NUMBER FOR TAX YEAR 2015*
*This document is not designed to supersede or replace the City of Xenia Income Tax Rules and Regulations.
Last updated 10/21/2015
What is Xenia’s current tax rate?
Xenia’s current tax rate is 2.25%.
What is the due date for city taxes?
To be considered on-time, tax returns must be received by the Tax Division prior to closing on April 18,
2016 or postmarked by April 18, 2016 (postmarks will be checked). Only USPS postmarks will be used to
determine when a return was mailed – dates from postage meters will not be used to determine when a
return was mailed.
Alternate E-Filing is available using the Tax Tool available at our website. To be eligible for E-Filing, you
must be an established Xenia taxpayer. You can use this Tax Tool if you have no taxable income (no
supporting documentation is required), OR if you have taxable income, you must upload a copy your
Federal return (and all required Federal schedules) and all W-2s. Note: Due to limited staffing, no support is
available for the Tax Tool after April 1, 2016. Please plan accordingly since late filing penalties will not be
waived.
What are your hours?
The Tax Division’s customer service hours are Monday through Friday, 9 AM to 5 PM (Eastern Standard
Time). The tax department will have extended hours on Monday, April 18, 2016 of 8 AM to 6 PM.
Who must file a Xenia City tax return?
 Xenia residents 18 years of age or older even if you have no city taxable income.
 Xenia residents 16 and 17 years of age working at jobs where Xenia City tax is not fully withheld
 Any business within the City of Xenia even if the business has a loss (a rental unit within the city is
considered a business within the city).
Is there any advantage for a married couple to file separately?
No, there is no advantage on city taxes to filing separately and married couples are encouraged to file a
joint return.
I am disabled or did not work.
Do I still need to file a Xenia City tax return?
Yes, a city tax return is required. Xenia is a mandatory filing city requiring all residents under 65 years of age
to file an annual tax return even if the resident has no city taxable income.
I do not need to file a Federal tax return.
Do I still need to file a Xenia City tax return?
Yes, a city tax return is required. Xenia is a mandatory filing city requiring all residents under 65 to file an
annual tax return even if you have no city taxable income. Your Federal filing status has no impact on your
Xenia City filing status.
I only lived in the City of Xenia for a portion of the tax year.
Do I still need to file?
A Xenia City tax return is required for the period that you lived in Xenia. If you need to prorate your income
on your tax return, please attach all worksheets showing how you calculated your Xenia taxable income.
Are lottery and gambling winnings and awards and prizes taxable?
All lottery and gambling winnings are taxable and the value of any awards and prizes are taxable.
Is retirement income, income from a 401K, Social Security Payments, interest and dividends earned taxable?
The City of Xenia does not tax retirement income, Social Security payments, interest or dividends.
The instructions state that I will be taxed on my Medicare Wages (box 5). Why is this amount the basis for city
taxes?
The Ohio Revised Code states that city taxes are based on Medicare Wages. Your Medicare Wages (box 5)
may be higher than box 1 (Wages, Tips and other Compensation) since box 1 may be reduced by tax
deferred retirement plans. When you receive your retirement income, it is not taxable by the city.
Can I file my Xenia City income taxes on the Internet?
The City of Xenia has a Tax Tool available to assist you with preparing your tax return. The Tax Tool is
available for established Xenia taxpayers at our website. After using the Tax Tool, you must still print your
return, attach all required supporting documents and either deliver or mail it to the Xenia Income Tax
Division by April 18, 2016 or Alternate E-Filing is available. To be eligible for E-Filing, you must be an
established Xenia taxpayer with no city taxable income or you must upload a copy your Federal return (and
all required Federal schedules) and all W-2s. To be considered on-time, all E-Filed returns must be filed by
midnight on April 18, 2016 (keep your confirmation email for your proof of filing).
If you have a tax preparer prepare your Xenia return, you must deliver or mail your return to the Tax
Division by the due date since your preparer cannot electronically file your return.
Do not use any electronic filing options for city taxes available in Turbo Tax or other similar products – the
City of Xenia will not receive returns prepared using these products.
How can I pay my balance?
Mail: Checks (no starter checks accepted) or money orders may be mailed to:
City of Xenia
Income Tax Division
PO Box 490
Xenia, OH 45385-0490
Please include your account number, SSN or FID with all checks/money orders.
Drop Box: Payments may be made using check (no starter checks) or money order via our 24 hour drop box
in the Market Street lobby of City Hall. Please clearly indicate on the drop box envelope that the payment
is for Income Tax and include your account number, SSN or FID with your payment.
Internet payments: Payments may be made using the links on the “Pay Your Taxes” webpage (under the
Tax Division at www.ci.xenia.oh.us)
Payments by Phone: Contact Payment Services Network (PSN) at 877-885-7968
In Person: Payments are accepted Monday – Friday between the hours of 9 AM to 5 PM (except holidays)
at the A/R Division on the 1st floor of City Hall via cash, check (no starter checks accepted), money order, or
Visa/MasterCard.
I have a balance due but I cannot pay it by the filing deadline.
What should I do?
You should always file your return on time even if you cannot pay the balance in full at that time. Filing on
time reduces late filing penalties and avoids possible legal action for non-filing.
I have tried to complete my return but I need help.
What help is available?
There is a Tax Tool on our website that can assist you in preparing your City of Xenia income tax return.
Note: Due to limited staffing, no support is available for the Tax Tool after April 1, 2016. Please plan
accordingly since late filing penalties will not be waived.
If you still need assistance, bring the following to the Tax Division and we will assist you in preparing your
tax return:
 Your personalized postcard, with tax account number (if available)
 All W-2s
 If you are self-employed, bring all 1099s and Schedule C’s from your Federal tax return.
 If you have rental property, bring all Schedule E’s from your Federal tax return. If you have sold
rental property during the year, we need all Schedule 4797’s also to recoup depreciation.
 If you are deducting 2106 Expense, bring your 1040, Schedule A and Schedule 2106 from your
Federal tax return
Do not mail in “blank” tax returns for the Tax Division to complete and mail back to you (they will be
returned to you for completion) – you must come to the Tax Division if you need us to assist you in
preparing your return.
I am self-employed or work outside the City of Xenia.
penalty?
How can I avoid an underpayment of estimated tax
To avoid this penalty, either 80% of your 2015 total tax due or 100% of your 2015 taxes must be received by
the Tax Division by January 15, 2016. The penalty for underpayment of estimated taxes is 10% of the
amount underpaid. There is a calculator available on the Tax Division webpage to help you determine
what estimated payments you should make to avoid a penalty.
I work in another city that withholds city tax.
Will I still owe taxes to Xenia?
Xenia allows a credit up to 1.5% for taxes paid to another city. Our tax rate is 2.25% so at a minimum, you
will owe the City of Xenia 0.75% taxes. For example, if you work in Dayton where the tax rate is 2.25%, you
receive credit of 1.5% on your Xenia return. If you work in Lebanon, where the tax rate is 1%, you receive
full credit on your Xenia return.
Due to the tax rate change for 2011, if you work outside the City of Xenia, in most cases, you must make
estimated payments to avoid a penalty.
The City of Xenia receives no revenue from taxes paid to another city.
I am not going to be able to file by the due date.
What should I do?
You may submit an extension to file request on or before April 15, 2015. There is an e-form to submit your
extension electronically on the Tax Division webpage. We will accept a Federal extension if we receive a
copy by the due date (the city is not notified automatically when a Federal extension is filed). An extension
to file is not an extension to pay. The estimated tax due should be paid with the extension to file request
to reduce non-payment penalty.
If you wish to receive a copy of your approved extension to file that was submitted via USPS, please include
a self-addressed, stamped envelope when mailing your extension to file request. In all cases, if your
extension to file is denied, you will be notified by mail
What is the penalty for late filing?
The minimum penalty for late filing is $25.00. The late filing penalty is calculated as 5% per month (or part
thereof) of the unpaid taxes or $25.00, whichever is greater.
What is the penalty for non-payment?
There are two types of payment related penalty:
Underpayment of estimated taxes – this penalty is applied when 80% of the current year’s total tax due or
100% of the prior year taxes are not received by January 15 of the following year via withholding or
payments from the taxpayer. This penalty is 10% of the amount underpaid.
Non-payment of taxes – this penalty is applied to the amount of taxes unpaid on the due date. Even if you
have an approved extension to file, your account is still subject to non-payment penalty since an extension
to file is not an extension to pay. This penalty is 5% per month (or part thereof) of the unpaid taxes.
What is the interest charged on unpaid balances?
The interest is 1.5% per month (or part thereof) compounded of the unpaid balance (includes taxes, penalty
and previous interest applied).
Can I use Xenia School District Tax paid as a credit on my Xenia City return?
No, school district tax cannot be used as a credit again city tax liability.
Can I use JEDD-01 (AKA Tecumseh JEDD) Tax paid as a credit on my Xenia City return?
Yes, since the JEDD-01 is a JEDD created by Xenia Township and the City of Xenia, full credit will be given for
JEDD-01 tax paid against Xenia city tax liability.
Payment Agreements
Payment plans are available to individual taxpayers (those filing under a Social Security Number) if they
show both the financial need for the payment plan and the ability to make reasonable payments. Payment
plans are not available for business accounts (those filing under a Federal ID number) or withholding
accounts.
Payment Plan Process
No payment plans will be granted for a tax year until after the tax due date for that tax year. For example,
if a return is filed on February 15, no payment plan may be requested until after tax due date (normally
April 15). You must have a copy of your Xenia Tax return available to request a payment plan since there
are time periods where your return may not yet have been reviewed/posted by the Tax Division.
For tax year 2015, no payment plans will be considered before May 9, 2016. To avoid non-payment
penalty on tax balances due on returns filed by April 18, 2016, you must submit your completed Request
for a Hardship Payment Plan form to our offices by the end of the day on Friday, May 13, 2016.
A payment plan cannot be considered until the Tax Division receives a completed Request for a Hardship
Payment Plan form. Forms may be submitted via Secure Email (link on our webpage), faxed to
937-376-8914, mailed to PO Box 490, placed in our 24 hour drop box in the lobby of City Hall or hand
delivered to the Tax Division. Payment plans must be signed by the taxpayer and a signed copy returned to
the Tax Division to be valid. On joint returns, either spouse may sign the plan which becomes binding on
both parties. No 3rd party may sign a payment plan.
I have employee business expenses (Federal Form 2106).
Can I use them to reduce my city tax liability?
Yes, if you attach all required documentation (copy of Federal 1040, Schedule A, and Schedule 2106).
Please use the worksheet on the back of our tax return to help you calculate the allowable amount.
If you work in another city, please note that resident individuals of the City of Xenia who are required to pay and do pay a
tax to another municipality on qualifying wages, commissions or other compensation, for work done or services performed
in such other municipality must seek reimbursement of their 2106 employee business expenses from the municipality
where the income was earned and taxed. Xenia taxable income cannot be reduced for employee business expenses on
income that was earned and taxed in another municipality. For example, if you work in the City of Dayton and pay Dayton
city taxes, you must seek reimbursement for your 2106 expenses from the City of Dayton.
I wish to dispute an assessment notice I received.
What should I do?
All disputes, whether they are for changes in taxes or the addition of penalty or interest, must be made in
writing. Be sure to file your dispute within the time prescribed within your notice or the assessment will
become final.
Use the e-form available on our webpage or mail dispute letter to:
Diana Steck
A/R Manager
City of Xenia Tax Division
PO Box 490
Xenia, OH 45385-0490
You will receive a response in writing (via Secure email or USPS) to your dispute. For additional information
on your rights to dispute an assessment, please review our Rules and Regulations available at our website.
How can I contact the Tax Division or send them information?
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Use the Secure email link on the Tax Division webpage at www.ci.xenia.oh.us. You may scan
documents and attach them to your Secure email.
Fax information to 937-376-8914 (fax in service 24 hours a day and is located in a secure location)
Mail to:
City of Xenia
Income Tax Division
PO Box 490
Xenia, OH 45385-0490
Place information in the 24 hour drop box in the Market Street Lobby of City Hall. Please place
your documents in a sealed envelope and include an explanation of the submission in the envelope.
Call our offices 9AM to 5 PM, M-F, Eastern Standard Time at 937-376-7248.
What are the changes for Estimated Payment for Tax Year 2016 & Beyond?
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 90% of the income tax liability (as shown on the
final return) or 100% of the previous year’s tax by December 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 January 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.
The quarterly estimated payments for calendar filers are due as follows to avoid a penalty:
22 1/2% of Xenia tax liability (minus any credits) on or before April 15
45% of Xenia tax liability (minus any credits) on or before June 15
67 1/2% of Xenia tax liability (minus any credits) on or before September 15
90% of Xenia tax liability (minus any credits) on or before December 15