The Village of West Union has enacted a local income tax on all wages, salaries, and commissions earned by residents within the Village of West Union, or employees working within the limits of West Union. Beginning on January 1, the West Union income tax rate became 1% (.01) on total earnings before any deductions including deductions for IRA's, KEOGH, Tax Deferred (Tax Sheltered) Annuities (TDA/TSA), or any other similar deductions. The previous West Union income tax rate was ½% (.005) from January 1, 2002 to December 31, 2007. All earned income of residents of West Union is subject to this tax except Section 125 deductions. This tax applies to every resident even those who do not work inside the limits of the Village of West Union.
Definitions
Taxable Earned income - includes all wages, salaries, commissions, net income from a business, or any other compensation for services or work performed including non-monetary compensation.
Non-Taxable Income - includes all non-employee income such as: Social Security income, retirement income, pensions, interest received from savings or certificates of deposit, welfare, A.D.C., unemployment compensation, and military income and Section 125 deductions. Residents who receive a tax return from West Union Income Tax Bureau and their only source of income is from the sources listed above, must notify the Tax Bureau in writing of this situation.
Minimum Earned Income - Every resident of West Union with an earned income of $1,000 or more during the year is required to file an income tax return even if no tax is due. If the amount of tax due is less than $10.00 no payment will be required, but a tax return must be filed. If the amount of refund is less than $10.00, no refund will be issued.
Tax Credit - The West Union Income Tax ordinance provides a tax credit for local income tax that was deducted from your earnings and paid to another city or village (not state or federal taxes paid). The maximum amount of tax credit allowed is 1% (.01) of gross earnings per W-2. For example, if the gross earnings (the larger amount from Box 1, 5, or 18) reported on a W-2 was $5000, the maximum tax credit for that income would be the lesser amount of the actual tax withheld and paid to another city or village (if any) or $50 ($5000 times .01 = $50).
Excess tax credit - Any tax withheld for another city or village in excess of 1% per W-2 cannot be used to offset or reduce the tax liability of other income reported on a different W-2 form. For example, if one of John Smith's W-2's indicated an income of $10,000 with a $130 deduction to another city, and another W-2 indicated a $4,000 income with no deduction for another city or village, the maximum tax credit would be limited to 1% of the $10,000 which is $100. The excess tax withheld from the one W-2 of $30 cannot be used to offset or reduce the tax liability of the $4,000 reported on the other W2 form. If both the husband and the wife work, any excess tax paid by one spouse to another city or village cannot be used to offset or reduce the tax liability of the other spouse.
Declaration of Estimated Tax - an estimate the total taxable income (before any deductions) expected to be received in a year. (Use your last year's earnings rounded to the nearest $100.) Multiply the estimated income by 1% (.01). Indicate any amounts expected to be deducted by your employer for West Union, or for another city or village. Subtract the expected tax credits (if any) from your estimated West Union tax liability to determine the balance of your estimated tax due. You may pay the full amount of this estimate when you file your return, otherwise, you must past at least 90% of that estimate in 4 quarterly installments—the first installment being paid with your tax return on April 15. The Income Tax Bureau will send notices when each quarterly installment becomes due.
Filing Deadline - the last date for submitting your West Union Income Tax return is April 15 of each year (or the date designated by the IRS). Itinerant Employment (12 Day Occasional Entry Rule) - any non-resident individual who receives compensation for services performed inside the Village of West Union on twelve (12) or fewer days during the calendar year is not subject to the West Union Income Tax.
Tax Extension - You may request an extension for filing your tax return if you are unable to meet the April 15 deadline. A valid extension request extends the due date for filing a return three (3) months from the original due date for the return.
Individual Tax Forms
FR - Individual Return - annual individual income tax return due by April 15 (or the date designated by the IRS)..
ET– Estimated Income Tax Declaration - an estimate of tax liability to West Union
Q1-Quarterly Installment of Estimated Tax - Statement of estimated tax due each quarter (April 15, June 15, September 15, and January 15) based on the previous year's tax return.
Tax Bureau Services
Tax Preparation - The Income Tax Bureau will help residents prepare their tax return free of charge.
Payment Plan - Individuals who are not able to make the full payment of income taxes they owe to the Village of West Union, can arrange to make regular monthly payments to the Income Tax Bureau. Details and specific arrangements can be made by contacting the Income Tax Bureau.
E-Z File! If the only source of income for taxpayers is from wages which were reported on W-2 forms, simply attach a copy of every W-2 form received from your employers, sign the tax return at the bottom, enclose a self-addressed, stamped business size envelope and the Tax Bureau will complete your return and mail you a copy. If you are entitled to a refund, the Tax Bureau will automatically send it. If you owe any taxes, you will receive a notice from the Tax Bureau. There is no charge for this service if you pay the full amount of tax due (if any) within fifteen (15) days and include a self-addressed, stamped business size envelope.
Questions?...
Who has to file a West Union Tax Return (Form IR)? Any resident of West Union who had taxable earned income of $1000 or more during the year (see definitions) or a non-resident working inside West Union who does not have West Union tax withheld from their paycheck.
I am on Social Security, ADC, Retirement, Welfare, or other non-employment income and do not have a job where I earn money, do I have to file a West Union Tax Return? If your only sources of income are from the list defined under Non-Taxable Income (see definitions), you do not need to file a West Union return.
I received a West Union Tax Return in the mail but I am not required to file, what should I do? Contact the Income Tax Bureau in a letter or by phone and inform them of your income status. You will need to provide some form of evidence to claim a non-filing status.
I don't know how to complete the West Union Tax Return, what should I do? If your only income is from wages reported on W-2’s, sign the bottom of the Individual Income Tax form and attach a copy of all your W-2’s. The Tax Bureau will complete your return for you.
I pay taxes to another city or village do I still need to file a West Union Tax Return? Yes, residents need to file a West Union Tax return. However, since West Union allows a credit for local taxes paid to another city or village, you may not owe any additional taxes.
What if I can't pay all of the taxes I owe to West Union? You still should file by the April 15 deadline and pay at least 1/4 of the amount you owe. The Income Tax Bureau will establish a payment plan for the balance of the taxes you owe.
I've only lived in West Union a few months do I owe taxes for the entire year? No, you will only owe taxes for the portion of income you received while a resident of West Union. The Income Tax Bureau will be willing to assist you in determining the proper amount of taxes due.
I work in West Union but live elsewhere do I need to file a West Union tax return? If your employer already withholds West Union Income Tax from your paycheck, you do not need to file an tax return, if not you are required to file a tax return.
What are the office hours of the Income Tax Bureau? During tax season (January 29 – April 15) the Tax Administrator is present in the Village Clerk's office at 33 Logans Lane Tuesdays 3:00 p.m. – 6:00 p.m. and Saturdays 8:00 a.m. to 2:00 p.m.
If you have any additional questions regarding the West Union Income Tax, please call 937-217-8855 and leave a message. Your call will be returned as soon as possible.
