The City of Tipp City Has a Mandatory Filing Requirement
This means every resident (18 years of age or older) or business operating within the city must file a return each year with the city regardless of any tax due on the return. The rate of tax is 1.5% with 1.5% credit for income taxes paid to another municipality.
Exclusions & Deductions
There is no exclusion or deduction from Tipp City taxation for the following:
- 1/2 self-employment tax
- Self-employed health insurance premiums
- Greater than 2% s-corp owner health insurance premiums
- The Federal non-deductible portion of meals and entertainment
- Net operating loss carry-forward / carry backs
Required attachments for individual returns include the federal Form W-2 reporting municipal taxable income and municipal tax withheld and/or copy of other city’s tax return showing tax paid to that city, federal Schedules C, E, and F, and Form 2106 to the extent applicable.
Required attachments for business returns include the applicable federal Form 1120, 1120A, 1120S, 1065 or 1041 to include Schedules A through M-2. You can find these on the Internal Revenue Services website.
Spouses may elect to file separate or joint returns regardless of federal and state filing elections. There is no city tax advantage for a husband and wife to file separate city returns.