How It Works

The State of Ohio has mandated that all the municipal income tax departments in the state adhere to the law changes due to the passing of House Bill 5. All changes were as of 1/1/2016.

As of the 2018 filing, Net Operating Loss will be allowed with limitations. Due to the passing of House Bill 5, individuals may use up to 50% of their losses from previous years to offset any self employment or rental income. Any Net Operating Losses cannot offset W2 wages. These losses can be carried forward for 5 years.

Beginning with the 2023 tax year (any years that begin on or after 1/1/2023), Net Operating Loss will be allowed at 100% of income or 100% of loss available, whichever is less. NOL cannot offset W2 wages.

The City of Ashland has mandatory filing for all residents 18 years of age and older. All residents 18 years and older are required to file an annual income tax return with our office regardless of income. Income tax returns are due April 15th.

All tax returns MUST be signed. If not signed, the tax return will be returned and will not be considered filed until the signed copy is returned.

Individual tax returns must have a complete copy of the Federal Schedules that apply.

College students, who are being claimed as a dependent on their Ashland resident parent’s federal tax return, must file with the income tax department.

Any resident who does work inside the city limits of Ashland is required to file on the income earned in the city.

If you are a non-resident and own rental property inside the corporation limits or you are a resident with rental properties inside or outside the city limits, you are required to file.

Part year residents are required to file an income tax return on the amount of time they were a resident. You may pro-rate your income to the amount of time you were a resident of Ashland. Please make notation on the income tax return for the amount of time you were a resident.

Exemptions to the mandatory filing requirement are residents who are retired or permanently and/or mentally disabled with no taxable income. Taxable income would include W-2 wages, 1099’s, rental income, business income, gambling, lottery winnings, and etc. An exemption form must be filed with our office and notify us of any changes to your status.

Residents are encouraged to make quarterly installments on their tax due if the amount of tax is over $200. These payments are to help relieve the burden of making the whole payment by April 15th of the following year, when the tax return is due. Any resident with a declaration set up will receive a notice in the mail when each quarter is due. A penalty of 15% of any tax due may be charged on any unpaid estimated taxes.** 

The late filing penalty for failing to file a tax return by April 15th is $25 for tax years 2023 and after. The penalty for tax years 2017-2022 is $25/per month up to $150. The non-payment Penalty will be 15% of the amount of tax not timely paid.

If your tax return is not filed in a timely manner, you can be summoned to appear in court. This is an additional cost to the taxpayer, as well as the time spent in court. We try to avoid this at all cost, with several notices being sent out from our office to notify the taxpayer of a delinquent account. 

The interest will be the Federal short-term rate, rounded to the nearest whole percent plus 5% per annum and is charged monthly. The interest rate is subject to change annually based on the Federal short-term rate. The interest rate for 2024 is 10% per annum.

Refunds must be requested on the original return. All documentation for a refund needs to be attached to the return.