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1. Do I have to file a City of Alliance Income tax return?

Yes, if you were a resident of Alliance during any part of the year, had earned income, and are 16 years of age or over. You must also file if you had a business or rental property located inside the city even if you are not a resident.

No, if you are retired and your only source of income is retirement earnings (pensions, social security, etc.), if you are permanently disabled, if you worked in Alliance but were not a resident and had Alliance tax withheld, if you are on active duty in the military.

2. I pay tax where I work, and I have to pay again when I file my taxes in Alliance because I live here. Isn’t that double taxation?

A – Taxpayers are allowed credit for tax paid to other municipalities where they work, not to exceed one and three quarter percent (1.75%) of income earned in other municipalities. There is no reciprocal agreement among Cities, and Alliance receives no money from other cities where residents work. Therefore, the City is requiring all taxpayers to pay a portion of tax to Alliance.

EXAMPLE 1. If last year you lived in Alliance and worked in Canton where you earned $10,000, you would have paid Canton $200.00 in tax (2.00% of $10,000). The tax due Alliance is also $200.00 You will be given credit for $175.00 leaving a balance of $25.00 owed to the City of Alliance.

EXAMPLE 2. If last year you lived in Alliance and you worked in Salem where you earned $10,000, you would have paid Salem $100.00 in tax (1.00% of 10,000). The tax due Alliance is $200.00 You will be given a credit for the full $100.00 because the tax rate is less than one and three quarter percent (1.75%), and you will have a balance due of $100.00 to the City of Alliance.

3. I am still confused by the income tax form and have more questions. Where can I get help?

A – City tax personnel will be happy to assist you with any questions or to fill out the income tax form for you. Simply stop by the office or call (330) 821-9190 during office hours of 8:30 a.m. to 4:30 p.m. daily. No appointment is necessary and the service is entirely free.