Little-known tax fact could save residents money
While many are no doubt relieved to have their 2012 tax filings behind them, there are probably a number of folks out there who ended up filing an extension for one reason or another.
During a recent conversation with some of my colleagues, we touched on some of the intricacies of income taxes vis a vis the different rates between communities and, in some cases, a little-known opportunity to save on what you owe while also benefitting your home community.
As an example:
The city of Upper Arlington's income tax rate is 2 percent, while the city of Columbus' rate is 2.5 percent. Since we all pay these taxes to the community in which we work, if a UA resident works in Columbus, he (or she) is paying the higher 2.5-percent rate.
Now, if that resident works from home on a regular basis, he could actually obtain a refund for those days spent in UA -- essentially the income tax owed for days worked here would be owed to Upper Arlington at our 2-percent rate, with the 0.5 percent that would otherwise go to Columbus returning to the resident's pocket.
The same might be true for those workers who frequently travel for their jobs.
From a dollars-saved perspective, for every $10,000 in wages attributed to work performed here instead of Columbus, the resident would keep $50 and the city of Upper Arlington would receive $200.
This might not sound significant, but every little bit helps your bottom line, and the positive impact to your home community could quickly add up if everyone who falls under these scenarios follows up to have the hours credited appropriately.
Food for thought.
We all know and love the UA Civic Association for its fantastic series of annual family-friendly events: the Easter Egg Candy Hunt, Memorial Day Run, Golden Apple Awards and, of course, the Fourth of July (among many others).
These events aren't free to produce; neither are they funded by the city -- though we do partner and provide resources on some events. UACA events are primarily funded through the tax-deductible membership donations of Upper Arlington residents.
The UACA's annual membership drive, The Walk, is in full throes this week, ending Sunday, April 28. Hundreds of resident volunteers will be walking the neighborhoods of Upper Arlington, seeking membership renewals. During The Walk, volunteers make personal contact with each of the city's 13,000 households. Family memberships cost only $25 and single or senior memberships are $10.
If for some reason they miss you during The Walk, memberships can be purchased online at any time at uaca.org.
Please consider helping fund some of the events that make UA a great place to live -- or perhaps even become an active part of the group. There is no better way to give back to your community.
Theodore J. Staton is Upper Arlington's city manager.