City of Columbus

Income Tax FAQs

What is Taxable?

• What is Taxable?
  1. Bonuses.
  2. Compensation paid in property or the use thereof at fair market value to the same extent as taxable for federal tax purposes and so indicated on the W-2 form.
  3. Contributions made by or on behalf of employees to a qualified deferral plan (401K and the like) - taxed in year earned, deferral not permitted. Exception: employer matching contributions offered under a cafeteria plan are not taxable. Deferrals even under a cafeteria plan are always taxable.
  4. Contributions made by or on behalf of employees to a tax-deferred annuity or stock purchase plan includes any plan where employee has the option to defer). 
  5. Cost of group term life insurance over $50,000 (unless part of a cafeteria plan). 
  6. Director's fees. 
  7. Adoption assistance payments (unless part of a cafeteria plan).
  8. Excess employee discounts. 
  9. Income from guaranteed annual wage contracts. 
  10. Income from jury duty. 
  11. Income from wage continuation plans (includes retirement incentive plans and buy-outs). 
  12. Income received as a result of a covenant or agreement not to compete, which relates to employee wages. 
  13. Interest on below market loans. 
  14. Moving expense reimbursements (follow Federal rules but non-reimbursed expenses are not deductible). 
  15. Pre-retirement distributions from retirement plans (except previously taxed income from deferred plans). 
  16. Prizes, awards and gifts - if connected with employment. 
  17. Profit Sharing. 
  18. Royalties (unless derived from registered copyrights, patents or trademarks). 
  19. Severance pay. 
  20. Sick and/or vacation pay.
  21. Stipends - if work required (vow of poverty not recognized). 
  22. Stock bonus incentive plans.
  23. Stock options. 
  24. Strike benefits paid by employer.
  25. Supplemental unemployment paid by employer. 
  26. Taxes paid by employer on employee's behalf. 
  27. Tips. 
  28. Union steward fees. 
  29. Clergy income per Ohio Revised Code §718.01(R)(2)(e).
  30. Gambling Winnings. Losses may not offset winnings.
  31. Prizes and winnings from sweepstakes.
      
      
      

  NOTE: This list is intended for reference purposes only. It may not be all inclusive and is subject to revision without notice.

   

• What Are Unincorporated Businesses?
  1. Sole proprietorships – Schedule C, Federal Form 1040
  2. Rental properties - Schedule E, Federal Form 1040
  3. Partnerships, Joint Ventures and other type associations (These businesses file their own returns using Form BR-25; however, you must report your share of their city taxable income on your individual return if you are a partner.)
  4. Farm Net Income - Schedule F, Federal Form 1040

  NOTE: This list is intended for reference purposes only. It may not be all inclusive and is subject to revision without notice.

• What Income Is Not Taxable?
  1. Alimony. 
  2. Annuities - at time of distribution.
  3. Capital gains.
  4. Dividends.
  5. Exempt rental allowance for clergy per IRS.
  6. Fellowships (unless work/services required).
  7. Government allotments.
  8. Income earned while under 18 years of age.
  9. Income from Foster Grandparent Program.
  10. Income of religious, fraternal, charitable, scientific, literary or educational institutions to the extent that such income is derived from tax-exempt real estate, tax-exempt tangible or intangible property or tax-exempt activities
  11. Insurance benefits - unless your employer paid the premiums. (Pro-rating is allowed if you paid a portion of the premiums).
  12. Interest.
  13. Long-term disability payments. 
  14. Meals and lodging required on premises.
  15. Military pay including reserve pay.
  16. Nonresident subchapter S corporation income to a resident shareholder.
  17. Non-qualified deferred compensation paid in or after tax year 2020.
  18. Patent and copyright income.
  19. Pension income - includes lump sum distributions.
  20. Prizes - unless connected with employment.
  21. Royalties - if derived from intangible property.
  22. Salaries of the developmentally disabled while working in a government funded workshop for less than minimum wage - City of Columbus only.
  23. Short-term disability payments.
  24. Supplemental Executive Retirement Plans paid in or after tax year 2020.
  25. Social Security benefits.
  26. State unemployment benefits.
  27. Welfare payments.
  28. Worker’s Compensation.
  29. Income from serving as a precinct election official less than $1,000.
  30. Non-wage income from motor vehicle transportation companies regulated by the PUCO, including schedule C motor vehicle transportation income.
      
      
      
      NOTE: This list is intended for reference purposes only. It may not be all inclusive and is subject to revision without notice.