(Posted Feb. 24, 2016)
By Kristy Zurbrick, Madison Editor
Retired London residents who earn no taxable income no longer have to fill out a city income tax return each year.
London council unanimously approved the exemption on Feb. 18. Amy Marsh, assistant tax director, said the change is primarily about convenience.
“It’s one less thing for retired residents to worry about. It eliminates the stress of having to fill it out and bring it in. They don’t have to worry anymore about forgetting it or being late,” Marsh said.
The change also benefits the tax office in the form of less paperwork. Staff can spend the time on other tasks, Marsh said.
Non-taxable income includes Social Security, pensions, dividends and interest. Taxable income includes money earned from a business, rental properties or job. Retirees who have any kind of taxable income are not eligible for the exemption and must file a city tax return.
Retirees who qualify for the exemption must complete an exemption certificate. This is a one-time requirement. To take affect starting with this tax season, the certificate must be submitted by April 30. Retirees can fill out the form in person at the city tax office or request a form by mail. They must supply proof that neither they nor their spouse receive taxable income.
If a person signs the exemption certificate then later earns taxable income, the certificate becomes invalid and the person must notify the tax department and file a city tax return.
The London tax office is located at 8 E. First St. Hours are 8 a.m. to 4 p.m. Monday through Friday. For more information, call (740) 852-0693. Amy Marsh or Tina Boggs, tax specialist, can answer any questions about the exemption.
