Non-Taxable Income

  •  Interest Income     
  • Welfare Benefits
  • Social Security
  • Income from Federally Qualified Pension Plans
  • State Unemployment Benefits
  • Worker's Compensation
  • Proceeds of Life Insurance
  • Alimony
  • Active Duty Military Pay 
  • Capital Gains
  • Contributions made on behalf of employees to Cafeteria Plans
  • Annuity Distribution
  • Housing allowance for clergy to the extent that the allowance  to provide a home
  • Compensatory insurance proceeds derived from property damage or personal injury settlements                      
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Property Owners of Rental Property


 



All property owners of rental or leased property who rent to tenants of residential premises or business premises has two responsibilities:

First - you are required to report net profit/loss from any rental property located in the city limits.  This can be done by submitting a completed tax return that includes a Federal Schedule "E" or other appropriate schedule.

Second - Landlords are required to provide names, address (including suite letters, suite numbers, and/or apartment numbers, if applicable), phone numbers if know and move-in/move-out date of  tenants to the tax office annually.  We will send out an annual report in August or September and request that it be completed and return to our office.
 
In determining the taxable income from rentals, the deductible expenses shall be of the same nature, extent, and amount as allowed by the Internal Revenue Service for federal income tax purposes.  Owners of rental property who are non-residents of this municipality, whether individuals or business entities, are subject to tax only on the income from property located in this municipality, and in determining whether gross monthly rental exceeds the rental rate of this municipality, only the income from such properties located within this munipality shall be considered.
 
Owners of rental property who are residents of Waverly are subject to tax on the net income from rentals regardless of the location of the property owned, except that if any property is located and subject to a municipal income tax by another municipality, credit shall be given. 
Contractor Information

 Each and every contractor and subcontractor who conducts business or does work or any type within the Municipality shall register with the Tax Administrator upon commencement of such business or work.  Such contractor and/or subcontractor, or any combination of all, shall provide the Tax Administrator with a current and complete list of employees, contractors, and subcontractors who do or will provide work for such persons and whose profits, wages, earnings, or other types of compensation or remuneration are not presently subject to withholding of the Municipal Income Tax, as well as complete a “business questionnaire” through a form prescribed by the Tax Administrator.  In addition, such employers, contractors, and subcontractors are required to provide the Tax Administrator with the payroll records of such employees, contractors, and subcontractors who did provides such work, upon completion of the work performed or the end of the tax year, whichever is earlier.   Any person who violates any portion of this subsection shall be subject to a fine of Ten and 00/100 dollars ($10.00) per day per violation for each and every day they remain in violation, up to a cumulative maximum of Three Hundred and 00/100 Dollars ($300.00) per violation. 

 
 


 

Items to be included with Annual return

 

W-2 Form (s)
1099 Misc Form (s)
Form 1040 - Page 1 of the applicable federal 1040, 1040A or 1040EZ
Schedule C for Business income
Schedule E for Rental income
Schedule F for Farm 
Schedule E/K1 Partnership Income 
Form 5754 or W-2G for gambling or lottery winnings
Payment of tax due (checks are to be made payable to City of Waverly Tax Depart)