The City of Cleveland Heights

Division of Income Tax
216-291-3978, option 2
incometax@clvhts.com

The City of Cleveland Heights Division of Income Tax, located at City Hall, 40 Severance Circle, is open Monday-Friday, 8:30 am-5:00 pm. If you have additional questions after reading the information contained here, please feel free to contact us.

2009 INCOME TAX FORMS

ONLINE TAX PREPARATION TOOL
PLEASE NOTE! THE ABOVE ONLINE TAX PREPRATION TOOL IS NOT AN ELECTRONIC FILING TOOL!

This link will assist you in preparing your 2008 Cleveland Heights Income Tax return. You enter your demographic data (Name, Address, City, State and Zip and income data.) then print the return, sign it and attach any payment along with supporting documentation (W-2s, Schedule C for Sole Proprietor Business, Schedule E for Rental Property) before mailing the return to the Cleveland Heights Income Tax Office. Note that you can have the tax tool system pull down any 2008 Estimated payments that you made by inserting the Pin Code # at the top of the Income Tax form that was sent to you. Please refer to the top right side of the Cleveland Heights form that was mailed to you.

RECEIVED AN INCOME TAX BILL? IT CAN BE PAID ONLINE. CLICK HERE.

Income Tax Information for Individuals:
You should file a City income tax return if any of the following applies:

You lived in Cleveland Heights at any time during the tax year and are 18 years of age or older.
You worked in Cleveland Heights during the tax year and had no city income tax withheld from your income.
You operated a business in Cleveland Heights during the tax year.
You owned rental property in Cleveland Heights and the gross monthly rental was $250 or more.

Short Form /Long Form

If you have wage income only, you may file Form I-7 Short Form. Short forms are due by March 15. With this form, you only need to record your income and withholding from your W2 or 1099, then mail it in. The City of Cleveland Heights will calculate the tax due, if any, and send you a billing statement.
If you have income in addition to or other than wages, (ex. business income (Schedule C), rental income (Schedule E), you must complete Form I-8 Long form. On this form, you compute the amount of tax due and remit your payment with the return. Long forms are due by April 15.

'Taxable Income' For City Tax Purposes
The City of Cleveland Heights taxes all 'earned income' of residents who are 18 years of age or older. The earned income of residents is taxable regardless of where you actually worked.

Earned incomeEarned income includes income from wages, salaries, bonuses, commissions, fees, tips, the net profits from business, professions and partnerships; and the net income from rental property are taxable if the gross monthly rent exceeds $250 per month. As of January 1, 2004, all gambling and lottery winnings in the amount of $100,000 or more are considered taxable income.

You may not exclude from taxable income your contributions to retirement accounts, annuities, individual retirement accounts (IRAs) and other similar plans that are tax deferred for state and federal purposes. Supplemental unemployment benefits (subpay) are taxable.

Non-Taxable Income
You do NOT have pay city income tax on: interest, dividends, pensions, Social Security, welfare, state-paid unemployment benefits, proceeds from insurance, military pay received by members of the armed forces, alimony, and any income earned prior to your 18th birthday.

Part-Year Residents
Those who moved into or out of Cleveland Heights during the year only owe tax on income earned while living in Cleveland Heights. If the actual amount earned while living in Cleveland Heights is known, that amount should be used. Otherwise, a pro-ration of income based on the number of months you lived here is acceptable.

TAX RATE: The City of Cleveland Heights imposes a 2% tax rate on all income earned by residents. There is also a 2% tax due on all income earned within the city by non-residents.

TAX CREDITS: Against the tax liability, the City gives residents a credit that is determined in one of three ways:

If the employer withholds income tax and pays that withholding to Cleveland Heights, then the taxpayer received a credit for the full amount withheld and paid to Cleveland Heights.
If the income was earned outside Cleveland Heights and if that income was taxed by the city in which it was earned at a tax rate of 1% or more, the credit is equal to the income that was taxed by that city multiplied by .005.
If the income was earned outside of Cleveland Heights and if that income was taxed by the city in which it was earned at a tax rate of less than 1%, the credit is equal to one-half of the amount paid to that city.

TAX DUE: The 2% tax minus the credits (usually 1/2 of 1%) is the total income tax due before subtracting estimated payments made to Cleveland Heights for this tax year.

DUE DATES: Payments and forms must be received at the Cleveland Heights Income Tax Office by the due date: Short Form is due by March 15; Long Form is due by April 15. If you are using the U. S. Postal Service, be sure to mail your forms early enough so that it is received by the due date. Payments may also be made in person at the Cashier's Window at City Hall during business hours, 8:00am - 5:30pm, or placed in the payment drop box in front of City Hall at any time.

Estimated Tax Payments Are Required
You will be charged a $25 penalty if your total payments for the tax year are not at least the smaller of:

100% of the actual tax due for the last year;
80% of the actual amount of tax due for this year.

In no case will the estimated tax penalty be charged if the tax due is under $100.
Estimated Tax Statements will be mailed to you on a quarterly basis. The tax should be paid when billed to avoid penalty and interest charges.

Due Dates For Estimated Taxes:
1/4 due by April 15, 1/2 due by July 15, 3/4 due by October 15, in full by January 15.

Penalty And Interest Charges

Any tax amount that is not paid by April 15 is subject to charges of penalty and interest.
Penalty is a one-time assessment of an amount equal to 20% of the outstanding balance due on the tax period being assessed.
Interest is assesses on the unpaid balance for each tax period on a monthly basis at the rate of 10% per annum.
A $25 penalty will be charged if the required estimated tax payments are not made.

For additional information or if you need income tax help, call the Cleveland Heights Division of Income Tax at 216-291-3978 (Option 2), Monday-Friday, 8:30 am to 5:00 pm.

Real Estate Tax
The City of Cleveland Heights has a split property tax rate. The 2005 Effective Residential Property Tax Rates are as follows: Cleveland Heights City/Cleveland Heights-University Heights School District - 92.4 mills; Cleveland Heights City/East Cleveland School District - 71.9 mills. Questions on real estate taxes should be directed to the Cuyahoga County Auditor's Office at 216-443-7010.