How do I handle credit for taxes paid to other cities?
The City of Fairfield allows credit for taxes paid up to its rate of 1.5%. If you paid taxes to another city were the rate is lower, you can claim full credit. However, if you paid taxes to another city and the rate is higher than 1.5%, the credit needs to be capped at Fairfield's rate. Take the taxes paid to the other city and divide it by their tax rate of to get to the wages that were taxed, and then multiply those wages by Fairfield's 1.5% rate. Each W-2 must be figured separately as credits for taxes paid to other cities on one W-2 cannot offset each other.

For example: You worked in Hamilton and Blue Ash. In Hamilton, your wages were $20,000 and taxes paid to Hamilton $400. In Blue Ash, your wages were $15,000 and taxes paid to Blue Ash were $180. The calculation would be as follows:
Hamilton W-2: $400 divided by 2.0% = $20,000 multiplied by 1.5% = $300
Blue Ash W-2: $180
Total credit for taxes paid: $480
Total taxes owed to Fairfield: $35,000 multiplied by 1.5% equals $525
Balance owed: $525 minus $480, equals $45

This balance is due to Blue Ash's rate (1.2%) being lower than Fairfield's rate (1.5%). You cannot offset the credits by using all of Hamilton's credit with all of Blue Ash's credit. The money remains in the community in which you paid it; therefore, the City of Fairfield cannot allow credit above its rate.

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1. Does the City collect the personal property taxes paid by businesses located in Fairfield?
2. When are you open?
3. How soon can I expect my refund?
4. My company will not withhold Fairfield taxes. What can I do?
5. If I have W-2 income and a schedule, can I use a schedule loss against my W-2?
6. Does Fairfield have a school district tax?
7. I have rental property, do I need to file on the property with Fairfield?
8. Do I have to file under the same status as I do my federal and state returns?
9. I have business expenses, can I claim them?
10. I have moved out of Fairfield, but keep getting letters and/or returns from you, what do I need to do?
11. Do I need to file a return?
12. How do I get a return?
13. What needs to be included with my return?
14. How do I handle credit for taxes paid to other cities?