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Tax Return Filing Requirements:

• The City has mandatory filing for all resident taxpayers 18 & over*.  All Franklin residents must file a return annually, even if no tax is owed**.
• Income tax returns must be filed by the Federal Deadline, the 15th day of the fourth month following the year end.
• All businesses located within City limits must file a return, even if no tax is owed.
• All non-resident businesses, individuals and landlords who have income (or loss), perform work or services in the City, or own rental property within the City limits must file.
• All tax returns prepared by a third party must be submitted to the City by the resident or business. Third party electronic filing is not accepted by the City income tax department

*Taxpayers who are under 18 should submit a State ID or birth certificate to verify birthdate.
** Residents with only retirement income must file a final return to establish retirement status.

Required Documents:
The following documents are required to be included with your completed & signed Franklin income tax return:

• W2
• W2-G
• All Federal schedules (C, E, F, K-1, and 1)
• Federal Income Tax Return
• 1099-MISC & 1099-NEC

ESTIMATED TAX REQUIREMENTS: 753.07 Declaration of Estimated Tax
If your tax liability is $200.00 or more for the current taxable year you must pay as follows:

• 1st quarter due April 15th
• 2nd quarter due June 15th
• 3rd quarter due September 15th
• 4th quarter due January 15th for individuals, December 15th for businesses

The safe-harbor provision is that you pay at least 90% of your tax liability for the current taxable year no later than January 15th  for individuals and December 15th for businesses; or the amount of estimated taxes that were paid equals at least 100% of the tax liability shown on the return of the taxpayer for the preceding taxable year paid no later than January 15th for individuals and December 15th for businesses, provided that the immediate preceding taxable year reflected a period of 12 months and the taxpayer filed a return with the city under section 753.09 of this chapter as described in the local tax ordinance for that year.

Extension:
Any taxpayer that has requested a six month Federal Extension will also receive an extension for the filing of a City income tax return.  The extended due date of the City return is the fifteenth day of the tenth month after the year end. 

• Federal extensions must be attached to the tax return when filed. 
• An extension of time to file is not an extension of time to pay the tax due.  A penalty and interest charge will be assessed for all payments received after the deadline. 
• If no extension is filed, a late filing fee will apply.  

A taxpayer that has not requested or received a six month extension for filing the Federal income tax return may request the Tax Administrator to grant a six month extension of the date for filing the City income tax return.

• The City extension request form can be found here.
• The request must be received by the filing deadline. Requests are not accepted after the filing deadline has passed.

Penalty and Interest Charges:

• Penalty for failure to pay tax by the due date is 15% of the tax balance.
• Interest is accrued monthly. Rates are posted here. 
• Beginning in tax year 2023, penalty for failure to file your income tax return by the due date is $25.00.
• Prior to tax year 2023, penalty for failure to file your income tax return by the due date was $25.00/month. $150.00 maximum fee. 

NOLs:

• Prior year losses can be carried forward up to five years. 
• 100% of prior year losses can be used to make your income zero.
• Prior year losses can not be used to make current year losses larger.
• Tax years 2018-2022 losses were limited at a 50% deduction for five years. Read more here & access the Ohio worksheet here.

Board of Appeals: 753.18 Local Board of Tax Review; Appeal To Local Board Of Tax Review

• Any person that has been issued an assessment may appeal the assessment to the Board of Review by filing a request with the Board. 
  • The request must be in writing and specify the reason(s) why the assessment should be deemed incorrect or unlawful.
• The Local Board of Tax Review conducts hearings and makes determination to affirm, reverse or modify a Tax Administrator's assessment.
• Following an appeal to a Local Board of Review, a municipal income tax appeal may be made to either common pleas court or to the Ohio Board of Appeals.
  • This applies to tax years beginning in 2004.

Refunds:

• Refunds can be requested for tax overpayment or erroneous payments of more than $10.00.
• Refund requests must be filed within three years after the tax was due or paid, whichever is later. 
  • Failure to remit all documentation will cause delay in processing and/or disallowance of credits/losses.
  • If the tax is paid to a wrong municipality and the correct locality is pursuing the payment of the tax, that city must allow a nonrefundable credit for those taxes paid incorrectly, but not refundable to the taxpayer because of the statute of limitations. 
• Interest will be paid on any tax refund that is not issued within 90 days after the completed return is filed. 
• Taxpayers not required to file an annual Franklin Income Tax Return should use this form to request a refund. 
• Taxpayers required to file an annual return with the City should use line seven of the individual return to request a refund. 
• Taxpayer with accounts that are not in good standing will be denied their refund request. Your account may not be in good standing if:
  • There is a delinquent balance due.
  • The account has been sent to collections.
  • Prior year tax returns have not been filed.
  • Estimated tax payments are not current.

Uniform Definition of Taxable Income for Net Profits:
Net Profits for individuals are based upon amounts required to be reported on federal schedules C, E, or F. There is no provision in ORC Sec. 718 prohibiting the taxation of non-employee compensation (1099-MISC).