Have a Tax Question? Ask a Tax Expert
Hi Josh. My name is ***** ***** I will be happy to help you.
The cities have very limited powers when it comes to collection. They will keep sending you threatening letters but there's not much they can do. They cannot put a lien on your property, garnish your refunds (state or federal) or your wages. They would need a court order/lawyer to do so and this would could cost them more than what you actually owe. However, if they catch you in their county (a routine traffic stop) you may end up in jail. For instance in Cuyahoga county (Cleveland), if you owe local taxes you will not be able register a car or renew your drivers license.
They may or may not, depending on how desperate they are. But I have not seen a city putting a lien on a real property so far and I lived in OH for 10 years (Cleveland/Medina).
Ok. First, is their claim correct? Did you file the city return? Often, if you file the missing returns you will find out that you owe much less than they claim you do.
It looks like Toledo has its own tax department and is not part of CCA (central collection agency) or RITA (Regional tax agency) so they may be opened to negotiation. CCA and RITA is tough to negotiate with.
Definitely prepare the return and take it with you. You may not owe anything since Toledo gives you credit for taxes paid to other cities, but you have to claim the credit. If the city calculate your taxes for you, you will not get the credit.
To prepare the missing returns you will need the W2s and you will find the forms here: http://toledo.oh.gov/services/finance/taxation-and-treasury/tax-forms-information/
But I would suggest to go or call the toledo HRBlock office. You can communicate with them through a virtual office. They usually charge between $15 - 20 for local return.
Ok. Were you a resident of Toledo while working in Michigan? If taxes were taken out it would show up on your W2, boxes 18, 19 and 20.
Ok. If you were not a resident of Toledo while you earned the income, you will file as nonresident (part year resident for 2013) and exclude all income earned while resident of Michigan and you should not be paying tax on that income. Where your wife was living, does not matter.
You will probably need to provide some type of proof that you lived somewhere else; utility bill with your name, rental agreement and such.
Yes, it will. If nothing else, even a credit card bill, cellphone or if you have MI address on your W2 would work.
I would sent one with the notice from the city if you received any, if not just file a copy with the lawyers (they are really just court clerks) and bring one to the hearing if it is not solved by then. If you did not live in Toledo in 2014 you should not owe any taxes for that year. For 2013 you will only claim income you earned while residing in Toledo.