Memo to Tax Preparers
The City of Monroe has a 2% Income Tax which applies to all who live, work, or operate a business within the City of Monroe. All employers located in or doing business within the City of Monroe are responsible for withholding the tax of 2% on the qualifying wages of their employees and remitting the withheld tax on a monthly or quarterly basis to the City of Monroe. All non-residents with income taxable to the City of Monroe that was not fully withheld by an employer are required to file a Monroe tax return.
Filing an Income Tax Return
All City of Monroe residents are subject to this tax and are required to register with the Tax Department and to file an annual Monroe income tax return. The filing due date for individuals is on or before April 15. The returns are calculated based on qualifying wages, commissions, compensation and other taxable income earned or received by a resident or by a non-resident for work done, services performed or rendered in the City. Taxable income also includes gambling winnings, rents from property and/or any other profit from businesses. Social security, pensions, interest and dividends are not taxable. Credit for taxes withheld/paid to other municipalities is available to residents of the City of Monroe and is limited to 2% of the amount of income on which tax was withheld/paid. No credit is given for county taxes paid.
Businesses in Monroe
All entities operating a business within or doing business within the City of Monroe must file an annual Monroe income tax return on net profits/losses. The filing due date for businesses is on or before April 15 or on or before the 15th of the fourth month following the end of the fiscal year.
An extension for filing the annual Monroe income tax return may be requested by any business or individual by submitting a written request or providing a copy of the Federal extension to the Tax Department prior to the due date of the return. However, the extensions, if granted, for filing the annual Monroe income tax return does not extend the date for payment of the tax. Penalty and interest are assessed for late filing and payment.
Declaration of Estimated Tax
Additionally, per the Monroe Income Tax Ordinance and provided for on the annual Monroe income tax return, there is a declaration of estimated tax to be filed by every taxpayer who may reasonably expect to have taxable income, if the tax on this income is not or will not be withheld by an employer or employers. A taxpayer's final income tax return for the preceding year may be used as the basis for computing the declaration of estimated tax for the current year. The estimates are due April 15th, June 15th, September 15th, and January 15th of the following year.