FREQUENTLY ASKED INCOME TAX QUESTIONS

I DID NOT LIVE IN CARLISLE FOR THE ENTIRE TAX YEAR.  AM I STILL REQUIRED TO FILE A RETURN?

If you lived in Carlisle for more than one month, you are required to file a return.  You should prorate your income and credits to reflect only the income earned while living in Carlisle and indicate on the return when you moved in/out of Carlisle.  PLEASE CONTACT THE TAX OFFICE IF YOU BELIEVE THAT YOU ARE NOT REQUIRED TO FILE A RETURN.

I DID NOT EARN ANY TAXABLE INCOME FOR THE TAX FILING YEAR.  AM I STILL REQUIRED TO FILE A RETURN?

According to the Tax Ordinance, all residents of Carlisle must file a yearly tax return.  If you are fully retired with no taxable income, place an “X” in the box below your name and address on the return.  If you were on disability or unemployment, indicate the type of financial support on line 1, sign the return, and submit to our office prior by April 16th.  PLEASE CONTACT THE TAX OFFICE IF YOU BELIEVE THAT YOU ARE NOT REQUIRED TO FILE A RETURN.

WHICH AMOUNT DO I USE FOR CITY WAGES?

Respectfully, city taxes are based on Medicare Wages and should be reflected in Box 5 on your W-2 form.  This is not always the case. Some W-2 forms show these wages in box 18 or 19.  The highest one of these amounts should be listed as your city wages.  Usually, local wages are shown in Box 19 with local tax credits in Box 20.  If you have 1099-MISC earnings, you should include the 1099-MISC gross earnings on line 1 of the form.  Remember to include copies of all W-2 and 1099-MISC forms with the return.

I HAVE MY OWN BUSINESS BUT AM NOT SHOWING A NET PROFIT FOR THE TAX YEAR.  DO I STILL NEED TO FILE?

Yes.  You should complete the backside of the return and attached the appropriate Federal Schedules (Schedule E for rental income, Schedule C for business income, etc.).  Indicate the total net loss or profit for all non-wage income on line 2 of the return.  Certain operating losses will be carried forward for a period of 3 years.  Business losses may only offset other business income.  Such loss cannot be used to offset earned wage income.

I NEED AN EXTENSION TO FILE MY CITY TAX.  WHAT SHOULD I DO?

Your tax is still due by April 16^th in order to avoid interest and penalty charges.  However, you may request an extension for filing the final return.  If you have filed for a Federal extension, you may submit a copy of the Federal form along with estimated tax payment to our office by April 16^th.  If you are not filing an extension with the Internal Revenue Service, a written request can be submitted in place of the Federal extension form.  All extension requests must be filed by April 16^th or the request may not be honored.

I WORK IN A CITY WITH A HIGHER TAX RATE THAN CARLISLE.  HOW DO I OBTAIN A REFUND?

City taxes are first paid to the city in which you work and secondary to the city in which you live.  Carlisle will give you credit up to 1.5% for taxes paid to any city in which you worked.  Carlisle does not receive any of the money you paid to other cities.  Therefore, we cannot give a refund of this money.  If you believe that you have overpaid taxes to the city in which you worked, you must contact that city’s tax office for refund information.  USE THE WORKSHEET ON PAGE 2 FOR ASSISTANCE IN DETERMINING ALLOWABLE TAX CREDIT TO CARLISLE.

I WORKED AT TWO DIFFERENT COMPANIES.  ONE PAID CITY TAXES AT A HIGHER RATE THAN CARLISLE AND ONE AT A LOWER RATE THAN CARLISLE.  CAN I USE THE HIGHER WITHHOLDING TO COVER THE LOWER ONE?

No, each W-2 stands alone.

I STILL DON’T THINK THAT I NEED TO FILE A CARLISLE TAX RETURN.  SHOULD I JUST IGNORE?

No.  If you received a Carlisle tax return, then our records indicate that you are required to file.  You should contact our office so that we may update our records and avoid possible penalties and prosecution.

I NEED HELP TO COMPLETE THE RETURN.  CAN THE TAX OFFICE HELP ME FILL IT OUT?

Yes.  You may contact the Carlisle Income Tax office at (937) 746-0556 or stop by for assistance in completing the return.  Our office hours are 8:00 am to 4:30 pm Monday through Friday.