When is the Carlisle Tax Office Open?
The Income Tax Division is open from 8:00 AM to Noon and 1:00 to 4:30 P.M., Monday through Friday, except holidays.
What is the Carlisle income tax rate & who does the income tax apply to?
The Carlisle income tax rate is currently 1.5%. The tax is applicable to all residents of the Village, as well as all non-residents working within the Village. The tax also applies to all businesses that are either located in, or performing services in, the Village. The tax rate is levied upon all gross wages, salaries and other compensation, and all other business net profits.
Who is required to file Carlisle income tax returns?
All Carlisle residents 18 years of age and older are required to file an income tax return annually, even if no income is earned, or no tax is due. Non-resident individuals, sole proprietorships, partnerships, limited partnerships, limited liability companies, limited liability partnerships, associations, corporations, and S corporations that own rental properties, conduct business, perform services, solicit sales, operate or maintain an office in Carlisle must file, even if no tax is due.
What schedules or supporting documents should I attach to my return?
All W2's and a copy of page 1 of the Federal 1040 and schedule 1 if applicable must be attached to the Carlisle return. Any Federal schedules or forms containing any information that relates to the information on the Village return should be attached. Examples: W-2, Schedule C, Schedule E, Schedule F, Schedule K, Schedule K-1, Form W2-G, Form 1099-MISC, Form 1065, Form 1120.
Are retired persons required to pay city tax?
Retirees are not required to pay city income tax on their income from Social Security or income from federally qualified retirement plans. However, retirees are subject to the tax if they have any other types of earned income. There is no age limit, per the Ohio Revised Code, for paying municipal taxes on otherwise taxable earned income. Permanently retired or permanently disabled persons with no source of taxable income may apply for a permanent exemption from the mandatory filing requirement. Persons wishing to apply must fill out the "Declaration of Exemption" form available on the web site or in the office, and they must submit the supporting documentation proof in order for the application to be approved. Persons still wishing to filed the annual return can check the box located under the printed taxpayer name and address near the top of the form, sign, and return the form to the Carlisle tax office by the filing deadline.
Are students exempt from the tax?
No, being a student has no effect on your city tax liability. All residents of Carlisle, regardless of their age, are required to pay city income tax. However, only residents who are 18 years of age or older are required to annual file a Carlisle local tax return.
Why doesn’t the city tax interest income?
Per the Ohio Revised Code, municipalities in Ohio are prevented from taxing most types of intangible income including interest, dividends and capital gains.
If I have W-2 income & a schedule, can I use a schedule loss against my W-2 wages?
No, Carlisle does not allow schedule losses to offset W-2 wages. However, such registered net operating losses will be kept on file for no more than three taxable years and may be used to offset future schedule net income.
I have a rental property that shows a loss each year after expenses.
Should I include that in my return?
Should I include that in my return?
Yes, anyone having a rental property located in Carlisle is required to file a return and include a copy of their Schedule E or applicable schedule of income and expenses for the rental. A return is required each year even though losses may have been incurred. Also, any Carlisle residents having rental properties are required to file on those properties no matter where the properties are located.
My W-2 has differing amounts in the federal income box, the local income box &
the medicare box. Which amount should I show as taxable wages for my city income tax return?
the medicare box. Which amount should I show as taxable wages for my city income tax return?
Beginning in 2004, the Ohio Revised Code states that qualifying wages are the taxable wages for the City. Qualifying wages are typically Medicare wages (Box 5 on the W-2). Because of various federal deferral programs available, taxable wages may not always be the same for federal tax purposes, Medicare purposes, and city tax purposes.Taxable gross wages, for city purposes, is any income not expressly excluded by the Carlisle Income Tax Ordinance and includes any income earned, received, accrued or in any other way set apart unto Carlisle residents or unto any non-residents performing services in Carlisle.
I live in Carlisle but work in another city and have tax withheld for that city.
Do I get credit for that against my Carlisle tax liability?
Do I get credit for that against my Carlisle tax liability?
Yes, credit is allowed for taxes paid to another city. The allowable credit is limited to 1.5% of the wages taxed by the other city.
When are tax returns due?
Individuals and calendar-year entities are required to file by April 15th. Fiscal-year entities are required to file within four months from the end of the fiscal year.
How soon can I expect my refund?
Refunds will be issued within 90 days of receipt of the completed tax return with all necessary documents attached. A refund request is not considered complete and will not be processed unless it has all the supporting documents attached. A refund of less than $10.01 (state mandated) will not be made.
My company will not withhold Carlisle income taxes. What can I do?
If your company is located in a township or a municipality with a lower tax rate, you can ask your company to withhold income tax for Carlisle. However, the law does not require this “courtesy” withholding. If the company does not withhold for Carlisle, you will need to make estimated tax payments to Carlisle. Quarterly estimated payments are due on April 15th, June 15th, September 15th, and December 15th.
What are the penalties if I don’t file?
Interest will be charged monthly on all past due taxes. The monthly interest rate is determined by adding 5% to the Federal short-term rate as defined in Ohio Revised Code 5703.47. Failure to file a final return on the specified filing date will be assessed a penalty of $25 per month ($150.00 max) regardless of the tax liability. Failure to pay taxes due will also be subject to a penalty of 15% of the tax due.
If my tax preparer filed my tax returns electronically for me last year,
why did I receive a letter stating that I had not filed with Carlisle?
why did I receive a letter stating that I had not filed with Carlisle?
While federal and state income tax returns accept electronic filings, Carlisle is unable to do so at this time. Residents must mail their Carlisle tax return or bring in their W2s along with a copy of pages 1 & 2 and and applicable schedules from the Federal 1040 and we will prepare the Carlisle tax return at no charge.
I work in Dayton and pay Dayton taxes. My spouse works in a township & doesn’t have any tax withheld. If Dayton’s tax rate is 2.25% why can’t we take credit for all of the 2.25% and offset my spouse’s tax liability to Carlisle?
Each city retains the taxes it collects through withholding. As a courtesy, Carlisle, like most other cities, allows credit for taxes paid to another city, up to its own tax rate. The credit allowed is calculated by multiplying the wages taxed by another city by 1.5% (unless the other city’s rate is lower, then it is the actual tax withheld).
If I file an extension request, why am I charged a penalty and interest when I file and pay by the extended date?
An extension only extends the time you have to file your tax return. It DOES NOT extend the time you have to pay your tax liability. If you have a tax liability, that amount should be paid with the extension request, which must be filed on or before the tax deadline.
I moved to (or out of) Carlisle during the year.
How do I calculate my tax liability?
How do I calculate my tax liability?
The easiest way to calculate your tax liability is to prorate your wages (total wages for the year divided by 12, multiplied by the number of months you lived in Carlisle). If you had local tax withheld, it must be prorated in the same manner.
What types of income are taxable & should be reported on
the Carlisle income tax return?
the Carlisle income tax return?
The following taxable incomes should be reported:
- Wages, salaries and other compensation
- Bonuses, stipends, and tip income
- Commissions, fees and other earned income
- Sick pay (if reported as qualifying wages - excluding third party sick pay)
- Employer supplemental unemployment benefits (SUB pay)
- Strike pay
- Vacation pay
- Employee contributions to retirement plans & tax deferred annuity plans (including Sec. 401k, 403b, 457b, etc.)
- Profit sharing
- Contributions made on behalf of employees to tax deferred annuity programs
- Reimbursements in excess of deductible expenses
- Employee contributions to costs of fringe benefits
- Employer provided educational assistance, and/or reimbursement (taxable to the same extent as for federal taxation)
- Royalties, if not derived from intangible property
- Stock Options (taxed when exercised, valued at market price less option price on the date the option is exercised)
- Employer paid premiums for group term life insurance (taxed to the same extent as for federal taxation)
- Compensation paid in goods or services or property usage (taxed at fair market value)
- Excess employee discounts
- Income from wage continuation plans (including retirement incentive plans, severance pay and golden parachute payments)
- Income from guaranteed annual wage contracts
- Prizes and gifts if connected with employment
- Director fees
- Income from jury duty
- Executor fees
- Union steward fees
- Income from partnerships, estates or trusts
- Net profits of businesses, professions, sole proprietorships, etc.
- Net rental income
- Farm net income
- Ordinary gains as reported on Federal Form 4797
- Disability pay if received as a benefit of employment (includes third party plans)
- Income received as a result of a covenant not to compete
- Gambling winnings (no deduction for gambling losses)
What types of income are non-taxable & should not be reported on
the Carlisle income tax return?
the Carlisle income tax return?
The following incomes are non-taxable:
- Interest income
- Welfare benefits
- Social Security
- Income from federally qualified pension plans
- State unemployment benefits
- Worker’s compensation
- Proceeds of life insurance
- Third party sick pay
- Alimony
- Active duty military pay (including National Guard when on active duty)
- Earnings of persons under 18 years of age
- Capital gains