Who Must
File?
Crestline has a mandatory filing
ordinance - everyone over the age of 18 is required to file a tax return,
regardless of whether they have a taxable income. If the person is retired and
has no income other than retirement (no rentals, part time jobs, etc.) they need
to mark the box in the upper right hand corner of the tax form and record the
date they retired, sign and date the form. NO JOINT RETURNS ALLOWED.
Extensions
In order for Crestline to grant an
extension, a copy of Federal Extension request must be received by April 15th.
Filing an extension only extends time to file, NOT to pay. Penalty and
interest will still accrue on any balance due. If the first extension
expires and a second Federal extension is filed, we must receive a copy of this
second extension request by the expiration date of the first extension.
Supporting
Documents
Documentation is necessary to verify all
amounts of taxable income - Federal schedules, W-2's, 1099's are necessary or
tax return will be considered incomplete. A net loss may not be used to offset
other taxable income.
Due Date
Crestline Income Tax returns are due by
April 15th, or the following Monday if the 15th is on a weekend. If filed early and a payment is due, payment is due by this
date, or penalty and interest will accrue - $40 late charge for individuals,
$100 late charge for businesses, plus 1%/month penalty
and 1%/month interest.
Crestline's tax rate is 2%. A credit is allowed for up to 1-1/2% of taxes paid to another municipality. If there is more than one W-2, the 1-1/2% is figured on each W-2 amount.
Examples of Taxable Income:
Wages, salaries and other compensation
Bonuses, stipends and tip income
Commissions, fees and other earned income
Sick pay (including third party sick pay)
Employer SUB pay
Strike pay
Vacation pay
Any pre-tax contributions to retirement plans, tax deferred annuities.
Income from wage continuation plans (including retirement incentive plans & severance pay)
Income from Jury Duty
Income from partnerships, estates or trusts
Net profits of businesses, professions, sole proprietorships, etc.
Rental income
Farm net income
Lottery winnings in excess of $10,000.00
Examples of Non-Taxable Income:
Earnings of a person under age 18 or earnings of part-year resident college student earned while living at out-of-town college
Interest or dividend income
Welfare benefits
Social Security
Income from qualified pension plans
State unemployment benefits
Worker's Compensation
Proceeds of life insurance
Alimony, child support
Active duty military pay
Lottery winnings less than $10,000.00, prizes, gifts
Annuity distributions
Insurance proceeds derived from property damage or personal injury settlements
Income from election day poll work under $500
Capital gains
Cafeteria plans