General Instructions and FAQs


 

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.

 

All returns filed or paid after April 15th are subject to forfeit the credit given paid to other municipalities. The credit will not be given if there are previous taxes owed. The full 2% will be owed at that time.


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

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