WHO MUST
FILE
All Lebanon residents must file a tax return annually whether or
not taxes are owed. All businesses within the city limits must file
a return, whether or not a profit was made. All nonresident businesses
and individuals who have sales, work done, services performed or
rental property within the city limits must file a return, whether
or not a profit was made. There is no minimum age requirement for
filing on earned income.
WHEN TO FILE
Individuals must file no later than April 15th of each year and
businesses must file no later than four months after the calendar
or fiscal year end.
EXTENSIONS
Extensions which are approved by the Internal Revenue Service (IRS)
will be accepted by the Lebanon Tax Department as long as a copy
of the extension is sent to the Lebanon Tax Department on or before
the due date. The extension due date will be 30 days beyond the
extension date granted by the IRS. We also may accept requests for
extensions from accountants and tax preparers. Please keep in mind
that an extension extends the time to file only, it is not an extension
to pay.
TAXABLE INCOME
All gross wages, salaries, commissions and other compensation paid
by an employer or employers before deductions, and/or the net profit
from the operation of a business, profession or other enterprise
or activity are taxable to Lebanon. Sick pay, vacation pay, dismissal
or severance pay are also taxable.
NON-TAXABLE INCOME
Interest, dividends, pension distributions, social security distributions,
active military pay, alimony received, child support received or
state unemployment benefits are not taxable.
CREDITS
Credit will be given for taxes paid to another municipality, not
to exceed Lebanon's tax rate of 1%. Example: Wages of $10,000.00,
tax paid (see W2) $210.00-paid to Cincinnati 2.1% = $100.00 Lebanon
credit.
DECLARATION OF ESTIMATED
TAXES
A declaration must be filed by all individual and business entities
who can reasonably expect to owe Lebanon Income Tax at year end.
The declaration and first quarterly payment are due by April 15th
(or four months after the start of the fiscal year). The remaining
quarterly payments are due on July 15, October 15 and January 15
for calendar year taxpayers.
INTEREST AND PENALTIES
Taxpayers failing to pay the full amount of tax due shall incur
a penalty of the higher of (a) five dollars ($5.00) or, (b) one
per cent (1%) per month, and a one-half percent (1/2%) , interest
of the unpaid tax. Penalty and interest occur monthly to the unpaid
tax balance.
BUSINESS WITHHOLDINGS
Each employer within or doing business within Lebanon shall deduct,
at the time of the payment of salaries, wages, commissions or other
compensation, the tax of one percent (1%) on the gross amount due
by the employer. All taxes withheld are to be filed and paid to
the Lebanon Tax Office. Withholding payments are due on the 15th
of the month following the close of each preceding month or quarter.
Annual withholding reconciliation's are due from each employer filing
withholdings on or before April 15th of each year, along with copies
of the W-2's or a report listing all the information contained in
the W-2.
If you have any questions or need assistance with
your city taxes, please call the Lebanon Tax office at 228-3121.
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