The City of Cambridge has a mandatory tax-filing requirement for all residents and business of the City. The tax rate is 2% effective January 1, 2010. Tax returns and withholding filed before 2010 will be taxed at 1.5%.
Who must file a tax return? Mandatory filing for all Cambridge residents over 18, living in the city at any time during the year, (Individuals and businesses). Residents who are permanently disabled and whose sole income is derived from nontaxable income do not have to file a return but must register one time. All new residents must fill out a registration form to determine your tax status. FAILURE TO FILE WILL RESULT IN OUR CONSIDERING YOUR ACCOUNT DELINQUENT.
When to file: Declarations of estimated income for the current year, payable quarterly, plus the annual return for the preceding taxable year are due by April 15th of each year from individuals and businesses. Due dates for fiscal year taxpayers will be 120 days from the date of the year-end. Returns filed or postmarked after April 15th or 120 days after year-end, will be assessed a $ 25.00 or 12% of tax due penalty charge. Returns filed or postmarked after April 15th, or 120 days after year-end, with no tax due will have a $ 25.00 late filing fee assessed.
Residents of the City of Cambridge, regardless of age, who receive taxable income as shown below for work done or services performed or rendered from all sources of income received inside and outside the city.
Residents having rental property located in or outside of the City of Cambridge. The tax is figured on the net income as reported on the Federal tax return.
Non-residents of the City of Cambridge who receive salaries, wages, commissions and other income received for work done or services performed or rendered within the City of Cambridge whose employer did not withhold the Cambridge tax.
Non-residents having rental property situated within the City of Cambridge. However, the tax is figured on the net income as reported on the Federal tax return.
Taxpayers shall not be permitted to offset any losses derived from business or rentals against any wage or payroll earnings. However, business or rental losses can offset against one another.
A credit is allowed to Cambridge residents for the income tax paid to another municipality, limited to the amount of tax that would have been paid to the City of Cambridge. (Credit is not to exceed current Cambridge tax rate)
Non-resident employers (contractors, etc.) – Who are doing business within the City of Cambridge are required to deduct from all salaries, wages, commissions or other compensation the tax of 2% on the gross amount earned in the City of Cambridge.
Every employer, resident or non-resident, who is required to deduct and withhold the tax at the source is liable directly to the municipality for payment of such tax whether actually collected from its employees or not.
Payment of tax withheld from employees – 1st quarter due April 30th, 2nd quarter due July 31st, 3rd quarter due October 31st, and the 4th quarter return and payment are due by January 31st. The annual reconciliation and W2's and 1099's are due by February 28th.
Adjustments to income – The only federal adjustment allowed against income is the employee business expense (form 2106) and one-half of the self-employment tax paid. A $ 2,000.00 deduction is allowed against income of persons age 65 and over. The date of birth of the taxpayer taking the deduction must be provided.
Extensions of time – REQUESTS FOR EXTENSIONS MUST BE RECEIVED BY THE DUE DATE OF THE ANNUAL RETURN. THIS OFFICE MUST RECEIVE A COPY OF THE FEDERAL EXTENSION OR A WRITTEN EXTENSION REQUEST BY THE DUE DATE. THE EXTENSION WILL NOT BE GRANTED FOR A PERIOD OF MORE THAN SIX MONTHS, OR THIRTY DAYS BEYOND THE FEDERAL EXTENSION. THE EXTENSION WILL NOT BE GRANTED IF IT IS NOT RECEIVED BY THE DUE DATE OF THE ANNUAL RETURN AND A LATE FILING PENALTY WILL BE ASSESSED.
Where to file –
City of Cambridge
Income Tax Department
1131 Steubenville Avenue
Cambridge, Ohio 43725
Make checks payable to: The City of Cambridge
All tax forms are available here.
Click here to contact the income tax department.
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