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Frequently asked tax questions

Income Tax
Who’s required to file a Brunswick return?

Any person 18 years or older who resides in the City of Brunswick is required to file a return, regardless to income. Also, any person who owns a business and/or rental property.

* Exception is for any person who has submitted proof of retirement to the Tax Department and has no other taxable income.

What is the City of Brunswick’s Income Tax rate?

Effective January 1, 2010, Brunswick’s tax rate increased from 1.35% to 1.85% and is based on taxable income and business net profits.

What is taxable income?

Earned income such as salaries, wages, commissions, wage continuation plans, deferred compensation, sick pay, vacation pay, tips, distributive shares of the net profits of a partnership or subchapter S corporation, net profit from a business, net rental income, and income from lotteries and games of chance.

What income is not taxable?

Income such as dividends, interest, military pay, pensions, alimony, child support, Social Security, Medicare, poor relief, unemployment insurance benefits if received from state or local governments, gifts, inheritances, scholarships, or involuntary conversions.

Does Brunswick give a credit?

Yes, effective January 1, 2010, Brunswick’s tax credit changed from ¾ of 1% to 1%.

This credit is given to residents who paid municipal income taxes to other municipalities. This amount can not exceed 1% of their taxed earnings.

Can I get an extension to file?

An extension will be granted by submitting a copy of Federal Extension Form (4868 or 7004) by April 15, so long as payment of at least as much as was due the previous year has been paid by the normal due date for the annual return.

Are estimated payments required?

Estimated payments are not required in Brunswick; however, a declaration of estimated income tax may be filed by all individuals who can reasonably expect to owe Brunswick income tax at year’s end. Estimated payments can be made on a quarterly basis as follows: one-fourth (1/4) on or by April 15, June 15, September 15, December 15.

Is it possible to amend my estimate during the year?

Yes. Just notify us of your intentions.

What if I reside in Brunswick and work in an area with no municipal tax?

You can estimate the amount of tax you will owe for the year and pay in accordance with the estimate listed above or you can pay a lump-sum on or before April 15th of the filing year.

What if I already have local taxes taken out of my check?

Remember there are two local taxes, residence and workplace.

If the local tax was withheld for the City of Brunswick, a 100% credit of that amount will be given. If the local tax was withheld for another municipality, then the 1% credit of the wages earned will be given (as long as the total tax rate for the city it was earned in was withheld).

When are penalty and interest assessed?

Please refer to the income tax return instructions for the tax year you are filing.

Q

The top 10 mistakes people make in filing a tax return:

 

Failure to sign return.

Failure to attach check.

Failure to advise Tax Department of address changes, divorces, marriages or retirement.

Failure to file return for the year taxpayer moves in or out.

Failure to report gaming/lottery winnings.

Failure to mail return.

Failure to attach schedules/forms and statements.

Failure to attach W-2.

Failure to calculate credit properly.

Failure to use gross compensation.