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most likely you'll have to pay that bill. states with income taxes tax their residents on all income and non-residents on income earned in the state. the same applies to cities if they have an income tax. you could also owe income taxes to the city where you worked if it had an income tax but then your city would give you some amount of credit for the tax you pay to the non-resident city to avoid full double-taxation of the same income.
if you post the city in this thread we may be able to provide more information
here's a link to Turbotax Audit Support and Audit Defense but they probably can't help you.
The Audit Defense service is provided by TaxResources, Inc., also called TaxAudit.com, in partnership with TurboTax. If you paid for Audit Defense and you received a notice, call TaxResources, Inc. at 877-829-9695, or report your notice on their web site at http://intuit.taxaudit.com/.
if you bought Audit Defense
I AM BEING AUDITED
If you purchased Audit Defense:
https://ttlc.intuit.com/questions/2924451-i-bought-max-or-audit-defense-and-now-i-m-being-audited
It would have been helpful if you would have mentioned what city you are talking about since we cannot see any of your information. If you are in OH there are a hundreds of cities and towns that have income taxes and you do have to pay if you live there, even if tax is also taken out of your pay for working in a different OH town. But you get credit for the tax that was paid to the other town when you prepare the return for the town you live in.
TurboTax can only prepare city returns for a few cities, for most city returns you are on your own. And...for certain towns it is easier to do it on your own even if it can be done using TT.
City Tax Returns
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