I have received SECOND Tax Audit Notice from CITY OF COLUMBUS - INCOME TAX DIVISION for Tax Year 2012 and 2013.
In the notice, it has mentioned "NO CITY TAXES WERE PAID OR WITHHELD ON YOUR 2012 THROUGH 2013 WAGES FROM Organization XXX".
My Organization said it is my responsibility and refuse to pay close $4K amount.
Please suggest urgently.
Turbotax (TT) can't help you with that. As previously stated, you need to contact the city.
The simple facts are:
1. if you are a Columbus resident, you are liable for Columbus City income tax on all your earned income (wages & self employment). Rental income from property in Columbus is also subject to city tax.
2. If your place of employment is also in Columbus, your employer is responsible for withholding Columbus income tax*. If they are located somewhere else, they are not required to withhold Columbus tax; only tax for their city. Whether they withhold or not; you, not the "organization" are responsible for the tax.
3. If you had withholding for some other city , Columbus will give you a credit for what you paid the other city, but not withholding for a school district.
4. Even if the other city withheld the exact amount you owe Columbus (not likely), you still have to file a Columbus return
5. Although TT can prepare City tax returns, for most Ohio cities, the preparation of the forms is not automatic. You needed to initiate the prep within the Ohio program**. City returns can not be e-filed from TT. They have to be printed and mailed. If you do not have a city return on your list of Ohio form, you did not do one.
*If you are a contract employee (no W-2), your "employer" is not responsible for withholding , you are.
**Columbus will accept CCA forms. In the Ohio program, you will reach a screen titled "A few things before we wrap up your state taxes" (Other tax Situations at the Summary Screen). Scroll down to Ohio City Taxes. Press Start or revisit. On the next page select City tax forms. You cannot e-file, but will have to print & mail.