Yes, you have to file a RITA return for Shaker Hts. Any Ohio city, with an
income tax, is allowed to have withholding taken out of your pay while you
worked in that city (Cleveland in your case). Your employer is required to do that withholding. If
you live in a city with an income tax, you are subject to that city's tax as
well (Shaker Hts, in your case). The city you live in will usually allow a credit
or partial credit for the withheld tax you paid to the work location city. Shaker Hts only allows a 1% credit, so you will be owing for both years.
You normally only have to
file a return in the city you live in. It is not necessary to file one in the
city you work in.
