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
