Q. Sidney's city website states that non-resident who works in Sidney also must file tax returns. It's contradicting to your statement. Can you elaborate on this?
A. It depends on the source of the non-resident's income. Here's the actual wording, for regular W-2 employees: "Non-residents who are employed within the City of Sidney, but whose Sidney City income tax is not fully withheld by their employer, must also file a return." You do not file a Sidney city tax return if your employer withheld the right amount (and they almost always do).
https://www.sidneyoh.com/Faq.aspx?QID=66
Q. Is the amount withheld for school tax also a city tax, too?
A. No.
Q. Upon checking back my w-2, I see that it shows taxes withheld for Piqua SD and Sidney City, but I don't see tax withheld for Piqua City. Why is there no Piqua city withholding.
A. You'll have to ask your employer for a firm answer. That said, I suspect your employer didn't want to bother with the extra effort to withhold other (than Sidney) city tax. In your case, Piqua's tax is 2% and Piqua will give you a 100% credit for the 1.75% you pay to Sidney. So, you will only owe a small amount when you file your Piqua city return (1/4 of 1%). It may not be enough to trigger an underpayment penalty.
