No, you do not file tax forms for both places, but you do have to pay income tax to both. You do not have to file a tax return for the city of Ashland, because you do not live there. It is not
necessary to file one in the city you work in, if different from where you live. Your employer will
remit withholding* to the city you work in, but you do not file a return unless
you're claiming a refund or your employer didn't
withhold enough ( both highly unusual).
You do file an income tax return for the School District (Cloverleaf) you live in. You do NOT get a credit for what you paid Ashland on your School District Income Tax (SDIT) return. If you lived in a CITY with an income tax, you would get a credit for what you paid the work city. But School Districts (SD) do not allow any credits for taxes paid to either a city or even another SD.
Ashland is correct, they get to withhold tax on all your wages. If your employer failed to withhold enough; you must now file an Ashland return to make up the short fall. They are wrong about only partial paying Cloverleaf. You are, in deed, double tax on your income. So, Cloverleaf is correct, you need to file an SDIT return, and pay SDIT on all your earned income..
TurboTax (TT) does not
automatically prepare a School District
return, you must initiate it.
At the
screen, in the Ohio program,
titled "A few things before we wrap up your state taxes"
scroll down
to School District taxes.
Or later at the screen "Your
2016 Ohio Taxes are ready for us to check"
-Click Other situations
-Scroll down to School District taxes.
You will reach a screen
that gives you the choice to include or exclude the SD return. If you file you e-file your state return, the SD return is usually e-file at the same time. Read the 'filing
instructions" that TurboTax prepares, They will tell you if the SD100 was
e-filed or if you have to mail it.
*If you are self employed or a contract employee, your "employer" is not required to withhold city tax. In that case, you would have to file an Ashland return.
