@bcrouch150-gmail said "I didn’t file any city taxes for the 2020 tax year since I lived in township though my work city tax was still withheld."
That is correct. You are only required to file a city return in the city you live in, if that city has an income tax.
You are not required to file in the city you work in, unless they failed to withhold the proper amount. Your employer is responsible for withholding the correct amount and remitting the tax to the work city.
Q. How will my 2021 city taxes work?
A. You will file a Hamilton city tax return, indicating that your were a part year resident. You will only pay tax on the wages you received while you were a Hamilton resident. Hamilton allows a credit (up to 2%) for tax paid (on the same income) to the work location city. Even if you owe Hamilton nothing, you are still required to file a Hamilton return.
Q. I moved to a city with 2% income tax. My job collects 1% (apparently for the work city). Do I file with the new city and will I owe?
A. Yes, you file and you will owe. Hamilton allows a credit for the 1% paid to the work city, but you will owe the other 1%. Going forward, ask your employer if they able to withhold for Hamilton (another 1%, not the full 2%), as well as the work city. You may have to make estimated payments to Hamilton.
Hamilton is a CCA (Central Collection Agency) member, so TurboTax can prepare a city return. It has to be mailed. It cannot be e-filed.
