No income tax for work city, but local taxes for city I live in is being taken

Forum|Forum|3 years ago
November 10, 2022
2 replies
24 views

The company I work for moved from a city with income tax to a city with no income tax. The first check I received while working at the new city didn't take out taxes for the area I worked, but now my employer is taking out taxes for where I live. They never did this in our old location. I'm wondering are they allowed to make this decision for you without saying anything about it?

Not A Product Question

Mike9241

Level 15

sure if it's city law. like for states, income earned can be taxed where you work and where your primary residence is. with states you get credit in the state you reside if you also pay taxes on the same income where you work.

Mike9241

Hal_Al

Level 15

Yes. By doing so, they are probably saving you from an underpayment penalty.

Your residence city probably gives you a credit, or partial credit, for tax paid to the work location city. So, prior to the move, it was only neccessary for your employer to withhold for the work city.