topic My state refund says I owe even though state taxes were withheld correctly, but local taxes were not withheld by my employer correctly. Will that total go to local? in State tax filing

My state refund says I owe even though state taxes were withheld correctly, but local taxes were not withheld by my employer correctly. Will that total go to local?

rachellekt — Mon, 23 Feb 2026 09:37:06 GMT

To elaborate, due to a switch in tax companies my employer made early in the year, they failed to withhold my taxes at the local level for 11 months. As a result, my state refund says I will owe an amount close to what I would owe at the local level, however my state taxes were withheld correctly so I assume the amount is for my local taxes, and that if I pay that money it will go to the local level correctly.

Is this safe to assume?

Re: My state refund says I owe even though state taxes were withheld correctly, but local taxes were not withheld by my employer correctly. Will that total go to local?

xmasbaby0 — Tue, 31 Jan 2023 17:25:02 GMT

No----do not assume that.

City Tax Returns

TurboTax only prepares a few city or local tax returns as an extra step in your state return. For most local tax returns you are on your own. Your only record of paying your local tax will be your own bank/credit card records

https://ttlc.intuit.com/questions/1899325-which-city-tax-returns-can-i-do-in-the-turbotax-state-program

Re: My state refund says I owe even though state taxes were withheld correctly, but local taxes were not withheld by my employer correctly. Will that total go to local?

rachellekt — Tue, 31 Jan 2023 17:34:32 GMT

Okay thank you! I'm just confused as to why I owe such a large amount to the state when the state was withheld correctly, and the amount owed matches local taxes.

Re: My state refund says I owe even though state taxes were withheld correctly, but local taxes were not withheld by my employer correctly. Will that total go to local?

Hal_Al — Tue, 31 Jan 2023 17:53:57 GMT

You need to identify the state and the locality (city, county, school district etc). Rules vary greatly. But, the usual rule is local and state don't interact.