topic Re: ? in State tax filing

Courtesy Withholding?

andreapgn445 — Mon, 06 Mar 2023 17:19:58 GMT

I wanted to ask what is courtesy withholding. I read that it is for when you work but live in different cities in the same State. But I don't know if courtesy withholding can be applied by an employer when you work but live in different States.

If anyone could help me with this question it would be greatly appreciated.

Re: ?

Mike9241 — Mon, 06 Mar 2023 17:34:50 GMT

I would think any state/local withholding should show up on your W-2. if not there's no way to claim it. An employer is not required to do this

If an employee resides in one city and works in another, they may be required to pay local taxes for both cities. Courtesy withholding is an optional benefit where employers collect local income tax for employees who live in another city. Through courtesy withholding, employees don’t need to pay local taxes separately, as the employer deducts these amounts and pays them on the employee’s behalf.

If the employee lives in a different state, the employer can also do courtesy withholding for state income taxes.

check with your employer for what there policies and procedures are.

Re: Courtesy Withholding?

Cynthiad66 — Mon, 06 Mar 2023 17:46:35 GMT

Courtesy withholding is an optional benefit where employers collect local income tax for employees who live in another city. Through courtesy withholding, employees don't need to pay local taxes separately, as the employer deducts these amounts and pays them on the employee's behalf.

It is probably not called Courtesy Withholding when you work and live in another state, but it is often done. You can request that your employer withhold from either state. Most companies agree to withhold in either state but you will need to check with HR to make the change.

Because of various state agreements, you may also be required to file a state tax return where your employer is located or any state where you have a source of income.