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City Tax

I am a home health aide in Ohio. I work in one city where my clients are, and also where I reside in, and the office that my job is based out if is in another city, over an hour away. I never go to this office except for once a year to update my paperwork, fingerprints, CPR certification, etc. Other than that my timesheets are faxed every week and I dont go there ever. Obviously I pay Ohio state tax, but I was looking at my paystub and I'm paying taxes for both cities. Is this correct? Im just not super familiar with the city tax laws in Ohio, and couldn't find anything about this question in particular!

Thanks!!! 

1 Best answer

Accepted Solutions
Hal_Al
Level 15

City Tax

Q. I'm paying taxes for both cities. Is this correct?

A. Maybe.  The general rule is that you only pay tax to the city you physically work in and your residence city.  Your residence city usually allows a credit, or partial credit, for tax paid to the work city, so there is little or no double taxation.  But special rules may (it varies by city) apply to itinerant workers, who don't have a fixed work place.  The  city where the main office is located usually gets to tax them. 

 

Your situation is special, in that even though you are itinerant, you apparently only work in one city (and that happens to also be your residence city).  Contact the city tax dept. for the city where the office is.  Explain your situation and ask them what their policy is.  You may qualify for a refund, for the days you did not work there. 

 

But, the answer may be academic.  Your residence city usually allows a credit, or partial credit, for tax paid to another city.  If your city is one that gives a full credit, it may not matter (unless the office location city has a higher tax rate than your residence city).

 

There's possibly another issue: If your residence city is one that allows a work city credit, it's unlikely that your employer is withholding tax for your residence city, at the full rate.  But it's possible and you may need to ask them to correct that.

 

For a list of all Ohio cities with an income tax go to

https://tax.ohio.gov/business/municipalities/08municipal-income-tax-forms

from there there’s  links to each city's tax web site.  

 

For more help, provide the names of the office city and your home/work city

 

View solution in original post

2 Replies
Hal_Al
Level 15

City Tax

Q. I'm paying taxes for both cities. Is this correct?

A. Maybe.  The general rule is that you only pay tax to the city you physically work in and your residence city.  Your residence city usually allows a credit, or partial credit, for tax paid to the work city, so there is little or no double taxation.  But special rules may (it varies by city) apply to itinerant workers, who don't have a fixed work place.  The  city where the main office is located usually gets to tax them. 

 

Your situation is special, in that even though you are itinerant, you apparently only work in one city (and that happens to also be your residence city).  Contact the city tax dept. for the city where the office is.  Explain your situation and ask them what their policy is.  You may qualify for a refund, for the days you did not work there. 

 

But, the answer may be academic.  Your residence city usually allows a credit, or partial credit, for tax paid to another city.  If your city is one that gives a full credit, it may not matter (unless the office location city has a higher tax rate than your residence city).

 

There's possibly another issue: If your residence city is one that allows a work city credit, it's unlikely that your employer is withholding tax for your residence city, at the full rate.  But it's possible and you may need to ask them to correct that.

 

For a list of all Ohio cities with an income tax go to

https://tax.ohio.gov/business/municipalities/08municipal-income-tax-forms

from there there’s  links to each city's tax web site.  

 

For more help, provide the names of the office city and your home/work city

 

City Tax

Thank you very much! I will definitely look into it and contact said offices to ensure that I am paying everything correctly and to see of I do qualify for any credits if not. Also, thank you for making your answer/explanation very easy to read and understand, and providing resources & links for further solutions. I find that sometimes the question is answered but often leaves more questions because the user answering leaves confusing lingo and long winded replies. So, all around you are much appreciated!! :).

(Also, after contacting listed offices and checking link if I do still have questions I can provide office city and home/work city names for further help, but will do so in the form of a direct message to you as to not publicly post where I work and reside).

Thanks again!!! 

 

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