I'm not sure what state you are working on, or I could be more specific. You may be subject to local taxes that will vary depending on what county you are living in. This question is normally asked when you start entering information on your state tax return. It may not appear again or be difficult to find once you have made the entry. You can start the state return over by choosing the Delete State tab when you go back into your state return, then you can go through it again and look for the county question.