I live in Oakwood, Ohio and Work in Xenia, Ohio. My w-2 shows a locality withholding for Xenia. Do I owe Xenia? Is Oakwood tax coming out of my pocket?

[vanceemily]

I work in Xenia, Ohio and live in Oakwood, Ohio. I want to figure out if my employer made an error with my locality withholding. I want to know if I owe xenia local taxes for working there. I also want to know if I do not owe can I get a refund to apply to the city of Oakwood.

[DianeW · Accepted solution]

Employers typically are required to withhold tax in the city where there are situated.  Your Ohio locality where you live should recognize the tax that was already paid.

All residents of a city with an income tax must file a city return and usually pay that city some tax, even if their work city withheld tax. You normally only have to file a return in the city you live in. It is not necessary to file one in the city you work in, if different.

Oakwood City gives you credit for city tax withheld and paid to other cities as long as you provide the W2 as proof. 

• City of Oakwood Tax Return
• City of Oakwood Tax Return Instructions