I live in West Virginia and work in PA. There is a local income tax in North Allegheny County I PA. Am I able to get a refund back on that locality tax?

[stacylsix78]

i live in WV but work in PA. They only take out WV state taxes which is correct but I pay a locality tax to Allegheny County in PA. Can this tax be refunded?

[AnthonyC · Accepted solution]

Local taxes aren't covered by the agreement between Pennsylvania and West Virginia, so you cannot get a direct refund of those taxes.  You physically work in that locality so the local jurisdiction will assess you the local tax.

However, you can use these local taxes paid as a basis for an out-of-state credit on your West Virginia return.  So, you may wind up recouping some of the money by paying less tax to West Virginia because of the credit and thus a higher refund.  When you are going through the West Virginia portion of TurboTax, pay close attention to any screens that ask about whether you worked out of state and an out of state tax credit.  You can enter the local taxes paid for this credit.