I was a travel nurse in Ohio and Virginia but a full year resident in Pennsylvania. I am getting my entire Ohio state income tax of $214 back, but why am I paying Local Income taxes of $218.11 when I already pay local income taxes where I reside all year

[Hal_Al · Accepted solution]

Ohio has a reciprocal agreement, on wages, with all neighboring states. No Ohio state taxes are withheld or due and you do not need to file an OH return. But your home state will tax you on your Ohio income.

If Ohio taxes are mistakenly withheld, you have to file an Ohio return to get a refund. You should ask your employer to stop withholding so you don't have to file an Ohio return every year.

However the reciprocity agreement does not apply to local city taxes. You are not required to file a local city return, but you are also not entitled to a refund of the city withholding (box19 on your W-2), unless there was an error in the amount.

You can use the city taxes paid in OH for an offset to the local municipal taxes that will be due if you are required to file a local PA return.   

[nikhendricks]

How do you do this?  "You can use the city taxes paid in OH for an offset to the local municipal taxes that will be due if you are required to file a local PA return".    I believe my PA local tax is asking for a Schedule G/L, which I did not fill out with my state return.  My husband started working for a company in Ohio before the rest of us moved there.  His state income wages were split - first to PA, then to OH - but all of his wages were subject to City of Columbus local tax.  How do I get credit on this for my PA local taxes while we were still residents there?