By law, your employer is only required to withhold for the work location city, although many will voluntarily withhold for the resident city as well. So, you'll have to ask your employer (it will be readily apparent on your first pay check-pay stub). Most small employers will only withhold for the work city. It's too much paperwork to do both.
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. Your employer will remit withholding to the
city you work in, but you do not file a return unless you're claiming a refund or your employer didn't
withhold enough ( both highly unusual). The city you live in will allow a
credit or partial credit for the withheld tax you paid to the work location
city.
If you moved to West Chester, from Fairfield, in 2018, you will have to file returns in both cities, for 2018. You will have file as a part year resident of each. This assumes both cities have a City Income Tax.
To verify or find out if you live in a school district or city with an income tax enter your address at:
http://www.tax.ohio.gov/Individual/LocalTaxInformation.aspx
By law, your employer is only required to withhold for the work location city, although many will voluntarily withhold for the resident city as well. So, you'll have to ask your employer (it will be readily apparent on your first pay check-pay stub). Most small employers will only withhold for the work city. It's too much paperwork to do both.
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. Your employer will remit withholding to the
city you work in, but you do not file a return unless you're claiming a refund or your employer didn't
withhold enough ( both highly unusual). The city you live in will allow a
credit or partial credit for the withheld tax you paid to the work location
city.
If you moved to West Chester, from Fairfield, in 2018, you will have to file returns in both cities, for 2018. You will have file as a part year resident of each. This assumes both cities have a City Income Tax.
To verify or find out if you live in a school district or city with an income tax enter your address at:
http://www.tax.ohio.gov/Individual/LocalTaxInformation.aspx
I have the exact same question. I work in Fairfield where they withhold income tax and I live in West Chester where there is no income tax. My employer is withholding income tax will I get it back when I file?
No, you cannot get any of that refunded. And you do not need to file a Fairfield city return. What your employer withheld is the exact amount that is due to Fairfield.
I moved from Columbus to Cincinnati and need to calculate my income at the time of my move; is it as simple as using the YTD taxable income amount from my last paystub while living in Columbus?
Q. I moved from Columbus to Cincinnati and need to calculate my income at the time of my move; is it as simple as using the YTD taxable income amount from my last paystub while living in Columbus?
A. Yes.
Ok, I live in Columbus but work in Newark. Columbus is 2.5% and because I work in Newark they only take out 1%. Obviously, I owe the city of Columbus. I have paid the city of Columbus for several years. Because I have paid the City of Columbus in the past can they require me to estimate my taxes and pay quarterly? The city of Columbus sent me a letter saying that I need to estimate my taxes. Is this true? Can I have my employer in Newark take additional out to make up the difference? Is my employer required to allow me to do be able to take additional out on my city taxes? I know they allow you to take additional on state and federal but, they are saying they don't do additional on city.
@andhale Your employer has to take out the Newark tax because that is where you work. The employer does not have to withhold tax for Columbus, where you live. Since you have to pay the difference for the higher tax rate for Columbus, where you live, it would be better for you to pay quarterly to Columbus, which you could do on the Columbus tax web site.
https://www.columbus.gov/IncomeTaxDivision/FilingAndPayments/E-FileE-PayCreditsACH/
What if I relocated to another state late in the year (August)? I moved to FL in August which still puts me in the category of full time resident for Ohio. Do I have to pay taxes for the income made in another state to the city in Ohio since that is technically where my full time residency was for the year?
I live in Cleveland and work in North Olmsted. North Olmsted takes out city taxes. I have paid my taxes to ccatax for cleveland but when I tried to file my annual for ccatax Cleveland it says that on my W2 there was not enough came out for North Olmsted? What do I, do? I have never had this problem before. It says box 5 and box 19 dont match the tax liability.
Check your entries for your W-2, specifically box 5 and 19, they should be the same.
If not, talk with the payroll department where you work.
The W-2 is under your income in TurboTax; click "edit" next to your W-2 and check the boxes to make sure they match your paper W-2.
How do I go about finding out which to input for TurboTax 18 19 and 20.
Yes I live in one city and work in another they printed me a page to WW2 as different numbers with the resident city named resident City wages and Resident city tax please assist
@Msmithm18 - Ask your employer for a corrected W-2.
In the mean time, you have all the info you need to file. When you enter your W-2 in TurboTax, enter the items in the correct boxes on the W-2 screen:
"they printed me a page to WW2 as different numbers with the resident city named resident City wages and Resident city tax please assist" I don't know what that means. Did they even withhold for the residence city? That would be unusual (but not unheard of). Or are you saying that the numbers in boxes 18-20 of your W-2 are totals for both your residence and work cities and the separate sheet gives you the breakdown? If so, that's just more correcting for your employer to do. He is required to use two lines on the W-2 and separate the info for the two cities. You could enter the break down, on two lines, at the W-2 screen; which would allow you to file. But you may get some kick back from the citys after you file
They may. You will need to view your W2 to see if city taxes were taken out. This will be sprecifically listed in boxes 18-20 of your W2 listed by your employer. If it is not listed in those boxes, do not record the information. They may have included the information on a supplemental form so that you can file a tax return directly with that city. You may check with your employer to clarify the information.
Hi @Hal_Al, me and my wife are in a similar situation. Back in 2019 we bought a house in Plain City, OH. She works in Hilliard and I work in Dublin and both our employers withhold 2% for local income tax (for Dublin and Hilliard respectively), on top of that we pay the local School District tax which in. Couple of weeks ago we received a bill for more than $4,000 from the village of Plain City for local taxes for the portion of 2019 and the whole of 2020.
Hi @Hal_Al, me and my wife are in a similar situation. Back in mid 2019 we bought a house in Plain City, OH. We both work in different cities, I work in Dublin and she works in Hilliard and both our employers withhold 2% in local income taxes (for Dublin and Hilliard respectively). On top of that we have 1.25% withheld from our paychecks for the local School District. A few weeks back we received a bill from the taxation department of the Village of Pain City for $4,500 for the portion of 2019 and the entire 2020. Their income tax rate is 1.5%.
Do we have to pay the whole thing? I know some municipalities have tax reciprocity between them. It would be nice if we can at least get a portion of the taxes withheld from the localities we work in.
Q. Do we have to pay the whole thing?
A. Yes. Plain City is one of the few cities in Ohio that does not allow any credit for the tax that you paid to your work place city(s).
School District Income Tax (SDIT) is a totally separate tax from City Income Tax (CIT), so the city will not give you a credit for the SDIT you paid, either.
Ohio cities do not have "reciprocity", per se. But, most allow a partial credit (some even a full credit), for tax paid to the work place location city. You just happen to live in one that doesn't.
I see in the best answer response this comment was made: "The city you live in will allow a credit or partial credit for the withheld tax you paid to the work location city. " I just want to note that everyone will need to check this. Marysville City's website specifically says "The City of Marysville does not give tax credits for taxes paid to another city." The best way to know for sure if your residential city offers any credits is to contact the city within which you live directly. I work in Hilliard and live in Marysville. My Hilliard taxes were withheld and my Marysville city taxes were not, as expected. I'm filing with Marysville for all of 2020 and Q1 of 2021, with no credits for the taxes I paid to Hilliard.
Just curious, what if your employer is only taking out exemptions for 1 and you actually have 3? Wouldn't you have overpaid to the city you work in and need to file a return and get refunded the overpayment?
Q. What if your employer is only taking out exemptions for 1 and you actually have 3? Wouldn't you have overpaid to the city you work in and need to file a return and get refunded the overpayment?
A. No. There are no "exemptions" for Ohio city income tax and withholding. It's a straight percentage. Everybody has the same % withheld, regardless of whether you have no kids or 10 kids.
The "exemption certificates" you gave your employer was only for federal and state income tax.
Thank you! My check stub says 1 local exemption so I wasn't sure. This makes sense.
Yes, that could be possible in which case you could file a city or county return to get that portion of tax refunded.
If you are due a refund, you are not required to file. Only if you want the tax refunded would you perhaps want to file.
TurboTax only supports certain city returns and those returns are only generated with the corresponding state return; therefore it may require you file the city return independently from your TurboTax program.
Just moved 18 months ago. 2022 we were in painesville township the whole year.. trying to do my wifes rita taxes. On her w2 it has cleveland 37k then under that it has painesville 20 k. The taxes they with held on both.. ive never seen it have two localities. This year is the first year she ever owed.. says she owes 500.. my.question is if she works in cleveland. Shouldnt it just have cleveland? Not both where she lives and works? Can this be a mistake hal?
Apparently Ohio employers can withhold tax for the both the city worked in and the city resided in. You can file your Cleveland and Painesville taxes separately, and you should get refunded from Painesville if you have to pay Cleveland.
You may want to leave the Local Tax info off your W-2 entry so you don't have issues Efiling.
Here's a link to Ohio Municipal Sites to help you.
From @Hal_Al:
"Any Ohio city, with an income tax, is allowed to have withholding taken out of your pay while you worked in that city. Your employer is REQUIRED to do that withholding. He is not required to withhold for your residence city.
Employers are only required to withhold for the work city, although many will voluntarily withhold for the resident city as well. Employees of most big companies, in Ohio, seldom owe any city tax, at tax time (but they still have to file a resident city return), because the employer holds out exactly the right amount for both work and resident city, taking into account the credit.
Yes, many people pay have to both cities, although "double" is rare. But not all people have to pay twice, many cities allow their resident a full credit for what they paid the work city."