RITA OH Work Local Tax Vs Residence Local Tax

[jfulton1]

Hi

Situation, work in Streetsboro, local tax withheld for Streetsboro on W2, live in Shaker Heights, no local tax withheld.

Do I have to pay both Streetsboro local tax and Shaker Heights local tax?

Yes I know it's RITA and needs to be filed separate.

Thanks

[MaryK4 · Accepted solution]

Sadly, yes- RITA (Regional Income Tax Agency), is an income tax (in addition to the state and county tax) that is based on the city in which you reside AND the city in which you work (which are two different cities for most people.

[DGusman]

Be very careful when filing your Rita taxes.  I have had the following errors over the past few years depending on how the employer filled out the W-2.

1. When I worked out of state in a city that did not withhold local tax, but reduced the state tax for 401-k and other benefits, turbo tax inserted the State wages into the Local wages section and I Underpaid Rita.  This appears to be fixed for this year, but it was absolutely wrong last year and I had to pay a penalty.
2. In 2019, I worked in one RITA city and lived in another, and the W-2 properly listed the tax withheld for each city with the appropriate letter code, but Turbo Tax double counted the income, so it looks like I earned twice as much as I did, and it is saying that I owe money, when in fact I think that I am owed a refund.  

I will most likely take all of my information down to the RITA offices in Brecksville and have them calculate the taxes correctly.