Residence city tax.

[Fakedollar]

Not sure if this has been asked and answer.

I've done extensive research, but found no answer.

I have 2 jobs. One is within the city I reside in and they have a residence tax and city tax, but is a flat rate of 2.75%. My other employer is located in another township that does not collect city tax.

Question is, does my city that I reside in, collect a residence tax for the other city because of the income I earn, although I only reside in one?

Thank you in advance.

[MaryK4 · Accepted solution]

Since you do not have a local tax in your work city, your resident city will tax you on your total income, even if it was earned in the other city.  The resident city usually gives a credit if you pay to another city (so you do not get double taxed.) but since you did not, they will tax you on the total.

[Fakedollar]

May I ask, how will they know about my other income earned in another city?

In my state, there is a company called RITA, (regional income tax authority) that collects city tax in RITA municipalities on behalf of those cities and my other employer is not located in a RITA municipality. 

So when I do my city taxes on RITAs website, it asks for your employer location. And I recently called them and they confirmed that they don't collect tax for the city my other employer located in. Although the city doesn't have a tax.

So, what I am confused with, how would my resident city know of the other income, if I am unable to input that information when doing my city tax return for where I live in on RITAs website? 

Hope that makes sense.

[ErnieS0 · Accepted solution]

Residents of a RITA municipality are taxed on all wages on their RITA return, whether they were earned in a RITA or non-RITA district.

If you were a resident of a RITA municipality during any part of the year, you must either file a Form 37 return with RITA or, if eligible, a Declaration of Exemption. You’ll list all your W-2s and will owe tax if your work municipality does not collect tax.