Should I have taxes withheld for a municipality I neither work or live in? I live and work remotely from outside of city limits in Ohio. My employer is in Virginia.

[steve]

my employer has been witholding local taxes for the munincipality of my mailing address. Should I correct my W4 and seek a refund for the local taxes that were witheld?

[MindyB]

Yes, you should seek a refund, and ask your employer to stop withholding this tax. Instead of the W-4, you can give them the IT 4, with your home address instead of mailing address.

Because you both live and work physically outside that municipality's limits, you do not owe them income tax. Ohio municipal tax is based on where the work is physically performed and where you legally reside. Your "mailing address" (often determined by the post office) does not always match your actual tax jurisdiction.

You don't say which municipality you have had tax withheld from, but some municipalities don't require a $0 tax return for the refund.  You may be able to fill out a form to request a refund.  For example, you should file Form 10A if it was a Regional Income Tax Agency (RITA) municipality, but check with your specific jurisdiction.

[steve]

Thanks.  My mailing address is in Chillicothe OH, which is not part of RITA, so I assume I will need to contact the City to find out how to request a refund?

[AmyC]

Chillicothe OH has a mandatory filing for anyone who lives or works there. I am sure you employer saw these rules and your mailing address and took the money. If you live outside of the city limits, you can file for a refund.

Reference: Chillicothe Income Tax