springfield ohio city tax

[tacross12]

I live in urbana in a non taxible township, I work in springfield ohio. Do I need to file springfield city taxes or do they cancel each other out?

[Anonymous_]

@Hal_Al 

[xmasbaby0]

Is your employer withholding tax for the city you work in?   

[tacross12]

YES

[Hal_Al · Accepted solution]

Q. I live in Champaign County Ohio, in a non taxable township with an Urbana mailing address.  I work in Springfield Ohio. Do I need to file Springfield city taxes?

A. No.  You normally only have to file a return for the city you live in, if it has an income tax. 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).

Q. Do they cancel each other out?

A. Not, exactly.  You don't file a city income tax return because: 1. You live in a township without a tax and 2. your employer withheld the correct amount for your workplace city (Springfield).  

If you did live in a city with an income tax (e.g. you lived in the Urbana city limits), the city you live in will allow a credit or partial credit for the withheld tax you paid to the work location city. You would file only an Urbana tax return, not Springfield.  

[Hal_Al · Accepted solution]

If you are new to Ohio, be aware that Ohio has School District Income Taxes (SDIT), in addition to City Income Tax.  Only residents of a School District (SD)  are subject to the tax (working within an SD does not subject you to SDIT).  Several Champaign County SDs have the SDIT (but not Graham SD or Urbana SD).

To verify or find out if you live in a school district or city (municipal) with an income tax enter your address at:

http://www.tax.ohio.gov/Individual/LocalTaxInformation.aspx