Why should my employer take my city tax out for the city I work in and not the city I live in something is wrong here. Sounds like double tax and rename it e residential tax. The state of Ohio is so wrong in doing this. The smalls town suffer because of this rule.
You'll need to sign in or create an account to connect with an expert.
If you live in one Ohio city but work in another, you get credit from the city you live in for the tax withheld from the city in which you work. If there is a difference in the tax rate between those two cities, then you do pay the difference when you file your tax return. Ohio does have a complicated system in which there are city taxes, RITA, and school district taxes. Be careful when you prepare your OH tax return. Enter the information from your W-2 very carefully. Filing for those city, RITA, or school district taxes will not be automatic.
https://ttlc.intuit.com/questions/3976472-did-turbotax-file-my-rita-for-ohio
https://ttlc.intuit.com/questions/3537370-how-do-i-pay-my-ohio-school-district-tax
If you live/work in a RITA location, you will probably find that is easier to file on the RITA site instead of trying to use TurboTax for RITA.
RITA Web site: http://www.ritaohio.com/
No, there is nothing wrong. Your employer is required to withhold for the work location city. Employers are only required to withhold for the work city, although many will voluntarily withhold for the resident city, in addition (not instead of)
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. You can't get a refund unless it was improperly withheld, i.e. you didn't actually work there for all or part of the time that your employer was withholding. If you live in a city with an income tax, you are subject to that city's tax as well. The city you live in will usually allow a credit or partial credit for the withheld tax you paid to the work location city. Employees of most big companies, in Ohio, seldom owe any city tax, at tax time (but they still have to file a residence city return), because the employer holds out exactly the right amount for both work and resident city, taking into account the credit. If your employer is unwilling to do that because of the paper work hassle, you just have to deal with it. It's a bigger hassle for small employers than it is for the employee to just claim the credit on his resident city return.
Note:
School District (SD) tax is completely separate from city tax. You do not get a credit for city tax withheld on an SD return and vice versa.
Only school district residents file a return & pay the tax. Non residents who work within a taxing SD are not subject to withholding. If SD withholding was mistakenly withheld, your residence SD will not give you a credit. You have to file a 2nd SD return to get a refund.
Hi,
I live in one city in Ohio and work in another. There is an income tax I have to pay to the city I live in. However, my employer does not take out any city taxes for the city I work in. How do I pay these city taxes online?
I live in Marysville and I work in Plain City.
Please let me know if you can. I appreciate your time.
I live in a township no income tax, my job is located in the same township. I’m a garbage man my route that I pick
up for is in Fairfield. I was just told that I have to pay income tax to a city I don’t work for, or live in. Upon looking into their tax laws it says no one pays income tax who don’t work for the city, live in the city or have a business in the city. According to the companies payroll there’s nothing they can do. I’ve been with this company for 5 years and this is the first time it’s been mentioned. The other issue is this, I get paid for 8 hours if done in under 8. When I work ot on the weekend that city gets that money, when I go on vacation that city gets that money. We have many operations in this company from drivers picking up construction boxes and driving back in to dump material that can’t be charged a tax per day since their all over the place and not in one local city. How does that work if 100% of your income has to be taxed when I work the weekend it’s in the township. That should be non taxable income since the township doesn’t have an income tax.
You can file a Form R1 - Non Resident Refund Return to get a refund for the days you worked outside Fairfield.
Fairfield says:
Non-residents may receive a refund for full days worked outside the City of Fairfield when the employer is located in Fairfield. Please note that no refund is allowed for holidays, sick days, vacations, severance pay, or supplemental pay days or the equivalent of such days.
It may be legal, but it's unethical, and contrary to our nation's basic tenets... it's not only double taxation, it's taxation without representation! Any "taxes" extorted by a city should be paid by the resident landowner - in this case by the business. It's not right that the workers should be penalized because of their employer's poor choice of location!
I am looking at the SD-100, employee had $70 local tax withheld by employer district, has $24 tax due to resident district. Everything is entered correctly but the $70 does not offset the $24 and create a refund. Instead it appears the $24 is owed in addition to the $70 already paid. There is no line on the SD-100 for taxes paid to other districts. Wondering if you could clarify based on these conditions?
Q. There is no line on the SD-100 for taxes paid to other districts. Is that right?
A. Yes. Unlike, Ohio CITY tax, you ae not required to pay income tax to for the employer location school district (SD). So, there is no credit for tax erroneously paid to the employer location SD. You have to file two SD returns (form SD100). One to get the $70 refunded from the wrong SD and one to pay $24 to the correct SD. Tell your employer to stop withholding for the employer location SD. He is doing it wrong. He should be withholding for your residence SD (or do no SD withholding). It is wrong to withhold for the work location SD.
Be sure the $70 withheld was SD tax and not City tax. Your employer would be correct to withhold city tax, for the city the work location is in, but not SD tax. You cannot get credit, on your resident SD return, for work CITY tax withheld.
You have to pay both for the city you work in and the city you live in. They are correct with taking out the taxes you work for and you will probably have to pay the city you live in at tax time
Most OH cities allow a partial credit (some even a full credit), for tax paid to the city you work in. Not all, but most, so you can usually avoid double taxation. @cschoolcraft26
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
Rmurali82
New Member
snowy_al
New Member
petersaddow
Returning Member
Young23
New Member
trancyml
New Member