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coffy102
New Member

I have been paying city tax for well the entire time I have been using turbo tax 2016-2020 when I live in a area that doesn't require me to pay city tax. help...

I have paid quite a bit of money (to a  24 year old)  to the city of Detroit when I live outside the city of  Detroit,  and they are coming after me for unpaid city tax do I need to go to a real tax professional? or can turbo tax help me with my situation.  I DID pay for TurboTax deluxe...  and this issue is kind of major to have been overlooked by TurboTax
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6 Replies

I have been paying city tax for well the entire time I have been using turbo tax 2016-2020 when I live in a area that doesn't require me to pay city tax. help...

Did you work in an area or for a company that requires Detroit city tax?  You need to find out why you are being charged.  Start with the Detroit city income tax department.

 

 

I have been paying city tax for well the entire time I have been using turbo tax 2016-2020 when I live in a area that doesn't require me to pay city tax. help...

Your question is confusing, you say you have been paying city tax that you don't owe, but you also say you are being billed for city tax you didn't pay.

 

In the state of Michigan, you owe city tax for the city you live in on all your world-wide income, if you live in a city with income tax.  Turbotax can prepare some city returns but most can't be e-filed so you have to sign and mail the return.  You also owe city income tax if you work in another city that charges tax, but only on income earned in that city.  Your city of residence will give you a credit for tax paid to another city.

 

For example, you live in Lansing and you work in Detroit.  You earn a salary in Detroit and you have a side gig in Lansing.  You owe city tax to Detroit for the income you earn while working in Detroit and you owe Lansing tax on all your income.  Suppose you owe $200 to Lansing but you pay $175 to Detroit.  Lansing gives you a credit and you only pay $25 to Lansing so you don't pay double tax on your Detroit income.

 

Now, Turbotax will know where you live (from your zip code) but Turbotax won't know that you work some place else unless there is withholding on your W-2.  Otherwise, you have to tell the program that you owe tax in another city.  If you don't tell Turbotax that you work in Detroit, Turbotax won't calculate Detroit tax.

 

Although your question is not clear, I will assume you work in Detroit and live some place else and you have been paying city tax to the city you live in but not Detroit.  In that case, once you calculate and pay your Detroit tax, you can recalculate your other city tax, apply the credit, and ask for a refund.   You could do this in turbotax but it also looks like at least some cities have their own online site and use a common form.  You might want professional help depending on how far back you need to go and how good your tax records are. 

 

 

Here is a list of city tax returns that Turbotax can prepare.  But most can't be e-filed.

https://ttlc.intuit.com/community/returns-and-forms/help/which-city-tax-returns-can-i-do-in-the-turb...

coffy102
New Member

I have been paying city tax for well the entire time I have been using turbo tax 2016-2020 when I live in a area that doesn't require me to pay city tax. help...

sorry for being unclear, I neither work in Detroit nor live in Detroit, and they found that I didn't pay it "in full" I paid only partial 

 

where I live and work has a city  tax of 0% so I shouldn't be paying anything at all

I have been paying city tax for well the entire time I have been using turbo tax 2016-2020 when I live in a area that doesn't require me to pay city tax. help...

@coffy102 

Because Michigan city taxes can’t be e-filed, the only way you would have been paying them is if you printed the city tax return and mailed it in. I don’t know why you would do that if you knew you didn’t live or work in that city.  If you think you have paid city taxes that you did not owe, you should contact the tax receiver for that city to discuss your options to re-file or apply for a refund.

 

Separately, if Detroit or another city has sent you a bill for city taxes that you believe you do not owe, you will need to contact the city tax receiver and find out what kind of proof they would accept that you neither live nor work in that city.

coffy102
New Member

I have been paying city tax for well the entire time I have been using turbo tax 2016-2020 when I live in a area that doesn't require me to pay city tax. help...

I have never mailed in my taxes not once. I have only ever used turbo tax for my entire tax life. And the evedience they have is that I said on my taxes that I need to pay city tax. Other than that no evidence other 

Hal_Al
Level 15

I have been paying city tax for well the entire time I have been using turbo tax 2016-2020 when I live in a area that doesn't require me to pay city tax. help...

Although most Michigan cities require the mailing of separate tax returns, I believe Detroit returns are usually included with the state return.  So, TurboTax probably did file city returns. 

 

You may need a tax professional.  But, you may only need to contact the city to straighten this out.   It sounds like they think you are subject to city tax because you have been filing a city return every year. Your employer probably mistakenly withheld city tax

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