My Local Municipality Changed in 2022. How do I now file?

[abbym1717]

Hello! I switched from working in person to working remote early in 2022. I paid a portion of the local taxes for the city in which I worked (Strongsville, OH) and once I switched, I started to not pay taxes for that city anymore and started to pay local taxes in the city in which I lived (since I now work remote)(Sheffield Lake, OH). How will this affect my taxes? Will I be able to say that I paid for taxes in two separate local municipalities?

[xmasbaby0]

You have not provided any information about what state or cities you are asking about.   We might be able to help if you tell us where you are.

[abbym1717]

Apologies, I updated with the cities.

[xmasbaby0]

Thanks for providing the specific towns.   Both Strongsville and Sheffield Lake Ohio are RITA municipalities.  I think both have 2% tax rates.   Ohio has a very complicated local and city tax system.    Usually you get credit in one RITA locale for the other RITA locale that you were taxed in.   Another Champ is more knowledgeable in this matter.

@Hal_Al  ?

[Hal_Al · Accepted solution]

You are, and were always, required to file a  RITA return and  pay city tax to your city of residence (Sheffield Lake) on you entire salary for the year, regardless of where you worked.  Sheffield Lake allows a 50% credit for any tax paid to your work city (but not more than 1% tax).

Since  your employer stopped withholding Strongsville tax, on the date you started working from home  (you had the correct amount of Strongsville tax withheld), you do not need to file a separate work city (Strongsville) return for 2022. 

[abbym1717]

Thank you!