I work in a city that has a 2.0% local tax rate and I reside in a city that has a higher local tax rate. How do I meet my total local tax obligation to my city of residence?
You may request that your employer, as a courtesy, withhold the additional tax due to your city of residence. However, your employer is not required to withhold local tax for your city of residence, only for your city of employment. Please advise your employer to contact RITA for residence tax withholding information. Example: a Youngstown resident who earned $10,000 in W-2 wages while working in Warren and who had $200 in local tax withheld to Warren would owe an additional $75 in local tax to Youngstown due to the individuals total local taxable obligation to Youngstown equaling 2.75%. Heres why: TAX RATE TAX CREDIT CREDIT LIMIT Residence City: Youngstown .0275 1.00 .0275 $10,000 (W-2 wages earned in Warren) x 2% (Warren tax rate) = $200 (Warren tax withheld). The Youngstown credit limit is .0275 (which in this case is greater than the .02 Warren tax rate); however, the credit limit may not exceed the applicable city rate to which the tax is due primarily, or the work city. Therefore
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