Working in multiple states and cities

[bluegill_22]

What is the name of your state? Home State Ohio
I work for a Cable company in southern Ohio. The systems go into Kentucky,So sometimes I have to work in 2 states. The Company started this paycheck,taking out 3 different city taxes, 2 in Ohio and 1 in KY,They failed to withold any state taxes at all.All of the techs out this office were the same way.we're all worried that each home state we'll end up having to pay in at the end of the year and possibly oweing the 2nd state as wellHow can we be charged a tax in 1 state and multiple cities (2 states) and not be charged for the 2nd state?

 

[Snipes5]

As for the cities, it depends on what their tax rules say. In some, you are taxed if you work there. In others, you are only taxed if you live there.

I suspect you won't be required to have withholding in all those places at once. Please see an Enrolled Agent in your area to find out exactly what is required. You can then go to your employer with the information, and get it straightened out.

Often, neighboring states have agreements whereby if you pay tax in one state, you don't have to pay in the neighboring one, regardless of whether you work in one or live in the other.

Snipes

 

[abezon]

The company can withhold taxes for multiple states, as long as it keeps track of what income is earned in each state. For example, if you earn $40,000 total, with $15k in OH & $25k in KY, you should have a W-2 that shows $40k in box 1 (federal wages), & $15 for OH wages & $25k for KY wages. Same thing goes for city taxes. You should definitely go to a professional preparer for help straightening out the multiple returns. Be sure you keep track of how much money you earn in each place so you can double check the W-2s each year.