Local income taxes
Many cities impose a local income tax that is based upon where a person either lives or works. How these taxes are calculated varies from state to state, but often if a tax is calculated on the work location a full or partial credit is applied to the taxes that are based upon the residence location, thus avoiding double taxation. (Check with your city, as some do not prevent this double taxation).
If you pay taxes based on your employer’s location and you work from home or travel outside of that city, you are probably eligible for a refund for the taxes you paid for the time you were not working in that city. (This generally does not apply to holiday and vacation time).
Of course, if the tax rate assessed on the work location is the same as the residence tax rate, any reduction in one will result in an offsetting increase in the other, resulting in no benefit to the taxpayer. However, if the residence tax is less or does not exist, requesting a refund for the tax paid for time not physically in the work location city makes sense.
Many cities also allow you to request a refund for up to three years from the due date of the tax return. Check with their tax department to see what documentation is needed to apply for the refund.
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