Work in Maumee but live in Northwood
I work in Maumee and my employer takes out Maumee City taxes. They have a reciprocity agreement with Northwood (both are 1.5%), so does this mean all of the Maumee taxes I paid will go toward Northwood?
I work in Maumee and my employer takes out Maumee City taxes. They have a reciprocity agreement with Northwood (both are 1.5%), so does this mean all of the Maumee taxes I paid will go toward Northwood?
Q. Does this mean all of the Maumee taxes I paid will go toward Northwood?
A. Yes. But you still need to file a Northwood return, even though you will not owe any tax.
You normally only have to file a return in the city you live in. It is not necessary to file one in the city you work in, if different. Your employer will remit withholding to the city you work in, but you do not file a return unless you're claiming a refund or your employer didn't withhold enough ( both highly unusual). The city you live in will allow a credit or partial credit for the withheld tax you paid to the work location city.
It's not really "reciprocity" between Northwood and Maumee. It's the fact that Northwood allows a 100% credit (up to 1.5%) for tax paid to any other city, that keeps you from owing any income tax to Northwood.
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