Some people who worked from home in 2022 could save hundreds of dollars on their local taxes by requesting a refund if taxes were withheld for another place. But I’ll warn you: it’s a hassle.
people who worked from home in 2022 could save hundreds of dollars on their local taxes by requesting a refundI’ll save $300 on my municipal taxes this year — about a 20% savings. I’ll save $220, or 13%, next year. But the paperwork took about 12 hours to figure out.handles this the same way. Two otherwise identical workers can get completely different amounts of money returned, depending on where their office and homes are located.
Employers generally keep part of your paycheck, anywhere from 1% to 3%, to pay municipal incomes taxes. And Pre-COVID-19, 100% of this money went to one city for most people. She said it’s too early to tell how common this problem is. As RITA gets refund requests, it will get a sense of which employers are still withholding all to one location.RITA and the Central Collection Agency, Cleveland’s income tax administrator, handle them differently.Getting a local tax refund. How much money can it save you?
I started the year fully remote, then worked in the office for one day each week. Now it’s three days a week. RITA’s refund worksheet takes paid time off out of the equation. The days off are divided between office and home. Three days in the office essentially becomes a 60/40 split. its share until you get your refund approved, Arrighi said. You should tell RITA that you’re waiting on a refund when you file.A real quick explainer: Some cities give residents a tax break if they paid taxes to another city. But some only give partial credit.
Let’s run the same math but replace Berea with Shaker Heights; where the tax rate is 2.25% but residents only get a maximum 1% credit for taxes paid elsewhere. Office in Cleveland, but work in Berea twice a week? And let’s say you got 20 days off in 2022. Your total tax bill was $1,500. Now it’s $1,272 You’ve read 1,500 or so words about math. So, obviously, figuring this all out is time-consuming.
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