Don’t Forget your City Tax

Posted by James Hutchinson Mar 30, 2009

This time of year it is easy to make mistakes on taxes. Either you are focused on Federal and State returns, or you have filed and think everything is behind you.

If you haven’t now is the time to make sure you’ve completed all the miscellaneous returns before the deadline. City taxes are often a surprise.

In most municipalities, city taxes are a simple percent of earned income, without all the deductions and additional income. Taxpayers need to make sure that the amount deducted is correct and sufficient to cover the amount owed.

There are couple scenarios to watch for.

• If you recently moved, you may not receive a tax form notifying you of your liability. This doesn’t excuse you from penalties or interest. It is the taxpayers responsibility to pay what is owed. As they say, ignorance of the law is no excuse.
• If you work in one city but live in another, the tax deducted where you work may not satisfy your obligation in your home city.

Don’t get caught with unnecessary penalties. Make sure you check your city tax obligation before the deadline.