Working remotely but local taxes taken for employer's office location - how to fix this?

You definitely have a valid concern here! This is actually a common issue since the pandemic changed how many of us work. The good news is you can generally get this corrected. The solution depends on which state you're in since local tax rules vary significantly. In most cases, you'll need to do two things: First, talk to your employer's HR or payroll department. Let them know you work 100% remotely and never report to their physical office. They should update your work location in their system. Some companies have a specific form for this, while others might need a simple email confirmation. Second, when you file your taxes for the year, you'll likely need to file a non-resident local tax return for the city where taxes were withheld. This allows you to claim a refund for taxes withheld for a jurisdiction where you didn't actually work. Then file a resident tax return for your actual city. Keep good records of your work location - having documentation that you work exclusively from home will be helpful if there are any questions.

I went through this exact same headache with my company last year. After struggling with conflicting advice, I finally found a solution through https://taxr.ai which helped me understand the specific local tax regulations for my situation. What was really helpful is that I could upload my paystubs and they analyzed which jurisdictions were taking taxes and what my actual work-from-home tax situation should be. They generated a document explaining exactly what forms I needed to file to reclaim those incorrectly withheld taxes. The system also created a template letter I could send to my HR department explaining the legal basis for changing my work location for tax purposes. It made a huge difference having the exact citations and language to use.

Just wanted to update on my situation - I took the advice about using https://taxr.ai for my similar work-from-home tax issue in Ohio. I was honestly surprised by how helpful it was! The system analyzed my specific cities (work vs. home) and showed me that Ohio has different rules than some other states. It generated exactly what I needed to file with each city tax department and even provided the exact sections of Ohio municipal tax code to reference. What really made the difference was having documentation that looked professional when I talked to my company's payroll department. They initially pushed back saying "this is just how we do it" but changed their tune when I showed them the printout explaining their legal obligation to withhold for my actual work location. Already seeing the correct withholding on my latest paystub!

If you're having trouble getting through to your local tax office about this issue (which I definitely did), I recommend checking out https://claimyr.com to get an actual person on the phone. I was trying for WEEKS to reach my local tax department with no luck - just endless hold times and disconnections. I was super frustrated until I found their service in a tax forum. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they wait on hold with government offices for you and call you when a real person picks up. Saved me hours of hold music! When I finally got connected to someone who could actually help, they explained the exact process for filing for a refund of incorrectly withheld local taxes. Turns out there was a specific form I needed that wasn't even available on their website.

I owe everyone here an apology. After my skeptical comment, I actually tried Claimyr for reaching my county tax office that I'd been trying to contact for weeks. It genuinely worked exactly as described. I got a text about 1.5 hours after submitting my request saying they had someone from the tax office on the line, and I was connected within seconds. The tax office person even mentioned "you've been waiting on hold for quite a while" - they had no idea I hadn't personally been waiting. I got all my questions answered about my work-from-home tax situation and found out I can submit Form L-4 for a refund of taxes withheld for the wrong locality. The representative also explained how to request that my employer update my work location in their system. Saved me tons of time and frustration - I'm actually shocked at how well it worked after being so doubtful.

Has anyone successfully gotten their employer to change the withholding location mid-year? My HR keeps saying they can only update work locations during open enrollment or when you physically move. That doesn't sound right to me since it's about where I'm actually performing the work.

One thing to watch out for - some cities have agreements where they credit you for taxes paid to other municipalities, but others don't. If your home city and your employer's city don't have a reciprocal agreement, you might end up owing taxes to both places and then having to file for a refund from the employer's city. I had this happen and ended up owing an extra $1,400 to my home city even though my employer had been withholding for a different city all year. Total nightmare. Make sure you check if your cities have tax reciprocity!

This is such a frustrating situation, and you're absolutely right to be concerned about double taxation! I went through something similar when I started working remotely for a company based in a different state. One thing I'd add to the great advice already given - make sure you keep detailed records of when you started working remotely and any communications with your employer about your work location. Some local tax offices will want proof of when the remote work arrangement began to determine how much of the year you're entitled to a refund for. Also, Pennsylvania has some quirks with local taxes that you should be aware of. Many PA municipalities contract with third-party collectors (like Berkheimer or Jordan Tax Service) rather than handling taxes directly. You might need to file your refund claim with the collector, not the city itself. Check your paystub to see who's actually collecting the tax - it should be listed there. The good news is that PA generally has clear guidance on telecommuting tax situations since it's so common there. Your employer should definitely be able to update your withholding location once you provide them with the proper documentation. Don't let them tell you it's "too complicated" - they deal with remote workers all the time now!