do i file a city return where i live or work
of where you live or where your employer's main office is located. , the City holds the employer liable for withholding the tax. Therefore, you do not have to file a Middletown tax return if you work in Middletown but live elsewhere.Exceptions to this: You are subject to tax on all income earned while. 1  If you are a Federal employee working in the City of Middletown and your city tax is not withheld you must file a Middletown tax return.2  If you are self-employed in the City of Middletown and live elsewhere, you must file a Middletown tax return. If you are a Federal employee working in the City of Middletown and your city tax is not withheld you must file a Middletown tax return. 2  If you are self-employed in the City of Middletown and live elsewhere, you must file a Middletown tax return.