I reside in Ohio, am working temporarily (4-5 months) in Pennsylvania. My company is based in Utah. The last 2 years I had Ohio taxes deducted and now they're telling me they can't deduct Ohio taxes, and they are now deducting Utah taxes. Is this legal? And will it effect my return?

It's technically legal, but it is NOT correct.

You are liable for taxes in the states where you WORK and where you LIVE, NOT where the company is located.

The state of Utah has NO LEGAL STANDING to tax your income, and you should so notify your company of that fact. A phone call to the Utah Tax Department by the company will confirm what I have said.

The company is NOT obligated to withhold either Ohio or Pennsylvania state income taxes, though I am perplexed as to why they would not withhold at least Ohio taxes because they have already done so for two years.