I live in Dayton and work in Kettering. For some reason in the last couple of years my employer changed my withholding and is paying it to Kettering, the city I work in. Always before they paid it to Dayton, the city I live in. Dayton allows a credit for taxes paid to other cities, but only for 2.25%, which is Kettering's tax, Dayton's is 2.5%. But Kettering withheld more than 2.25%. I had to file a return for a refund of the amount over 2.25% with Kettering and pay the excess to Dayton. I am assuming I have to claim the refund from Kettering as income but where do I claim the amount paid to Dayton so I am not taxed on it twice?
