CITY OF OAKWOOD 2025
INDIVIDUAL TAX RETURN
INSTRUCTIONS
Every resident of the City of Oakwood 18 years of age or older, whether or not you have taxable income or any tax is due, must file a return reporting all income earned regardless of where income was derived.
Every non-resident of Oakwood who has taxable income or loss, earned or derived from within the City, from which Oakwood income tax was not withheld at a rate of 2.5%, must file a return.
If you lived in Oakwood during part of the taxable year, you must file a tax return covering that period of time. Report the amount of income earned while you lived in Oakwood. Pay statements with year-to-date figures or a statement from your payroll department must be used if available. When the actual amount you earned while living in Oakwood cannot be determined and no Oakwood wages are listed in Box 18 of your W-2, you may apportion your earnings by the number of months or days of residency to find your taxable amount. If you prorate your income, you must also prorate any work city tax that was withheld on the same income. Attach a worksheet detailing your calculations.
If you have requested an extension of time to file your federal return with the IRS, you will automatically receive an extension of time to file your Oakwood return until October 15, 2026. Please include a copy of your federal extension when filing your return to avoid a late filing penalty. If you have not requested a federal extension, you may still receive an Oakwood extension by filing your request by April 15, 2026. Remember that an extension of time to file is not an extension of time to pay taxes owed.
Taxpayers who expect to earn taxable income, which is not subject to withholding at a rate equal to or greater than 2.50% are required to make quarterly estimated tax payments if their tax liability will exceed $200.00. First quarter declaration for 2026 is calculated on the 2025 tax return. Second quarter is due June 16, 2026; third quarter is due September 15, 2026; fourth quarter is due January 15, 2027. Additional instructions and vouchers are available on the city’s website.
Residents: Includes but is not limited to salaries, wages, commissions, other compensation and/or net profits, and would include but not be limited to: bonuses, incentive payments, director’s fees, property or benefits in lieu of cash, tips, dismissal or severance pay, wage continuation plans, taxable scholarships, and other compensation earned or received, lottery winnings, gambling proceeds, prizes, awards and proceeds from contests and other games of chance, some royalties, cancellation of debt income, net profits of all unincorporated businesses, professions, partnerships, or other activities, including but not limited to rental of real and personal property, regardless of where such income is derived.
Non-residents: Includes all income, salaries, qualifying wages, commissions and other compensation from whatever source earned or received for work done, services performed or activities conducted within the City of Oakwood, including any net profit of the non-resident, but excluding any partnership income or loss owned directly or indirectly.
All: Losses from federal schedules and other sources reported for federal income tax purposes cannot be used to offset qualifying wages, commissions, other compensation and other miscellaneous taxable income earned or received by residents or nonresidents of the Municipality. If an individual is engaged in two or more taxable business activities to be included in the same return, the net loss of one unincorporated business activity may be used to offset the profits of another for purposes of arriving at overall net profit or loss.
Includes dividends, interest, capital gains, precinct official earnings of less than $1,000.00, S Corporation income/<loss>, military pay and allowances, tax refunds, insurance benefits, pensions, annuities, alimony, third-party disability pay, Social Security, Medicare, poor relief, state and federal unemployment insurance benefits. The entire list of exempt income can be found in Chapter 148-1.03(11) of the Oakwood Municipal Income Tax Ordinance.
Beginning January 1, 2017, all municipalities have a net operating loss (NOL) carryover. The NOL carryover is the overall loss of federal Schedules C, E and F, computed WITHOUT regard to federal passive activity loss carryovers. Unutilized losses may be carried over for 5 years.
Each return must include your forms W-2 (showing wages and all taxes withheld for any municipality) and page 1 of your federal income tax return (Form 1040). In order to avoid requests for additional information, it is suggested that you include all federal schedules and/or statements supporting each income, loss or deduction reported and support documentation for additional municipal taxes other than the amount shown on the W-2.
Late filing penalty of $25 shall be charged on any return filed after the due date, or extended due date.
Late payment penalty of 15% shall be charged on any tax balance remaining unpaid after the April 15 due date.
Interest, calculated on the federal short term rate in effect + 5%, shall be charged on any tax balance remaining unpaid after the April 15 due date. A complete listing of annual interest rates is available on the city’s website.
Payment in full is due 04/15/26. Checks should be made payable to “City of Oakwood.” To make a credit card or echeck payment, please visit the City’s website at www.oakwoodohio.gov. A convenience fee will apply.
Returns requesting a refund should be mailed to: City of Oakwood Income Tax Department, 30 Park Avenue, Oakwood, OH 45419. All other completed returns should be mailed to: City of Oakwood, P.O. Box 269, Eaton Rapids, MI 48827-0269.