City of Oakwood Income Tax Return Instructions

PAGE 1:

Complete taxpayer status. Print your name, current mailing address, social security or federal identification number, city of employment and telephone number. If you were a partial year resident of Oakwood, please indicate the date moved into or out of the City and previous address.

LINE 1:

Enter total qualifying wages from page 2, Column 2.

LINE 2:

Enter other income from page 2, Line 12.

LINE 3:

Total Lines 1 and 2.

LINE 4:

Multiply the amount in Line 3 by 2.5% (.025).

LINE 5:

Enter amount of Oakwood tax withheld by employers as shown on W-2 Forms.

Residents (only) of the City of Oakwood are allowed a 90% credit for taxes due and paid to other work cities on the same income taxed by Oakwood (line 3), provided supporting documentation is attached to the return (e.g. W-2 forms, copies of tax returns filed with other cities, etc.). If taxable income is comprised exclusively of income items (no losses from self-employment, partnerships or rentals), credit may be claimed for taxes due and paid to other cities, at the lesser of the employment city or 2.5%. Credit is then limited to 90%. However, if losses are claimed in computing other taxable income, the losses must be ratably allocated against net profit income in calculating the credit allowable for taxes paid to other cities as follows:

Tax Credit Calculation Table

	Total	Dayton	Centerville
Business Income (Sch C, E or F) ………………………	$40,000	$25,000	$15,000
Municipal Contribution % ………………………………		62.50%	37.50%
Business Loss (Sch C, E, F or NOL) …………………	($5,000)
Net Profit Income (Section B, Line 10)…………………	$35,000	x 35,000	x 35,000
Tax Rate ………………………………………………………		x 2.5%	x 2.25%
Allowable Credit (before 90% limit)……………………	$842	$547	$295

B(1).

Enter other city credits from page 2, Column 4, then multiply by 90% (0.90).

Enter total estimated tax payments made and overpayments from prior years.

Total lines 5(A), 5(B), and 5(C).

LINE 6:

Line 4 less Line 5(D). If results exceed $200.00, you are required to complete Lines 9-12.

LINE 7:

If return is past due, calculate late filing penalty, underpayment penalty and interest as noted on page 1 of the instructions.

LINE 8:

Total Lines 6 and 7. If Line 8 is a negative and greater than $10.00, indicate amount you want transferred to next year on line 8A and/or amount you want refunded on line 8B. For refunds, please also check the refund box at the top of the page.

LINE 9:

Enter total estimated income subject to tax and multiply by 2.5% (.025).

LINE 10:

Enter estimated Oakwood Tax to be withheld by employer.

Enter estimated credit for taxes to be paid to another municipality x 90% (0.90).

Enter overpayment from prior year.

Total Lines 10(A), 10(B), and 10(C).

LINE 11:

Line 9 less Line 10(D).

LINE 12:

If Line 11 is $200.00 or more, calculate the required estimated tax payment, Line 11 x 25%.

LINE 13:

Total Lines 8 and 12.

PAGE 2:

SECTION A:

List all compensation earned including scholarship and fellowship income. Use highest figure on W-2 (typically Box 5 of W-2). Use line 5 to report taxes paid on income reported in Section B.

SECTION B:

Residents should complete lines 1-7 as applicable, attaching related federal schedules. All items of income/<loss> are to be reported (regardless of where earned) without regard to federal passive activity loss carryovers/limitations. Taxable royalties include amounts received from interests in land and rents and royalties derived therefrom.

Non-residents should complete lines 1, 2, 6, 7 and 11 only to the extent the income was earned or services were performed within Oakwood City limits.

Taxpayers with a net operating loss carryover should enter the amount calculated from the Net Operating Loss Worksheet available on the City’s website.

MAIL COMPLETED RETURNS TO:

CITY OF OAKWOOD INCOME TAX DEPARTMENT
P.O. BOX 269
EATON RAPIDS, MI 48827-0269

MAIL REFUND REQUESTS TO:

CITY OF OAKWOOD INCOME TAX DEPARTMENT
30 PARK AVENUE
OAKWOOD, OH 45419