What is a Tax Return?
A tax return is a form or set of forms filed with a tax authority that reports income, expenses, and other pertinent tax information. In the United States, individuals and businesses file tax returns with the Internal Revenue Service (IRS) or with state and local tax collection agencies to calculate tax liability, schedule payments, or request refunds.
Key Components of a Tax Return
- Income: All sources of income including wages, dividends, capital gains, and other earnings
- Deductions: Expenses subtracted from gross income to reduce taxable income
- Credits: Amounts subtracted directly from tax liability
- Payments: Taxes already paid through withholding or estimated payments
Types of Tax Returns
- Form 1040: The standard federal income tax form for individuals
- Form 1040-SR: A version of Form 1040 designed for seniors
- Form 1065: Used by partnerships to report income, deductions, and credits
- Form 1120: The corporate tax return form
- Form 990: Used by non-profit organizations
Filing Status
Your filing status affects your tax rate and available deductions. The five filing statuses are:
- Single
- Married Filing Jointly
- Married Filing Separately
- Head of Household
- Qualifying Widow(er)
Gathering Required Documents
Before starting your tax return, collect these essential documents:
- W-2 forms from employers
- 1099 forms for independent contractor work
- Investment income statements
- Mortgage interest statements (Form 1098)
- Receipts for tax-deductible expenses
- Social Security numbers for you and dependents
Deductions and Credits
Common Deductions
- Mortgage interest
- State and local taxes (up to $10,000)
- Charitable contributions
- Student loan interest
- Business expenses
Popular Credits
Child Tax Credit: Worth up to $2,000 per qualifying child
Earned Income Tax Credit: Helps low to moderate-income workers
American Opportunity Credit: For higher education expenses
Filing Methods
Electronic Filing
E-filing is the fastest and most secure way to submit your return. Options include:
- IRS Free File for those with income below $73,000
- Commercial tax preparation software like TurboTax or H&R Block
- Professional tax preparers
Paper Filing
While less common, you can still file paper returns by mail. Ensure you:
- Use the correct mailing address for your location
- Send via certified mail for tracking
- Keep copies of all documents
Important Deadlines
Regular Deadline: April 15
Extension Deadline: October 15
Quarterly Estimated Taxes: April 15, June 15, September 15, January 15
Common Mistakes to Avoid
- Missing the filing deadline
- Math errors
- Incorrect information (Social Security numbers, bank details)
- Missing signatures
- Overlooking deductions and credits
- Forgetting to report all income
Resources for Assistance
- IRS Free File: Free tax preparation and filing for eligible taxpayers
- Volunteer Income Tax Assistance (VITA): Free tax help for those making $60,000 or less
- Taxpayer Advocate Service: Independent organization within the IRS
- Visit the IRS website for forms, publications, and guidance
Remember to maintain tax records for at least three years after filing, and consider seeking professional help for complex tax situations or major life changes.