A tax return is a formal document filed with the IRS or state tax authority that reports income, expenses, and other financial details to calculate your tax liability.
Who Needs to File a Tax Return?
Most U.S. citizens and residents must file a tax return if their income exceeds a certain threshold. Filing requirements depend on your filing status, age, and type of income.
Key Deadlines for Filing
The usual deadline for filing federal tax returns is April 15. Extensions can push this to October 15, but taxes owed must still be paid by the original April deadline to avoid penalties.
Types of Tax Forms
Form 1040: Standard individual income tax return. Form 1099: Reports income from sources other than wages (e.g., freelance or investment income). Form W-2: Provided by employers to report wages and taxes withheld.
Deductions and Credits
Taxpayers can reduce their taxable income using deductions, such as for mortgage interest or student loans. Credits, like the Child Tax Credit or Earned Income Tax Credit (EITC), directly reduce the amount of taxes owed.
Penalties for Non-Compliance
Failing to file or pay taxes on time can result in penalties, including a failure-to-file penalty and failure-to-pay penalty.
How to File Your Taxes
You can file your taxes manually, electronically (e-filing) and with professional help.
Refunds and Payments
If you overpaid taxes, you may receive a refund via direct deposit or check or you owe taxes, payment can be made electronically.