Tax

A Guide to Your Tax Return

A Guide to Your Tax Return

A Guide to Your Tax ReturnWhat is a Tax Return?

A tax return is a report filed with the Internal Revenue Service (for tax returns filed within the United States) or with a local tax collection agency that delivers information used to decipher and calculate income tax and other taxes given an individual’s financial situation.

Tax returns are typically prepared using forms prescribed by the Internal Revenue Service or other applicable taxing agencies in the United States.

In general, three outcomes are possible for filing a tax return: the taxpayer has either been charged too much or too little for their income earned (the amount withheld exceeds their obligation) or they have been charged the correct amount. If an excess of funds is present (common examples include an employer withholding wages), the government must refund them, whereas if they have been charged too little, the individual taxpayer must makeup the difference.

Tax returns are used to organize, compute, and deliver an individual or corporate taxpayer’s obligation. The typical or normal deadline by which an individual must file their federal tax return for a given fiscal year is April 15th of the following year.

Based on the Internal Revenue Code, tax returns are classified as either information returns or tax returns. In the more specific sense, tax returns are reports that list all tax liabilities and payments. In most instances, tax returns contain all viable and pertinent financial information that is necessary to compute the individual’s or underlying organization’s tax return.

Information returns are forms of federal tax returns used to transmit information concerning income, receipts, or other matters that may affect a taxpayer’s liability. Examples of these tax returns include the W-2 Form and Form 1099, which are both used to report the amount of income that an employer, broker, independent contractor, other entity pays to a taxpayer.

All individuals who earn an income in the United States are legally obligated to file Federal tax returns. The standard individual tax return in the United States is the Form 1040; there are several variations and chapters within the 1040 as well numerous supplemental forms.

All tax returns may be filed individually or as part of a family (known as a joint tax return). Married couples may to choose to file separately or together depending on what best suits their incomes. Children under the age of 18 may be considered dependents based on United States tax law. This status simply means that their income and allowable deductions are included with their parents’ tax returns.

The governing body in charge of the levy is responsible for issuing tax return documents to all its taxpayers.

In the United States, tax returns may be filed by an individual with the help of a certified public accountant a tax accountant, or by utilizing a specialized computer software program.
Share

Related Articles

Tax News

Woman Sentenced to Five Years Following Tax Fraud Scheme The plan seemed perfect to the three young Sacramento women: use internet tax software like TurboTax, steal Social Security numbers, and start filing fraudulent tax returns in the hopes of getting large refunds.
Proposed Pregnancy Tax Break Creates Controversy Proposed Pregnancy Tax Break Creates Controversy Michigan lawmakers have proposed a controversial new law that would give tax breaks to some pregnant women.
Statistics of Income Bulletin Released Statistics of Income Bulletin Released The Internal Revenue Service (IRS) released the 2012 issue of the Statistics of Income Bulletin last Wednesday.
More Tax Relief for Victims of Hurricane Sandy More Tax Relief for Victims of Hurricane Sandy The Internal Revenue Service (IRS) has announced more tax relief for businesses and individuals affected by Hurricane Sandy in Connecticut, New Jersey, and New York.
2013 Inflation Adjustments and Pension Plan Limitations 2013 Inflation Adjustments and Pension Plan Limitations On October 18, 2012, the Internal Revenue Service announced the increase of certain tax benefits because of inflation adjustments and 2013 pension plan limitations.
Farmers Affected by Drought Have Time to Replace Livestock Farmers Affected by Drought Have Time to Replace Livestock According to the Internal Revenue Service, farmers and ranchers affected by the huge drought in the United States have an extension to replace livestock and defer tax on gains made through forced sales.
Executive Director Pleads Guilty to Illegal Campaign Contributions Executive Director Pleads Guilty to Illegal Campaign Contributions On October 1, 2012, the US Attorney’s Office for the District of New Jersey announced that Thomas J.
Filing and Payment Extensions End October 15th Filing and Payment Extensions End October 15th On September 28, 2012, the Internal Revenue Service announced that taxpayers who received tax-filing extensions will have to file the forms by October 15.
Much Awaited Statistics of Income Bulletin Much Awaited Statistics of Income Bulletin On September 24, 2012, the Internal Revenue Service released the Summer 2012 issue of the Statistics of Income Bulletin.
Victims of Straight-Line Winds in WV Eligible for Tax Relief Victims of Straight-Line Winds in WV Eligible for Tax Relief On September 20, 2012, the Internal Revenue Service declared that victims of severe storms in parts of West Virginia that occurred on or around June 29, 2012, may receive tax relief.
Update Tax Relief for Hurricane Isaac Update Tax Relief for Hurricane Isaac The Internal Revenue Service has announced tax relief for victims of Hurricane Isaac on September 5, 2012, and the IRS has updated the areas for tax relief on September 17, 2012.
Obama Calls for Tax Credits for Unemployed Veterans Obama Calls for Tax Credits for Unemployed Veterans Calling on all members of Congress to put the country ahead of politics, President Obama called for action to help unemployed and injured Veterans land jobs during the difficult economy.
Payroll Tax Cut May Not Be Extended Payroll Tax Cut May Not Be Extended Republicans, who have already blocked much of President Obama's $447 billion jobs creation bill, may now be moving towards not extending the payroll tax cut as it expires at the end of the year.
France to Increase Tax, Cut Budget During Financial Difficulty France to Increase Tax, Cut Budget During Financial Difficulty With the European financial crisis creating havoc among Euro Zone member's economy, France has been forced to re-tool their budget in light of an unbalanced budget.

Guide To: Tax Lawyers

Guide to Finding Tax Lawyer Guide to Finding Tax Lawyer How do I find a Tax Lawyer?Tax lawyers specialize in helping clients who need guidance in navigating the complex tax codes of the United States and local state taxes.