Legal Definitions - tax return

A tax return is a document that individuals or organizations are required to file with the Internal Revenue Service (IRS) or other tax agencies for state and local entities. It provides details of the taxpayer's or organization's tax obligations for the year. The tax return includes calculations of the taxable income, claimed deductions, and tax credits, which ultimately determine the tax liability.

Submitting a tax return is mandatory, and failure to do so can result in fees or other penalties. The tax return is not necessarily the final calculation of the tax liability, but rather the original calculations submitted to the government agency by the filer or their tax accountant. The government agency may or may not accept the calculations as correct.

For example, if an individual earned $50,000 in a year and claimed $10,000 in deductions, their taxable income would be $40,000. Based on the tax bracket they fall into, they would owe a certain amount of taxes. The tax return would show these calculations and the resulting tax liability.

To avoid any penalties, it is important to submit the tax return on time as dictated by the relevant government agency. For a copy of a 2020 Federal individual income tax return and further Federal tax information, see IRS Form 1040.