Tax return (United States)
Encyclopedia
Tax returns in the United States
are reports filed with the Internal Revenue Service
(IRS) or with the state or local tax
collection agency (California Franchise Tax Board
, for example) containing information used to calculate income tax
or other taxes. Tax returns are generally prepared using forms
prescribed by the IRS or other applicable taxing authority.
returns can be classified as either tax returns or information returns, although the term "tax return" is sometimes used to describe both kinds of returns in a broad sense.
Tax returns, in the more narrow sense, are reports of tax liabilities and payments, often including financial information used to compute the tax.
In common usage, people often refer to a refund of overwithheld taxes as a "tax return." This is incorrect terminology, as it should properly be called a tax refund
. The term "tax return" specifically refers to the documents filed with the IRS such as Form 1040.
Information returns are reports used to transmit information about income, receipts or other matters that may affect tax liabilities. For example, Form W-2 and Form 1099 are used to report on the amount of income that an employer, independent contractor, broker, or other payer pays to a taxpayer. A company, employer, or party which has paid income (or, in a few cases, proceeds that may ultimately be determined not to be income) to a taxpayer is required to file the applicable information return directly with the IRS. A copy of the information return is also sent directly to the payee. These procedures enable the IRS to make reasonably sure that taxpayers report income correctly.
Transfer taxes
Form 706, U.S. Estate Tax Return;
Form 709, U.S. Gift (and Generation-Skipping Transfer) Tax Return;
Statutory excise taxes
Form 720, Quarterly Federal Excise Tax Return;
Form 2290, Heavy Vehicle Use Tax Return;
Form 5330, Return of Excise Taxes Related to Employee Benefit Plans;
Employment (payroll) taxes
Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return;
Form 941, Employer’s Quarterly Federal Tax Return;
Income taxes
Form 1040, U.S. Individual Income Tax Return;
Form 1040A, U.S. Individual Income Tax Return;
Form 1040EZ, Income Tax Return for Single and Joint Filers with No Dependents;
Form 1041, U.S. Income Tax Return for Estates and Trusts (for 1993 and prior years, this was known as “U.S. Fiduciary Income Tax Return”);
Form 1065, U.S. Return of Partnership Income (for 1999 and prior years, this was known as “U.S. Partnership Return of Income”) (information return);
Form 1099 series (various titles) (information return);
Form W-2 (information return);
Form 1120, U.S. Corporation Income Tax Return;
Form 1120S, U.S. Income Tax Return for an S Corporation;
returns in general is imposed under . The more specific legal obligation to file Federal income tax returns is imposed under .
The standard U.S. individual tax return is Form 1040. There are several variations of this form, such as the 1040EZ and the 1040A, as well as many supplemental forms.
U.S. citizens and residents who realize gross income in excess of a specified amount (adjusted annually for inflation) are required by law to file Federal income tax returns (and pay remaining income taxes if applicable).
Gross income includes most kinds of income regardless of whether the income arises from legitimate businesses. Income from the sale of illegal drugs, for example, is taxable. Many criminals, such as Al Capone
, are indicted not (or not only) for their non-tax crimes, but for failure to file Federal income tax returns (and pay income taxes) on their ill-gotten gains.
The IRS occasionally has seen "Fifth Amendment
" returns from people who accurately report their annual income and tax liability but refuse to reveal the source of the funds on the grounds that such a statement would tend to incriminate the individual.
Many Americans find the process of filling out the tax forms more onerous than paying the taxes themselves. Many companies offer free and paid options for reducing the tedious labor involved in preparing one's tax return.
A taxpayer who finds a mistake on a previously filed individual income tax return can file corrections with Form 1040X.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
are reports filed with the Internal Revenue Service
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
(IRS) or with the state or local tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
collection agency (California Franchise Tax Board
California Franchise Tax Board
The California Franchise Tax Board collects state personal income tax and corporate income tax of California. It is part of the California State and Consumer Services Agency....
, for example) containing information used to calculate income tax
Income tax in the United States
In the United States, a tax is imposed on income by the Federal, most states, and many local governments. The income tax is determined by applying a tax rate, which may increase as income increases, to taxable income as defined. Individuals and corporations are directly taxable, and estates and...
or other taxes. Tax returns are generally prepared using forms
Form (document)
A form is a document with spaces in which to write or select, for a series of documents with similar contents. The documents usually have the printed parts in common, possibly except for a serial number...
prescribed by the IRS or other applicable taxing authority.
Federal returns
Under the Internal Revenue CodeInternal Revenue Code
The Internal Revenue Code is the domestic portion of Federal statutory tax law in the United States, published in various volumes of the United States Statutes at Large, and separately as Title 26 of the United States Code...
returns can be classified as either tax returns or information returns, although the term "tax return" is sometimes used to describe both kinds of returns in a broad sense.
Tax returns, in the more narrow sense, are reports of tax liabilities and payments, often including financial information used to compute the tax.
In common usage, people often refer to a refund of overwithheld taxes as a "tax return." This is incorrect terminology, as it should properly be called a tax refund
Tax refund
A tax refund or tax rebate is a refund on taxes when the tax liability is less than the taxes paid. Taxpayers can often get a tax refund on their income tax if the tax they owe is less than the sum of the total amount of the withholding taxes and estimated taxes that they paid, plus the...
. The term "tax return" specifically refers to the documents filed with the IRS such as Form 1040.
Information returns are reports used to transmit information about income, receipts or other matters that may affect tax liabilities. For example, Form W-2 and Form 1099 are used to report on the amount of income that an employer, independent contractor, broker, or other payer pays to a taxpayer. A company, employer, or party which has paid income (or, in a few cases, proceeds that may ultimately be determined not to be income) to a taxpayer is required to file the applicable information return directly with the IRS. A copy of the information return is also sent directly to the payee. These procedures enable the IRS to make reasonably sure that taxpayers report income correctly.
Examples
Examples of common Federal tax returns (and, where noted, information returns) include:Transfer taxes
Form 706, U.S. Estate Tax Return;
Form 709, U.S. Gift (and Generation-Skipping Transfer) Tax Return;
Statutory excise taxes
Form 720, Quarterly Federal Excise Tax Return;
Form 2290, Heavy Vehicle Use Tax Return;
Form 5330, Return of Excise Taxes Related to Employee Benefit Plans;
Employment (payroll) taxes
Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return;
Form 941, Employer’s Quarterly Federal Tax Return;
Income taxes
Form 1040, U.S. Individual Income Tax Return;
Form 1040A, U.S. Individual Income Tax Return;
Form 1040EZ, Income Tax Return for Single and Joint Filers with No Dependents;
Form 1041, U.S. Income Tax Return for Estates and Trusts (for 1993 and prior years, this was known as “U.S. Fiduciary Income Tax Return”);
Form 1065, U.S. Return of Partnership Income (for 1999 and prior years, this was known as “U.S. Partnership Return of Income”) (information return);
Form 1099 series (various titles) (information return);
Form W-2 (information return);
Form 1120, U.S. Corporation Income Tax Return;
Form 1120S, U.S. Income Tax Return for an S Corporation;
Amended return
In the United States, taxpayers may file an amended return with the Internal Revenue Service to correct errors reported on a previous income tax return. Typically a taxpayer does not need to file an amended return if he or she has math errors as the IRS will make the necessary corrections. For individuals, amended returns are filed using Form 1040X, Amended U.S. Individual Income Tax Return.Federal income taxes
The legal obligation to file Federal taxIncome tax in the United States
In the United States, a tax is imposed on income by the Federal, most states, and many local governments. The income tax is determined by applying a tax rate, which may increase as income increases, to taxable income as defined. Individuals and corporations are directly taxable, and estates and...
returns in general is imposed under . The more specific legal obligation to file Federal income tax returns is imposed under .
The standard U.S. individual tax return is Form 1040. There are several variations of this form, such as the 1040EZ and the 1040A, as well as many supplemental forms.
U.S. citizens and residents who realize gross income in excess of a specified amount (adjusted annually for inflation) are required by law to file Federal income tax returns (and pay remaining income taxes if applicable).
Gross income includes most kinds of income regardless of whether the income arises from legitimate businesses. Income from the sale of illegal drugs, for example, is taxable. Many criminals, such as Al Capone
Al Capone
Alphonse Gabriel "Al" Capone was an American gangster who led a Prohibition-era crime syndicate. The Chicago Outfit, which subsequently became known as the "Capones", was dedicated to smuggling and bootlegging liquor, and other illegal activities such as prostitution, in Chicago from the early...
, are indicted not (or not only) for their non-tax crimes, but for failure to file Federal income tax returns (and pay income taxes) on their ill-gotten gains.
The IRS occasionally has seen "Fifth Amendment
Fifth Amendment to the United States Constitution
The Fifth Amendment to the United States Constitution, which is part of the Bill of Rights, protects against abuse of government authority in a legal procedure. Its guarantees stem from English common law which traces back to the Magna Carta in 1215...
" returns from people who accurately report their annual income and tax liability but refuse to reveal the source of the funds on the grounds that such a statement would tend to incriminate the individual.
Many Americans find the process of filling out the tax forms more onerous than paying the taxes themselves. Many companies offer free and paid options for reducing the tedious labor involved in preparing one's tax return.
A taxpayer who finds a mistake on a previously filed individual income tax return can file corrections with Form 1040X.
See also
- Tax forms in the United StatesTax forms in the United StatesIRS tax forms are used for taxpayers and tax-exempt organizations to report financial information to the Internal Revenue Service of the United States. They are used to report income, calculate taxes to be paid to the federal government of the United States, and disclose other information as...
- Tax preparationTax preparationTax preparation is the process of preparing tax returns, often income tax returns, often for a person other than the taxpayer, and generally for compensation. Tax preparation may be done by the taxpayer with or without the help of tax preparation software and online services...
- Taxation in the United StatesTaxation in the United StatesThe United States is a federal republic with autonomous state and local governments. Taxes are imposed in the United States at each of these levels. These include taxes on income, property, sales, imports, payroll, estates and gifts, as well as various fees.Taxes are imposed on net income of...