«
»

Income Tax Return Definition

What is the income tax return? Each spring we file federal and state income tax returns. We all know about filing our taxes, paying them, and getting our tax refund, but somehow the term “tax return” is not always clearly understood.

The situation begins in January through March of every year when employees receive their wage and tax withholding print out from their employers. Those in school will receive statements of tuition, scholarship, and aid information covering the previous year. An income tax return form is then used to take the amount of earnings and figure out the correct dollar amount of taxes for which the individual is liable.

Although a person filing the forms detailing wages, deductible expenses, and taxes may have some or all of their withheld taxes returned to them, that is not what is meant by the term “income tax return”. Actually, what “tax return” refers to is threefold. First, you are letting the government know, or are returning a report on, how much you made in the previous year. Next you are stating how much you have paid in taxes, so far. Finally your report details on how much income tax is your responsibility.

So in going through this tax return process many people show that they have overpaid their income tax and therefore have a refund coming. The alternative is of course, that there was not enough money withheld, or that the quarterly payments did not fully cover and now a payment is owed.

In summary, the phrase “income tax return” is referring to the document that you fill out and send to the IRS and to your state tax department.

Related posts:

  1. Federal IRS Inheritance Income Tax Return Laws & Rates To determine if you will or will not have to...
  2. 2009, 2010 Tax Return Filing Dates Good News for Folks in Minnesota and North Dakota The...
  3. Income Tax Bracket Calculator If your looking to calculate your taxes owed or potential...
  4. Free Tax Refund & Return Estimator 2009, 2010 It’s nice to know that how much your income tax...
  5. Income Tax Filing for Married Couples for 2009, 2010 If you are trying to figure out your filing requirements...

This entry was posted on Friday, February 27th, 2009 at 11:24 am and is filed under Ingenious. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Comments are closed.