Tax return

A tax return is a document filed with a tax authority that reports income, expenses, and other pertinent financial information for a specific tax year. It is typically required for individuals and businesses to determine their tax liability or refund. The return includes various forms and schedules, detailing income sources, deductions, and credits that may reduce the amount owed. In the United States, the Internal Revenue Service (IRS) oversees the process, and the most common form is the 1040 for individual taxpayers. Tax returns must be submitted annually, and deadlines vary by country. Accurate and timely filing is crucial to avoid penalties and ensure compliance with tax laws, as well as to take advantage of potential tax benefits.