Definition
An income tax return (ITR) is a document filed with a governmental tax authority, such as the Internal Revenue Service (IRS) in the United States, to report income, expenses, and other pertinent tax information. Taxpayers (individuals or businesses) use the details provided in the return to calculate their tax liability. Additionally, these forms are essential for scheduling payments or requesting refunds for overpaid taxes.
Examples
- Form 1040: Used by individuals to report their annual income and calculate taxes owed or refunds due.
- Form 1120: Filed by corporations to calculate their corporate income tax.
- Form 1065: Utilized by partnerships to report income, deductions, profits, and losses to the IRS. Partnerships themselves do not pay income taxes, but each partner must report their share of the income/loss on their personal tax return.
Frequently Asked Questions (FAQs)
1. What is the deadline for filing an income tax return in the U.S.? The typical deadline for individual income tax returns (Form 1040) is April 15th of each year, unless an extension is filed.
2. Can I file my income tax return online? Yes, most tax authorities, including the IRS, provide options to file tax returns online through e-filing systems such as IRS Free File.
3. What documents do I need to submit with my income tax return? This can vary but generally includes W-2 forms, 1099 forms, documentation of deductions such as mortgage interest statements, and records of any other income or expenses relevant to the tax year.
4. What happens if I file my income tax return late? Filing late can result in penalties and interest on any unpaid taxes. However, if you do not owe any taxes, or if you are due a refund, the penalties are different or may not apply.
5. How do I amend a mistake on my already submitted tax return? Mistakes on your tax returns can be corrected by filing an amended return using Form 1040-X for individual returns.
Related Terms
- Form 1040: The primary tax form used by individuals to file their annual income tax returns.
- Form 1120: The tax form used by corporations to declare revenues and expenses for the purpose of calculating corporate income tax.
- Form 1065: The tax form used by partnerships to report their business income and deductions.
Online References
Suggested Books for Further Studies
- “J.K. Lasser’s Your Income Tax” by J.K. Lasser Institute
- “Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes” by Tom Wheelwright
- “Income Tax Fundamentals” by Gerald E. Whittenburg and Martha Altus-Buller
- “Principles of Taxation for Business and Investment Planning” by Sally M. Jones and Shelley Rhoades-Catanach
- “Federal Income Taxation” by Joseph Bankman, Thomas Griffith
Fundamentals of Income Tax Return: Accounting Basics Quiz
Remember, accuracy with your financial reports is key to understanding your tax liability and ensuring compliance with tax obligations. Happy studying!
