Income Tax Return Clarification
What is the income tax return? Each spring we file federal and state income tax returns. We are all familiar with 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 wage earners receive their wage and tax withholding statement 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 determine the correct dollar amount of taxes for which the individual is liable.
Although a person filing the papers detailing earnings, 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. And then, your tax return states how much you pay in tax to the federal and state governments.
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.
To summarize, 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:
- Federal IRS Inheritance Income Tax Return Laws & Rates To determine if you will or will not have to...
- Individual Income Tax Return Filing & Calculator Knowing how much you will owe on your taxes when...
- PA State Income Tax Return Form for 2009, 2010 The Pennsylvania Department of Revenue requires individuals to file an...
- Late Income Tax Return Forms If you have missed the income tax deadline and you...
- Oklahoma State Tax Forms for 2009, 2010 If you earned sufficient income in the State of Oklahoma...
