What Is an Individual Tax Return?
An individual tax return is an official form that a person or a married couple submits to a federal, state, or local tax authority to report all taxable income received during a specific period, usually the previous year. This form is used to calculate how much tax is owed or if a refund is due. In the United States, most individuals file their federal tax returns using IRS Form 1040 or, for seniors, Form 1040-SR. The return includes personal information, income details, deductions, credits, and the calculation of taxes owed or refunds due.
How to File Taxes
- Determine if You Need to File
- Use the IRS online tool or check IRS guidelines to see if your income and filing status require you to file a tax return.
- Gather Required Documents
- Collect forms and receipts showing your income (like W-2s, 1099s) and any tax-deductible expenses.
- Choose a Filing Method
- Electronically: Use tax software, IRS Free File, or the IRS Direct File program (available in some states).
- Paper Forms: Complete Form 1040 (or 1040-SR for seniors) and mail it to the IRS.
- Tax Professional: Hire an accountant or tax preparer to file on your behalf.
- Complete Your Tax Return
- Fill in your personal information, report all income, claim deductions and credits, and calculate your tax liability or refund.
- Submit Your Return
- File electronically for faster processing or mail your paper return to the IRS.
- Pay Any Taxes Owed or Track Your Refund
- If you owe taxes, pay by the deadline (usually April 15th) to avoid penalties. If you overpaid, you could request a refund.
- Keep Copies of Your Tax Return
- Retain copies of your tax returns for at least three years for your records.
Additional Notes
- Every state has its own tax authority, and you may need to file a state tax return if your state taxes income.
- Non-citizens and those without a Social Security number can use an Individual Taxpayer Identification Number (ITIN) to file.
- If you cannot file by the deadline, you can request an extension using IRS Form 4868.
Filing your taxes ensures you meet your legal obligations and helps you claim any refunds or credits you are eligible for.