|
Income Tax Return The Income Tax Return, what is it anyway? Income tax return filing season is upon us. We all know about filing our taxes, paying our taxes, and getting our tax returns, but somehow the term "tax return" is not always clearly understood. The story begins in January through March every year when employees receive their wage and tax withholding statement from their employers. Students will receive statements of tuition, scholarship, and aid information covering the previous year. An income tax return form is then used to take the income data and determine the correct dollar amount of taxes for which the individual is liable. Although a person filing the papers detailing wages, deductions, and taxes may have some or all of their withheld taxes returned to them, that is not what is meant by the phrase "income tax return". Actually, what it 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 on income. Finally your report details how much income tax you actually need to pay. To summarize, the income tax return is the document that you fill out and send to the IRS and your state tax department.
Income Tax © Copyright 2009 ww |