Small Business Tax Dictionary

A tax return is an official document filed with tax authorities that provides detailed information about an individual's or business's income, deductions, credits, and taxes owed for a specific period. Tax returns are used to calculate tax liability, reconcile taxes already paid through withholding or estimated payments, and determine whether a refund is due or additional payment is required. Proper preparation and filing of a tax return are essential for compliance with tax laws, accurate reporting of financial information, and claiming entitled deductions and credits. It serves as a critical tool for tax administration and individual financial management, reflecting a comprehensive summary of financial activities and tax positions.