What Is a Tax Return?

What Are Tax Returns?

A tax return is the paperwork you submit to the IRS that reports your yearly income and calculates your tax liability. When you file a tax return, you're providing the IRS with a complete picture of your financial situation, including wages, other forms of income, deductions and credits.

It's important not to confuse a tax return with a tax refund. Your tax return is the actual form you file, while a tax refund is money the IRS returns to you if you've overpaid your taxes throughout the year.

It's also helpful to know the difference between tax year and filing year. The tax year is the calendar year for which you're reporting income—for example, 2025. The filing year is when you actually submit your return—so your 2025 tax return would be filed in 2026, typically by April 15.

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You could save time preparing your taxes, and get assistance maximizing your refund. Plus, many services provide audit assistance to give you confidence when you file.

What Information Appears on a Tax Return?

You file your individual taxes using IRS Form 1040, which allows you to report income, claim deductions, account for payments made throughout the year and calculate refunds or additional taxes owed. Here's a general breakdown of what's on an individual tax return:

• Personal information: Name, mailing address and Social Security number
• Filing status: Single, married filing jointly, married filing separately, head of household or qualifying widow(er)
• Dependents: Names, relationships to you and their Social Security numbers
• Income: Wages, salaries, tips, business income from independent contracting, investment and interest income, retirement distributions and Social Security benefits
• Adjustments to income: Student loan interest, educator expenses, individual retirement account (IRA) contributions, health savings account contributions and other adjustments that reduce your adjusted gross income; these are outlined in Schedule 1
• Deductions: Standard or itemized deductions; if you itemize, you'll file Schedule A separately to show your deductions
• Taxes paid: Tax withheld from your paycheck (shown on your W-2) and other estimated taxes you've paid throughout the year
• Tax credits: Examples include the child tax credit, child and dependent care credit, earned income tax credit or other refundable or nonrefundable tax credits, if you're eligible
• Refund or balance due: The amount you'll receive or owe after calculating your tax for the year and comparing it to what you've paid in withholding and estimates

Learn more: What Documents Do You Need to File Taxes?

Do I Have to File a Tax Return?

Whether you need to file a tax return depends on your gross income, filing status and age. For the 2025 tax year, the IRS sets minimum income thresholds that trigger a filing requirement. If your gross income exceeds these amounts, you must file a return:

Source: IRS

Special Situations That Require You to File

Even if your income falls below the thresholds listed above, you must file a tax return if any of these situations apply:

• You had net earnings from self-employment of $400 or more.
• You owe alternative minimum tax.
• You owe additional tax on a qualified retirement plan, including an IRA or other tax-advantaged account.
• You owe Social Security or Medicare tax on tips you didn't report to your employer or on wages you received from an employer who didn't withhold these taxes.
• You owe household employment taxes.
• You received distributions from a health savings account, Archer medical savings account (MSA) or Medicare Advantage MSA.
• You received advance payments of the premium tax credit for health insurance purchased through the health insurance marketplace.
• You received at least $108.28 in wages from a church or qualified church-controlled organization that's exempt from employer Social Security and Medicare taxes.

Reasons to File Even if You're Not Required To

Filing a tax return when you're not required to can benefit you financially. You may want to file if:

• Your employer withheld federal income tax from your paycheck and you're owed a refund.
• You made estimated tax payments for the year or had an overpayment for the previous year applied to this year's estimated amount owed.
• You qualify for refundable tax credits like the earned income tax credit, premium tax credit or child tax credit.
• You need your tax return for financial aid applications.
• You need your tax return to apply for a loan or mortgage, especially if you're self-employed.

The only way to receive a refund of withheld taxes or claim refundable credits is to file a return. The IRS doesn't automatically issue refunds without a tax return.

Learn more: How to File Your Taxes for the First Time

How to File a Tax Return

The forms and documentation you need to file your taxes depend on your situation. Being self-employed, itemizing deductions and having investment income or capital gains can complicate your return and require additional paperwork.

You have two main options for submitting your tax return: electronic filing or mailing a paper return. E-filing is faster, more secure and typically results in quicker refunds. The IRS processes e-filed returns within 21 days, while paper returns can take six to eight weeks.

Most tax preparation software allows you to e-file directly. If you prefer to file by mail, send your completed Form 1040 and supporting documents to the IRS address listed in the Form 1040 instructions for your state.

For basic individual filers, here are the actions you'll need to take to complete your tax return.

Report Your Earnings and Income

Account for all the income you made throughout the year. This includes money you earned from employment, self-employment or side gigs. It also includes interest from bank accounts, dividends paid on investments and any capital gains or losses.

The IRS receives copies of all W-2 and 1099 forms sent to you. Your reported income should match the total from all forms you received. If your W-2 shows you earned $70,000, but you only report $37,000, the IRS will inquire about the difference and may audit your tax return.

Use these forms to report your income:

• W-2 forms: How much you earned from your employer
• 1099-NEC forms: Income from independent contracting (use Schedule C to calculate self-employment income)
• 1099-INT: Interest paid to you
• 1099-DIV: Dividends paid
• Schedule C: Income and deductible expenses from a business you own
• Schedule D: Income or losses from capital gains (completed separately)

Add Up Taxes You've Paid

Your tax return calculates whether you owe additional taxes or are due a refund by comparing your total tax liability to what you've already paid throughout the year.

Most people pay taxes through withholding from their paychecks, but you may have also made estimated tax payments if you're self-employed or have other income not subject to withholding.

• Use information from your W-2 to report taxes withheld from your wages.
• Add up any estimated tax payments you've made throughout the year.

Document Deductions and Credits

Deductions and credits reduce your tax liability, so it's important to claim all those available to you. Gather the necessary documentation to support your claims:

• Determine your correct filing status.
• Count your dependents.
• Choose between a standard or itemized deduction (if you itemize, use Schedule A to show your deductions and keep receipts).
• If you're eligible for tax credits, check the guidelines for required documentation.

Learn more: Tips to Make Tax Filing Easier in 2026

How Long to Keep Tax Returns

The IRS recommends keeping your tax return and supporting documents on file for at least three years. This includes:

• Receipts for deductible expenses
• Mileage logs
• Proof of payments related to deductions or credits
• Documents from home sales or purchases
• Stock transaction records
• Retirement account statements
• Business income and expense records
• Rental property documentation

Documents related to major financial transactions like home sales, stock trades and retirement accounts should be kept longer. They may be helpful if you're selected for an audit. Although audits typically occur within three years of filing, a substantial error could trigger an IRS audit beyond the three-year window. If you didn't file taxes or if information in your return could be disputed as fraudulent, save your documentation indefinitely.

While having past tax returns on hand is helpful for reference when completing future returns or documenting your income on loan applications, you can also download a transcript of a prior year's tax return on the IRS website if you haven't kept your records.

Learn more: Tax Deadlines You Need to Know

Frequently Asked Questions

The Bottom Line

If tax preparation feels overwhelming, help is available. Tax preparation software can walk you through the process step by step with instructions that clarify IRS rules and terminology. Many taxpayers qualify for free access to tax prep software through IRS Free File. For a fee, a qualified tax preparer can answer your questions and help you complete your return correctly while maximizing your deductions and credits.

Filing a tax return can seem daunting with its specialized terminology, paperwork and IRS requirements. But the basic elements are straightforward. Complete the form honestly and accurately, save your supporting documents, double-check your calculations and file on time. Following these steps will help you navigate tax season successfully.