A tax return is a form on which a person or entity reports income, deductions, and exemptions to the federal or state taxing authority (IRS or state tax authority), and on which the person or entity’s income tax liability is calculated.
In California, as in all states, a tax return is a document filed with the state taxing authority (the California Franchise Tax Board for state taxes) and the federal taxing authority (the Internal Revenue Service, or IRS, for federal taxes). This form reports an individual's or entity's income, deductions, and exemptions for the year. For individuals, the most common form is the 1040 for federal taxes and the 540 form for California state taxes. The information provided on these forms is used to calculate the taxpayer's total income tax liability. Tax returns must be filed annually by a specified deadline, which is typically April 15th for federal taxes and varies for state taxes. Failure to file a tax return or pay any taxes due by the deadline can result in penalties and interest charges. California residents are subject to both federal and state income tax laws, and must comply with the filing requirements as set forth by both the IRS and the California Franchise Tax Board.
