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 Alabama, a tax return is a document filed with the Alabama Department of Revenue (ADOR) for state taxes, or with the Internal Revenue Service (IRS) for federal taxes. This form reports an individual's or entity's income, deductions, and exemptions for the year. For state taxes, residents use forms such as the Form 40 for individuals or the Form CPT for corporations, depending on the type of taxpayer they are. The tax return allows the ADOR or IRS to assess the correct amount of tax liability based on the reported information. Taxpayers in Alabama must file their state tax returns by April 15th, the same deadline as the federal tax return, unless an extension is granted. It's important to note that Alabama has its own set of rules for deductions and exemptions that may differ from federal regulations, and taxpayers must ensure they comply with both sets of laws when filing their returns.