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 Massachusetts, as in all states, taxpayers are required to file a tax return with both the federal government and the state tax authority. The federal tax return is filed with the Internal Revenue Service (IRS) and the state tax return is filed with the Massachusetts Department of Revenue (DOR). The tax return forms require individuals and entities to report their income, deductions, and exemptions for the year. Based on this information, the tax return calculates the amount of income tax the taxpayer owes or the amount of refund the taxpayer is entitled to receive. Massachusetts has its own set of tax forms and instructions that are used to calculate state income tax liability, which may differ from federal income tax calculations. Taxpayers in Massachusetts must file their state tax returns by April 15th, the same deadline as the federal tax return, unless an extension is granted.